Wizards of Smart Surprised by Shrinking Economy
Do you know, ladies and gentlemen, the economy in the fourth quarter, they told us, grew at a rate of 1.1%, I think is what they said. But it turns out that’s not the case. The economy actually contracted, gross domestic product. “The US economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.”
That’s what’s gotten us into this problem. Anyway, the economy shrunk. You know what the Democrats are out saying? This is the best looking contraction that there’s ever been in this country. And, of course, the media’s repeating that. That’s not a surprise to you and me. But nevertheless, it is incredibly serious. And you remember what this administration’s growth forecasts were for the next three to four years. Their growth forecasts were anywhere between three and four and a half percent. Our growth rate is below the ChiComs. Our growth rate is below Cuba. We’re not growing now. The fourth quarter we actually contracted.
That means that the employment situation isn’t changing. That means wages aren’t changing positively. There’s no growth in people’s incomes. It’s just sad to watch this happening right in front of our eyes. The inflation rate is at least 2%, probably higher than that. So a casual calculation here, a 0.1% GDP contraction could mean that for all intents and purposes we’re back into a recession. What do you need, a couple or three quarters in a row for that to be officially proclaimed?