Re: Obama Recovery: Q4 GDP goes negative
posted at 1/31/2013 12:24 PM EST
In response to UserName99's comment:
Historical GDP continues to trend upward since President Obama originally righted the capsized S.S. GOP George W. Bush, which he inherited on Jan 20, 2009.
It always takes longer to clean up a mess than it takes to make it.
Slow and steady wins the race.
Dec. 31, 2012 15.83T
Sept. 30, 2012 15.81T
June 30, 2012 15.59T
March 31, 2012 15.48T
Dec. 31, 2011 15.32T
Sept. 30, 2011 15.16T
June 30, 2011 15.00T
March 31, 2011 14.81T
Dec. 31, 2010 14.74T
Sept. 30, 2010 14.58T
June 30, 2010 14.41T
March 31, 2010 14.27T
Dec. 31, 2009 14.13T
Sept. 30, 2009 13.95T
June 30, 2009 13.89T
March 31, 2009 13.92T
Dec. 31, 2008 14.08T
Sept. 30, 2008 14.40T
Source: The United States Departmetn of Commerce's Bureau of Economic Analysis
So, are you saying Obama has nothing to do with GDP?
Actually, he has less to do with it than you might think.
Generally speaking, just population growth increases GDP: people need food, diapers, etc.
If you really want to examime GDP, look at GDP per capita. My recollection is was bout 2.5% during the Bush years, and has been running about 1% under the Obama years. What that tells you is, that, generally speaking, we are doing less than half as good as we were doing under Bush, which was low.
The GDP is artifically inflated because it does not take into account borrowing. That is how the formula works, so before you all come unglued and say that formula is what it is, might I remind you about the lessons we have learned discussing the U-3 and U-6. Formulas make some basic assumptions, and with the GDP, the basic assumption is NOT chronic, massive borrowing. so, the GDP is not really measuring what is going on as accurately as it should.
If you really want to see where we are in a "real" GDP sense, you would need to subtract @40% from the government spending part of the equation, as this money is not earned, but borrowe from future years. This would bring the entire number down so that the" real" domestic product would be even more negative. You would need to shave about a trillion off the 15 trillion number.
Where does that leave us? With a smaller economy than in the Bush years for each and every Obama year. The Obama economy is smaller. On this alone his polices have failed.