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Thursday, April 28, 2016

0.5% GDP Stagnation

The figures from the government for the growth of the US economy in the first quarter of 2016 are out.  The ANNUAL growth rate during that three months was 0.5%.  It's a terrible result; there cannot be an alternate view.

Before all the spin begins to tell us that this is the new normal or something good, remember that the average growth rate for the last 50 years before Obama was about 3.5%.  Those 50 years included some bad recessions, so during the times the economy grew, it was growing much faster than 3.5% annually.  The stagnant Obama economy has been seeing the growth rate slow and slow.  The last quarter of 2015 had a growth rate of 1.4% and we were told that it was an aberration which would reverse itself in the first quarter this year.  Instead of a reversal and a return to growth, we got even slower growth.

America needs to change economic policies.  We've had Obama and the Democrats in place for seven plus years and we have no growth.  Obama and Hillary will surely blame the slow growth on Bush, but after all these years, those excuses are ridiculous.  Obama had done this with his anti-business policies, and Hillary says she wants more of the same.  Their way to improve income equality is to make everyone poor.  If America is to remain strong and vibrant, we have to change course.

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