November 29, 2012

Pop the Champagne corks! 2.7% GDP growth!

Or, as I suggested to a FB friend (our own LatteSipper) maybe the sound is 2Liter bottles of BigK® Store brand soda.

Tyler Durden has a dim assessment of the data. And James Pethokoukis suggests "Well, I think we have a final verdict on the Obama stimulus"

OK, I think we've seen enough here. It looks like 2012 will end on a weak note with most economists viewing 2013 as probably more of the same -- and that assumes we don't plunge over the fiscal cliff and suffer another recession. For comparison purposes, let's first review Obama White House economic forecasts since 2009:

1. In August of 2009, Team Obama predicted GDP would rise 4.3% in 2011, followed by 4.3% growth in 2012 (and 4.3% in 2013, too).

2. In its 2010 forecast, Team Obama predicted GDP would rise 3.5% in 2012, followed by 4.4% growth in 2013, 4.3% in 2014.

3. In its 2011 forecast, Team Obama predicted GDP would rise 3.1% in 2011, 4.0% in 2012, 4.5% in 2013, and 4.2% in 2014.

4. In its most recent forecast, Team Obama predicted GDP would rise 3.0% this year and next, and then 4.0% after that.

Instead, GDP grew 2.4% in 2010, and 1.8% last year. So far this year, quarterly growth has been 2.0%, 1.3%, and 2.7% -- with maybe 1.5% in the current quarter. Instead of quarter after quarter of 4% growth, we've had just two: The final quarters of 2009 and 2011. Other than those, we’ve haven't had a single quarter with growth higher than this quarter's 2.7%. It's why we still have massive employment and output gaps.

We lost to this guy...

Obama Administration Posted by John Kranz at November 29, 2012 1:25 PM

... because, like capitalism, Chicago politics works every time it's tried.

Posted by: johngalt at November 29, 2012 3:17 PM | What do you think? [1]