Saturday, October 27, 2012

Obamanomics and why America cannot survive if he wins another four years.  A real look at why third quarter economic growth showed a slight increase from the Wall St Journal.


As problematic is where the growth came from and where it has gone missing. Consumer spending provided the most lift, perhaps helped by the asset burst inspired by the Federal Reserve's money printing. If Mr. Obama is re-elected, he should buy dinner for Ben Bernanke and the Fed Governors for their in-kind political contributions. The problem is that consumers can't continue to spend if the overall economy doesn't grow fast enough to raise incomes faster than it is.
The other big third-quarter growth driver was federal government spending, which rose 9.6%. Overall government outlays rose 3.7% and accounted for about 0.7 percentage points of the 2% overall GDP increase. Economist David Malpass calculates that growth in private output was closer to 1.3%. So much for the private economy "doing fine" and the government slumming for dollars.

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