REPORT: Gov't 'Biggest Drag' On Economy...

Discussion in 'Politics' started by paulitician, Apr 29, 2012.

  1. paulitician
    Offline

    paulitician Platinum Member Supporting Member

    Joined:
    Oct 7, 2011
    Messages:
    38,401
    Thanks Received:
    4,136
    Trophy Points:
    1,130
    Ratings:
    +11,974
    Government has become its own worst enemy when it comes to the economy, with public spending putting a damper on growth that otherwise continues at a steady if unspectacular pace.

    Friday's gross domestic product report confirmed what a drag government can be: While consumer spending grew at a 2.9 percent clip, state and local governments cut back spending by 1.2 percent on an annualized basis and the federal government pulled back by 5.6 percent.

    As a result, the GDP number showed just a 2.2 percent improvement. The report disappointed economists, some of whom had the number as high as 3 percent and beyond, and cast an uncertain future on a stock market dependent on Federal Reserve stimulus for growth.

    "None of this is all that surprising, so where is the miss?" wondered Brown Brothers Harriman global currency strategist Marc Chandler, after noting some fairly pedestrian and in-line quarterly growth results. "Contrary to what passes as conventional wisdom, the main drag is coming from the government itself."

    Before anyone starts thinking that Washington suddenly has gotten religion on spending, the bulk of the federal government cuts came from defense spending, which plunged 8.1 percent.

    State and local governments, facing the necessity to balance their budgets against declining revenue (not to mention the specter of Meredith Whitney's muni bond default forecast) likely will continue to cut, though that's not as certain with their federal counterpart. Washington's drop in spending came after a 19.1 percent decrease in the fourth quarter of 2011...

    Read More:
    News Headlines
    DRUDGE REPORT 2012®
     
  2. Dick Tuck
    Offline

    Dick Tuck Board Troll

    Joined:
    Aug 29, 2009
    Messages:
    8,511
    Thanks Received:
    501
    Trophy Points:
    48
    Ratings:
    +502
    So you're bitching about the cuts to discretionary spending under Obama? WTF?????
     
  3. Mr. Shaman
    Offline

    Mr. Shaman Senior Member

    Joined:
    May 4, 2010
    Messages:
    23,892
    Thanks Received:
    817
    Trophy Points:
    48
    Ratings:
    +819
    ....Not-to-mention their crying & whining about Obama "not doing anything"....

    [​IMG]

    ....after they'd campaigned for GRIDLOCK, in 2010.


    [​IMG]
     

Share This Page