The “Obama Recovery” still isn’t.
The U.S. economy shrank at an annual rate of 2.9 percent during the first three months of 2014, government bean counters announced this morning. That matches the worst non-recession contraction of the U.S. economy in over 40 years.
Perhaps, taking a cue from minimum wage hike laws, the Administration could issue a decree for everyone to build, spend and borrow more?
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This is what happens when you take money from the productive part of the economy and shift it to the non-productive part of the economy. It is elementary.
This is not keynesian economics. The keynesian equation for GDP has a multiplier for consumer consumer spending because it can be assumed that a consumer and his or her vendor each accrue value from a transaction (it’s voluntary). Money spent on taxes has no multiplier.
Obama’s economic policy, as far as he has one, is designed to depress economic growth and private-sector job creation.
I half wonder if the Administration “nudged” the numbers worse now so that when 2nd quarter numbers come in, it looks better. Keep in mind that the definition of a recession is a few quarters of contraction, no?
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