Posted on 04/29/2012 4:53:42 AM PDT by tobyhill
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.
Dennis Flaherty | Photographer's Choice RF | Getty Images --------------------------------------------------------------------------------
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."
(Excerpt) Read more at cnbc.com ...
So, basically the Government isn’t spending as much?
IMHO, some type of Government spending is better than others. Spending on infrastructure, defense, R&D, STEM education and homeland security is generally better than entitlement spending. Paying people to sit on their a$$ and have more kids is self-defeating.
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.
Government spending is still out of control.
IOW, Obama’s plan is working.
Thanks tobyhill.
I think Paul Krugman just pee in his pants with joy...
This article is a made for talking points for him moonbattery economics...
15 Trillion dollars in debt and Obama is telling jokes as the press laughs????
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.