2014 Q1 GDP skids to 0.1%

posted at 8:41 am on April 30, 2014 by Ed Morrissey

If we expect another pivot from the White House, don’t expect it to be on the economy. The first quarter of 2014 turned into a turkey that barely avoided a decline, with annualized GDP growth coming it at a mere 0.1% in the advance estimate from the Bureau of Economic Analysis:

Real gross domestic product — the output of goods and services produced by labor and property
located in the United States — increased at an annual rate of 0.1 percent in the first quarter (that is, from the fourth quarter of 2013 to the first quarter of 2014), according to the “advance” estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.6 percent.

The Bureau emphasized that the first-quarter advance estimate released today is based on source
data that are incomplete or subject to further revision by the source agency (see the box on page 3 and “Comparisons of Revisions to GDP” on page 5). The “second” estimate for the first quarter, based on more complete data, will be released on May 29, 2014.

The increase in real GDP in the first quarter primarily reflected a positive contribution from
personal consumption expenditures (PCE) that was partly offset by negative contributions from exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased.

There was a bright light of hope — well, not bright, but more of a spot of slightly-brighter murk — in the real final sales numbers. That increased a meager 0.7%, still a bad number, but an indication that some of the problem may have been in inventory management. Even the relatively-good numbers came with a caveat. For instance, current-dollar personal income rose 3.5%, but that came primarily from government benefits, not actual income growth.

This will crowd out the slightly better news from ADP that shows 220,000 private-sector jobs were added to the economy in April. That’s the best number in six months, and it lands above the year-long rolling average for ADP as well. However, ADP usually comes in significantly higher than the BLS report, which is due on Friday. The GDP report is a better indication of whether businesses felt comfortable enough to add jobs, so expect to see a disconnect between ADP and BLS again this month.

The Wall Street Journal, among others, pointed to the harsh winter as one explanation for the steep drop in GDP growth. But the WSJ also notes that the slowdown extended into areas where weather shouldn’t have much of an impact:

The report offered the first official gauge of the economy’s output from January through March, months that were abnormally cold in much of the country. The weather likely slowed consumer spending on goods, which rose at a mere 0.4% pace during the quarter. But households spent more on sevices–including energy to heat their homes and health care–causing total consumer consumption to rise at a 3.0% pace, only slightly below the fourth quarter’s 3.3% rate.

However, business spending on items such as equipment, buildings and intellectual property fell at a 2.1% pace in the first three months of the year. That was the first decline in a year and reversed in part the 5.7% gain the prior period. The slowdown in investment coincided with weaker hiring during the quarter.

U.S. exports fell at a 7.6% pace in the fourth quarter. That was the largest drop since the recession ended. Declining exports show that shaky economies in Europe and Asian are generating weak demand for U.S. goods and services. Imports into the U.S. declined at a 1.4% pace, reflecting weaker consumer demand for foreign goods.

The latest numbers continue a familiar pattern. The nation’s economic recovery, which started in mid-2009, has been marked as much for its choppiness as its slow pace.

That’s because we keep treating economic symptoms rather than stagnation’s causes. We add regulation where we should be eliminating it, we offer short-term incentives that end up subsidizing normal behavior, and our tax and regulatory policies keep capital sidelined. The massive expansion of hiring costs have employers looking to pare down, so consumers have less money to spend and less reason to take their own risks.

Sam Ro at Business Insider sees a glimmer of optimism:

However, personal consumption grew by 3.0%, which was better than the 2.0% expected. This contributed to 2 percentage points of growth in GDP. …

“The deceleration in real GDP growth in the first quarter primarily reflected downturns in exports and in nonresidential fixed investment, a larger decrease in private inventory investment, a deceleration in PCE, and a downturn in state and local government spending that were partly offset by an upturn in federal government spending and a downturn in imports,” said the BEA.

The inventory adjustment cuts both ways. It does mean that the GDP drop may not have been quite as bad as it looks, but it also means that businesses aren’t terribly optimistic about the near future, either.


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I think Obama’s economic sanctions against the USA are working…no?

Watch out Putin…

*blech*

workingclass artist on April 30, 2014 at 8:46 AM

The Federal Reserve will paper over any decline in GDP.

Joseph OHenry on April 30, 2014 at 8:47 AM

“Focused like a laser…”

dpduq on April 30, 2014 at 8:47 AM

“Unexpected”

right2bright on April 30, 2014 at 8:48 AM

“some of the problem may have been in inventory management”

Good one…kind of like blaming it on the weather…next we’ll be blaming it on toe nail fungus…

PatriotRider on April 30, 2014 at 8:48 AM

They need to ban more fossil fuel energy projects to get this thing going…

the_nile on April 30, 2014 at 8:48 AM

Pollsters Warn Democrats Running In Midterm Elections To Avoid Using Word “Recovery”…

http://weaselzippers.us/184390-pollsters-warn-democrats-running-in-midterm-elections-to-avoid-using-word-recovery/

workingclass artist on April 30, 2014 at 8:49 AM

Housing ownership is at it’s lowest level in 20 years…

PatriotRider on April 30, 2014 at 8:50 AM

Another “recovery summer” preparing to get under way.
I’m certain another several hundred pages of federal financial, environmental, business, and personal regulations will propel the American economy forward.

bobthm3 on April 30, 2014 at 8:50 AM

Why recover all at once when you can drag it out for 6 or 7 election cycles and still blame Booosh?

Skipity on April 30, 2014 at 8:50 AM

This will crowd out the slightly better news from ADP that shows 220,000 private-sector jobs were added to the economy in April:

Except that 219,000 of those came from Republican run states, and probably 200,000 of those from Texas…

right2bright on April 30, 2014 at 8:50 AM

The middle class in Canada now make more money than the middle class in the United States…

PatriotRider on April 30, 2014 at 8:52 AM

When is Bush finally going to implement some changes that will help this economy…why it’s Un-American that he has caused so much problems.

If it wasn’t for him and the Koch brothers, everything would be perfect…

right2bright on April 30, 2014 at 8:52 AM

Who cares about the economy? Sterling is a racist. Get with the program, people!

fight like a girl on April 30, 2014 at 8:53 AM

Obama needs to take more vacations in the USA so he can boost the economy…

PatriotRider on April 30, 2014 at 8:54 AM

Maybe Obama should resign and buy the Clippers…

PatriotRider on April 30, 2014 at 8:55 AM

0.1%? Is that even a thing? Don’t you just round 0.1% to 0%?????

I don’t know how much longer we can survive Obama’s idea of economic recovery.

Happy Nomad on April 30, 2014 at 8:55 AM

I’m so sick of this “weather” excuse. Its as if we’ve NEVER EVER had bad weather before, and people aren’t used to participating in the economy because its below freezing.

Defenestratus on April 30, 2014 at 8:56 AM

The Bureau emphasized that the first-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 3 and ”Comparisons of Revisions to GDP” on page 5). The “second” estimate for the first quarter, based on more complete data, will be released on May 29, 2014.

Retrograde motion is still “progress,” right?

Newtie and the Beauty on April 30, 2014 at 8:58 AM

Stagnant economic growth. Sluggish job growth. Exploding government and regulation. Growing gap between rich and poor. Millions of young people moving back home. Weak foreign policy. The creation of thought-crime.

Welcome to the Golden Age of Liberalism.

K. Hobbit on April 30, 2014 at 8:59 AM

Its as if we’ve NEVER EVER had bad weather before, and people aren’t used to participating in the economy because its below freezing.

Defenestratus on April 30, 2014 at 8:56 AM

Why do you think Canadians migrate to the Gulf Coast during the winter? And I’m not talking about geese!

Happy Nomad on April 30, 2014 at 8:59 AM

C’mon, it’s not his fault.

MSM

forheremenaremen on April 30, 2014 at 9:00 AM

BTW, I’m not used to getting the picture of Obama and the giant screw on a Wednesday. That’s more of a Friday kind of thing. Throws my whole week off.

Happy Nomad on April 30, 2014 at 9:02 AM

C’mon, it’s not his fault.

MSM

forheremenaremen on April 30, 2014 at 9:00 AM

Of course not! Criticism of the rat-eared wonder would be racist and we fixed that yesterday!

Happy Nomad on April 30, 2014 at 9:03 AM

Gross domestic product is mildly racist.

rogerb on April 30, 2014 at 9:03 AM

I’m so sick of this “weather” excuse. Its as if we’ve NEVER EVER had bad weather before, and people aren’t used to participating in the economy because its below freezing.

It’s apparently been snowing for six straight years.

And apparently in 1984 it was 85 and partly cloudy for the entire year.

K. Hobbit on April 30, 2014 at 9:03 AM

Why do you think Canadians migrate to the Gulf Coast during the winter? And I’m not talking about geese!

Happy Nomad on April 30, 2014 at 8:59 AM

Well, technically, those would be CANADA geese.

HiJack on April 30, 2014 at 9:05 AM

Obama wants to turn the nations highways into Toll Roads…

“The proposal, contained in a four-year, $302 billion White House transportation bill, would reverse a long-standing federal prohibition on most interstate tolling….”

http://www.washingtonpost.com/local/trafficandcommuting/white-house-opens-door-to-tolls-on-interstate-highways-removing-long-standing-prohibition/2014/04/29/5d2b9f30-cfac-11e3-b812-0c92213941f4_story.html

workingclass artist on April 30, 2014 at 9:06 AM

You’re all a bunch of racists for complaining about the Obama economy…

PatriotRider on April 30, 2014 at 9:06 AM

Great news for the Limousine liberals who control Wall Street… Like it has been for the last 5 years bad news for the “real” economy is great news for their “fake” markets… The worst it is for the “real” economy the better it is for their “fake” markets…

mnjg on April 30, 2014 at 9:07 AM

The Wall Street Journal, among others, pointed to the harsh winter as one explanation for the steep drop in GDP growth.

Total BS… So let us now advocate for Global Warming because warmer weather is going to be great for the economy…

mnjg on April 30, 2014 at 9:10 AM

A couple more items for the funeral pyre that is the start of Wreckovery Summer 5.0 (or is it 6.0; I lost count):

- Nominal GDP grew at an annualized/seasonally-adjusted 1.4%.

- The only real growth areas of GDP were spending on health care, utilities, and personal finance/insurance (all part of personal consumption expenditures on services). Spending on those three items contributed, respectively, +1.10, +0.73 and +0.25 percentage points to the change in real GDP.

Considering PCE spending on all services only contributed +1.96 percentage points and all PCE spending contributed +2.04 percentage points to the change in real GDP, that puts a bit of a different take on Business Insider’s happy spin.

Steve Eggleston on April 30, 2014 at 9:12 AM

After the obligatory revision it will negative. Thanks Obama!

Yellen now has the excuse she needs to walk back from slowly easing out of QE Infinity.

Johnnyreb on April 30, 2014 at 9:13 AM

You gotta break a few eggs … to make an omelette of national misery.

In Oblowhard’s case he is breaking about 310 million eggs … in the USA alone.

Smegley on April 30, 2014 at 9:13 AM

I suppose the only “good” news is this is the advance read. The BEA has 2 more tries to inflate the number.

Steve Eggleston on April 30, 2014 at 9:15 AM

0.1%…does the scale even go any lower than that?

Awesome job, champ.

Bishop on April 30, 2014 at 9:20 AM

I suppose the only “good” news is this is the advance read. The BEA has 2 more tries to inflate the number.

Steve Eggleston on April 30, 2014 at 9:15 AM

The only good news I see is the fact that Jan 20 2017 is only 995 days off. Not as good as it should be but the end is in sight.

Happy Nomad on April 30, 2014 at 9:20 AM

Obama: “I will not rest until ……..”

- Except for golf
- Except for vacations
- Except for WH concerts
- Except for embarrassing international travel
- Except for the NCAA tournament

Oye !!!

jake-the-goose on April 30, 2014 at 9:22 AM

Take a look at employment over the last 20 years in light of which party held a majority (2+ out of 3) of the House, Senate, and Presidency…

1/3/1995 – 1/2/2007: 144 consecutive months of GOP majority
1/3/2007 – 4/30/2014: 88 consecutive months of DEM majority

If DEM majority policies were better than GOP majority policies, then the economy should be better now (after 88 consecutive months of DEM majority) than it was on 1/2/2007 (after 144 consecutive months of GOP majority), right?

During 144 consecutive months of GOP majority, the Employment-Population Ratio averaged 63.3%, and ended slightly above that average at 63.4% in December 2006.

During 88 consecutive months of DEM majority, the Employment-Population Ratio has averaged 59.8%, and has been BELOW that average for all of the last FIVE YEARS.

ITguy on April 30, 2014 at 9:22 AM

During 144 consecutive months of GOP majority, the Employment-Population Ratio averaged 63.3%, and ended slightly above that average at 63.4% in December 2006.

During 88 consecutive months of DEM majority, the Employment-Population Ratio has averaged 59.8%, and has been BELOW that average for all of the last FIVE YEARS.

ITguy on April 30, 2014 at 9:22 AM

Facts are racist, you bigot.

bigmacdaddy on April 30, 2014 at 9:24 AM

Well yeah because there is no commerce in the winter.

What, people are going to buy jackets, coats, mittens, and boots; they’re going to see more movies, visit restaurants and waterparks just to get out of the house; they’re going to buy skiis, snowboards, and sleds; they’re going to visit warmer states on vacation; they will buy shovels and ice melter and scrapers and remote car starters?

And to top it all off, there was 20 feet of snow in EVERY state!

You dumb flyovers need to read a genealogy book sometime because you’re embarrassing yourselves.

Bishop on April 30, 2014 at 9:30 AM

The only good news I see is the fact that Jan 20 2017 is only 995 days off. Not as good as it should be but the end is in sight.

Happy Nomad on April 30, 2014 at 9:20 AM

The Killary era is going to change everything for the better.

Bishop on April 30, 2014 at 9:32 AM

The Killary era is going to change everything for the better.

Bishop on April 30, 2014 at 9:32 AM

I’ve already pulled my money out of my 401K and invested it in a pantsuit manufacturing company.

I stand to make a killing.

bigmacdaddy on April 30, 2014 at 9:35 AM

I’ve already pulled my money out of my 401K and invested it in a pantsuit manufacturing company.

I stand to make a killing.

bigmacdaddy on April 30, 2014 at 9:35 AM

Bad move – new pantsuits don’t have the required amount of crust.

Steve Eggleston on April 30, 2014 at 9:38 AM

0.1%…does the scale even go any lower than that?

Awesome job, champ.

Bishop on April 30, 2014 at 9:20 AM

I goes as negative as it needs to.

tdarrington on April 30, 2014 at 9:39 AM

But will only go as negative as they allow it to .

tdarrington on April 30, 2014 at 9:39 AM

Bad move – new pantsuits don’t have the required amount of crust.

Steve Eggleston on April 30, 2014 at 9:38 AM

Damn. I hadn’t thought of that.

I was thinking about diversifying a bit…you think Supp-hose® would be a good strategy?

bigmacdaddy on April 30, 2014 at 9:42 AM

If DEM majority policies were better than GOP majority policies, then the economy should be better now

It doesn’t take into account the raaaaaaaaaacist country that is intentionally holding the economy back to make a black president look bad.

tdarrington on April 30, 2014 at 9:42 AM

And to top it all off, there was 20 feet of snow in EVERY state!

Bishop on April 30, 2014 at 9:30 AM

I did enjoy skiing on Broward County’s Mt. Trashmore. Quite exciting. Did you know you can skewer up to 3 condo commandos with a properly sharpened pole?

katy the mean old lady on April 30, 2014 at 9:43 AM

This is only the first estimate, with two more to come, and the final estimate will come right in the heat of the midterm election season. Good; the voters should be reminded of the consequences of their votes as they walk into the booth itself.

MTF on April 30, 2014 at 9:45 AM

So, harsh winter weather. Of course.

Why are we trying to curb “global warming” again?

BKeyser on April 30, 2014 at 9:45 AM

I was thinking about diversifying a bit…you think Supp-hose® would be a good strategy?

bigmacdaddy on April 30, 2014 at 9:42 AM

Two words: Spanx.

Fallon on April 30, 2014 at 9:47 AM

Two words: Spanx.

Fallon on April 30, 2014 at 9:47 AM

One word: Crow Bar.

bigmacdaddy on April 30, 2014 at 9:48 AM

I will offer the following as a hypothesis, since I don’t have evidence at the time: if it weren’t for fracking, the first quarter growth would be in the RED.

Steelweaver52 on April 30, 2014 at 9:53 AM

Why are we trying to curb “global warming” again?

BKeyser on April 30, 2014 at 9:45 AM

No no no, Climate Change. Every unusual weather event fits the model of man made climate change. Unless it doesn’t, then it is a local weather event and weather isn’t climate.

tdarrington on April 30, 2014 at 9:55 AM

Just think how bad it would be if not for the weather. All that record cold and snow caused more people to be employed removing snow, repairing frozen water systems, septics, car and towing services, mechanics repairing plow truck, utility workers etc, etc.

Mimzey on April 30, 2014 at 9:56 AM

if it weren’t for fracking, the first quarter growth would be in the RED.

Steelweaver52 on April 30, 2014 at 9:53 AM

The winter was so cold, people stayed ho1me and did alot of fracking, and not enough buying.

tdarrington on April 30, 2014 at 9:58 AM

B..U..S..

..ahhhhhhh, forget it!

The War Planner on April 30, 2014 at 9:58 AM

ho1me

Cat, meet keyboard.

tdarrington on April 30, 2014 at 9:59 AM

Numbers are racist.
Especially non-existent numbers.

builderD on April 30, 2014 at 10:00 AM

Obamanomimcs keeps staggering on. But no worries, the King and Queen haven’t been inconvenienced. Time for another vacation.

GarandFan on April 30, 2014 at 10:05 AM

ZH says that if it wasn’t due to the forced, mandated spending due to Obamacare, Q1 GDP would be negative.

http://www.zerohedge.com/news/2014-04-30/if-it-wasnt-obamacare-q1-gdp-would-be-negative

Defenestratus on April 30, 2014 at 10:08 AM

Mr. Ro apparently does not fully understand the economic concept of production possibility frontiers. As a nation, we can either save part of our economic output and invest it in Capital thereby increasing our productive capacity or we can spend that part of our economic output on immediate consumption. A certain amount of investment in productive capacity is needed to replace outdated or nonfunctional Capital and to keep up with population increases. Under the policies of Obama and the progressives, we are not only allowing, but encouraging, people to consume – welfare programs, ObamaCare, jobless benefits and other “entitlement” programs – more and more of our economic output at the expense of savings and investment. Thus, it should be no surprise that our economic output (GDP) is declining.

In an equilibrium, economic output (GDP) = savings and investments + consumption. If you increase consumption (such as entitlement programs, ObamaCare, jobless benefits, etc.), you can only do so by e decreasing your investments in Capital (your capacity to produce more in the future). However, the cost is that you will be able to produce less in the future. That is the reality of the progressives’ programs.

sixchickensleft on April 30, 2014 at 10:12 AM

0.1%? Is that even a thing? Don’t you just round 0.1% to 0%?????

I don’t know how much longer we can survive Obama’s idea of economic recovery.

Happy Nomad on April 30, 2014 at 8:55 AM

It was probably negative, which would have caused all hell to break loose. So when the best fraudulent number this administration can produce is 0.1%, you know it was really bad.

monalisa on April 30, 2014 at 10:23 AM

Meanwhile the debt cruises steadily toward the round-off to eighteen trillion. Because improvidence never sleeps.

David Blue on April 30, 2014 at 10:28 AM

Meanwhile the debt cruises steadily toward the round-off to eighteen trillion. Because improvidence never sleeps.

David Blue on April 30, 2014 at 10:28 AM

Indeed.

Total Public Debt Outstanding is now more than double what it was when Democrats took majority control on 1/3/2007.

And Debt Held by the Public is now more than two-and-a-half times what it was when Democrats took majority control on 1/3/2007.

Data Source: http://www.treasurydirect.gov/NP/debt/search?startMonth=01&startDay=03&startYear=2007&endMonth=04&endDay=30&endYear=2014

ITguy on April 30, 2014 at 10:39 AM

So the only ‘growth’ is spending driven–how long can that go on, even at such embarrassing rates?

There is no investment, no wealth creation at all.

The next Republican administration, if ever there might be one, should wage ruthless war on Democratic Wall Street. It would kill a false narrative long used against the GOP; plus, WS deserves it.

So of course it will never happen.

bildung on April 30, 2014 at 10:39 AM

But households spent more on sevices–including energy to heat their homes and health care–causing total consumer consumption to rise at a 3.0% pace, only slightly below the fourth quarter’s 3.3% rate.

Hey, I got an idea! Let’s build a pipeline so we can buy lots of cheap oil from Canada! Why not, Mr. President?

U.S. exports fell at a 7.6% pace in the fourth quarter. That was the largest drop since the recession ended. Declining exports show that shaky economies in Europe and Asian are generating weak demand for U.S. goods and services.

Hey, I got an idea! Let’s export natural gas to Europe, just in case Flexible Vlad turns off the gas, or does something rash like invading Ukraine or something. Why not, Mr. President?

Steve Z on April 30, 2014 at 10:45 AM

Steve Eggleston on April 30, 2014 at 9:12 AM

On that 1.1 healthcare PCE…would the increases in deductibles that started at the beginning of the year be included in that category?

lineholder on April 30, 2014 at 10:49 AM

Under any other reasonable economic policy we would be growing at 4-5%. Look at the growth under Reagan after the Carter fiasco, we were growing at 5-7%. The difference couldn’t be more stark.

Ta111 on April 30, 2014 at 10:52 AM

Hey, I got an idea! Let’s export natural gas to Europe, just in case Flexible Vlad turns off the gas, or does something rash like invading Ukraine or something. Why not, Mr. President?

Steve Z on April 30, 2014 at 10:45 AM

I’d rather export it to them value added turned into more expensive things.
Why cause a rise in the price of natural gas for American consumers and businesses?
The Republican platform on energy is American Independence and low prices.
Go ahead and try and change it to cheap exports to Europe and high prices to Americans. Then there will be one less reason for me to vote for a Republican.

astonerii on April 30, 2014 at 10:55 AM

Next month we can all go throw rocks through windows to stimulate the economy. Or dig ditches for the WPA or something.

K. Hobbit on April 30, 2014 at 11:01 AM

Weather? Pffft…Have we not had ‘weather’ every year?? Unexpected?? Perhaps we ought to start ‘expecting’, then. If it weren’t for that damned George W. Bush and all the racist bass turds who refuse to work with Obama because he’s a black man in the White House, and if it weren’t for those damned Christians planting their crosses all over the place, and if it weren’t for those ‘obstructionist’ Republicans, and if it weren’t for all of those homophobic, bigoted, fundy, wing nut, teabagging, red-neck, racist conservatives hating on Obama and his lovely wife, things would be just swell. That about sum it up for ya’, libiots???

bimmcorp on April 30, 2014 at 11:02 AM

Combining a couple of comments for response…

On that 1.1 healthcare PCE…would the increases in deductibles that started at the beginning of the year be included in that category?

lineholder on April 30, 2014 at 10:49 AM

Most certainly. If Tom Blumer is right, the increased out-of-pocket costs of insurance is also part of that.

So the only ‘growth’ is spending driven–how long can that go on, even at such embarrassing rates?

There is no investment, no wealth creation at all.

The next Republican administration, if ever there might be one, should wage ruthless war on Democratic Wall Street. It would kill a false narrative long used against the GOP; plus, WS deserves it.

So of course it will never happen.

bildung on April 30, 2014 at 10:39 AM

It’s worse than that – the “growth” in this quarter is entirely driven by spending on items that can be fairly described as the cost of simply existing (health care and utilities).

Steve Eggleston on April 30, 2014 at 11:05 AM

John Nolte ‏@NolteNC
https://twitter.com/NolteNC/status/461516603998625793

Canada GDP hits 2.5% cuz there’s no winter there, or, uhm…

ITguy on April 30, 2014 at 11:11 AM

Next month we can all go throw rocks through windows to stimulate the economy. Or dig ditches for the WPA or something.

K. Hobbit on April 30, 2014 at 11:01 AM

Krugman has a speak and spell and an umbrella rigged up trying to lure some space aliens in for an attack.

HumpBot Salvation on April 30, 2014 at 11:15 AM

Gosh, it sure is strange that the focus groups don’t like being told we’re in a recovery. I mean, who are you gonna believe? The BLS or your lying paycheck (or lack thereof)?

Skipity on April 29, 2014 at 7:00 PM

Schadenfreude on April 30, 2014 at 11:20 AM

Article from Washington Examiner about healthcare costs for first quarter

Were it not for the rise in health care spending, the economy would have contracted by 1 percent in the quarter, instead of growing at a meager 0.1 percent, according to Ian Shepherdson, the chief economist at Pantheon Macroeconomics, as quoted by Business Insider. The article also quotes a BEA spokesperson as saying the spike in spending, “reflects additional spending associated with the implementation of the Affordable Care Act.”

Also, article on regulatory costs in Obama’s America

U.S. Regulatory Costs Are World’s No. 10 Economy [IBD]
After years of rapid growth during the Obama administration, the cost of federal regulations is now bigger than the entire economies of all but nine countries in the world.

That’s according to the latest annual report on the regulatory state issued by the free-market Competitive Enterprise Institute, titled “Ten Thousand Commandments.”

Compiling reports of compliance costs from various government agencies and outside sources, author Clyde Wayne Crews found that the “regulation tax” imposed on the economy now tops $1.86 trillion.

By comparison, Canada’s entire GDP is $1.82 trillion. India’s is $1.84 trillion. […]

On a per-household basis, federal regulatory costs average $14,974, which is more than the typical household spends on just about anything else

lineholder on April 30, 2014 at 11:29 AM

Steve Eggleston on April 30, 2014 at 11:05 AM

Thanks for responding. I found some other info as well (posted above if you’re interested)

lineholder on April 30, 2014 at 11:34 AM

’ve already pulled my money out of my 401K and invested it in a pantsuit manufacturing company.

I stand to make a killing.

bigmacdaddy on April 30, 2014 at 9:35 AM

I’m not a financial expert but it seems to me everyone should take their money out of whatever you have it in before the marxists sieze it. Do whatever you can to protect your family, your money and your property.

crankyoldlady on April 30, 2014 at 11:42 AM

Data Source: http://www.treasurydirect.gov/NP/debt/search?startMonth=01&startDay=03&startYear=2007&endMonth=04&endDay=30&endYear=2014

ITguy on April 30, 2014 at 10:39 AM

Thanks for that link.

If there’s any precedent for something like this to end well, I don’t know it.

David Blue on April 30, 2014 at 11:47 AM

….Pivot?

KOOLAID2 on April 30, 2014 at 11:55 AM

I can’t believe the economy is chugging along at this pathetic pace. I thought we would all be begging Lord Humongous for a drink of water out here in the badlands by now.

Murphy9 on April 30, 2014 at 11:58 AM

John Nolte ‏@NolteNC
https://twitter.com/NolteNC/status/461516603998625793

Canada GDP hits 2.5% cuz there’s no winter there, or, uhm…

ITguy on April 30, 2014 at 11:11 AM

Don’t know where John got his stats. The government-run Stats Canada has different, and better GDP numbers (real/inflation-and-seasonally-adjusted numbers have been translated into annualized rates of growth to match what the BEA puts out):

- 4Q2013 quarterly expenditure-based GDP growth – +2.9% (this is the equivalent to what the BEA puts out and compares favorably to the US GDP’s +2.6%)
- February 2014 monthly “by-industry” GDP growth – +2.7% (no equivalent from the BEA; highly volatile as evidenced by December 2013′s -4.6% and January 2014′s +5.7%).

Steve Eggleston on April 30, 2014 at 12:13 PM

….Pivot?

KOOLAID2 on April 30, 2014 at 11:55 AM

Or laser-like focus?

Brat on April 30, 2014 at 12:14 PM

0.1% is very close to 0. Hence The 0 Economy. Worst Ever President The US Has Ever Seen. Defend it you miserable 0 supporters. Cowards!

Bmore on April 30, 2014 at 12:16 PM

Thanks for responding. I found some other info as well (posted above if you’re interested)

lineholder on April 30, 2014 at 11:34 AM

Thanks. If Ed/Erika haven’t gotten to the second item by Friday, I just might have to do something on that.

Steve Eggleston on April 30, 2014 at 12:19 PM

Failed ideological economic policies put in place by the Left with an army of bureaucrats armed with thousands of social engineering regulations and people are surprised at the results…?

Seven Percent Solution on April 30, 2014 at 12:29 PM

Yes, but unemployment is 2% or something.

Isn’t it?

formwiz on April 30, 2014 at 12:35 PM

so, adjusting for the economic distortion that is the Washington DC metropolitan area, we’re looking at negative growth.

catsmeow on April 30, 2014 at 12:36 PM

So, when it is revised to -0.1%, will it be the Obama recession or the Second Bush recession?

Tater Salad on April 30, 2014 at 12:38 PM

The fact that you people think that .1% GDP growth is bad is just….racist. There I said it, all intelligent, thoughtful people should be ashamed of themselves.

warmairfan on April 30, 2014 at 12:39 PM

So, when it is revised to -0.1%, will it be the Obama recession or the Second Bush recession?

Tater Salad on April 30, 2014 at 12:38 PM

Neither – as Teh SCOAMT is a Rat, it is unpossible for a recession to happen until at least the first quarter of 2017, even if GDP growth is negative every quarter between now and then.

Steve Eggleston on April 30, 2014 at 12:41 PM

I can’t believe the economy is chugging along at this pathetic pace. I thought we would all be begging Lord Humongous for a drink of water out here in the badlands by now.

Murphy9 on April 30, 2014 at 11:58 AM

Californians are.

Steve Eggleston on April 30, 2014 at 12:45 PM

The weather?

BWAAAAAA-HAHAHAHAHAHAHAHAHAHA

Pelosi Schmelosi on April 30, 2014 at 12:45 PM

BTW, I’m not used to getting the picture of Obama and the giant screw on a Wednesday. That’s more of a Friday kind of thing. Throws my whole week off.

Happy Nomad on April 30, 2014 at 9:02 AM

That’s actually a conveyor system that had to be installed in the White House to move adequate supplies of lobshter into the White House kitchen.

slickwillie2001 on April 30, 2014 at 12:47 PM

Californians are.

Steve Eggleston on April 30, 2014 at 12:45 PM

Touche!

Murphy9 on April 30, 2014 at 12:52 PM

0.1%??? BWAHHAAHAHAHAHHHAHAHAHA!!!!!!!

FORWARD,COMRADES!!!!!!!!!

conservative hispanic on April 30, 2014 at 1:01 PM

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