The Obama Economy

[jake]

GDP growth for 1Q12 was terrible at just 2.2%.  Economists had reduced forecasts all the way down to 2.5%, but the Obama economy could not even muster that.

[berwynson]

GDP growth for 1Q12 was terrible at just 2.2%.  Economists had reduced forecasts all the way down to 2.5%, but the Obama economy could not even muster that.

Imagine! And, currently, we have witnessed firsthand the nearly frenzied buying of residential property here in the Bullhead City (AZ)/Laughlin (NV) area. We looked at a nice house for sale on a Friday; over the weekend no less than 7 offers had been made on it, this despite the fact that single-family residence vacancy rate here is currently around 12%! Perhaps the traditionally over-built, over-speculated areas "pick up" quicker, just to corroborate their previous past history? Will Vegas be next?   berwynson

[markberwyn]

Why can't we have the 5 percent GDP growth rate the U.S. had at the end of the "Bush economy"? Terrible!

[markberwyn]

I think it was 5 percent growth at the end of the Bush economy. Somebody should look it up.

[markberwyn]

Can you imagine the amazing growth rate we would have under a McCain economy? Things would be different for so many reasons!

[markberwyn]

I'm sure economists know what those reasons are. They're just not saying.

[Ted]

GDP growth for 1Q12 was terrible at just 2.2%.  Economists had reduced forecasts all the way down to 2.5%, but the Obama economy could not even muster that.

It's much better than the GDP in some countries in Europe, several of which are experiencing negative GDP. 

  Given the fact that we were going through the worst economic times since the depression at the end of the Bush term, 2.2% GDP looks good to me, especially with what's going on in Europe.

And, do you really think people are going to get up in arms over 3 tenths of a percent?  Seriously?

  Only Obama haters and Fox Noise care that much about three tenths of a percent.

[markberwyn]

(This space reserved for the PhotoShop image I'm working on of a bald eagle with a tear running down one eye reading a newspaper with the headline, "GDP Increases.")

[jake]

It is not the size of the miss, it was that expectations were extremely low (and recently lowered) at just 2.5%, and even that was missed with the 2.2%...and then there is inflation.  Nominal GDP is bad; REAL GDP is worse.

And, Ted, you know that when you come out of the "worst economic times" you traditionally get a massive bounce in GDP with a recovery.  With Obamanomics we never experienced that. 

Now we are slowing again.

[Ted]

We live in different times with a more global economy.  The lead weight of Europe affects America's economic recovery.

I'm surprised GDP even grew by over 2%, given what is going on over in Europe.

[markberwyn]

Terrible Obamanomics! With its terrible Obamanomicky things that nobody has ever tried before!

[markberwyn]

What do you think is the most terrible Obamanomicky thing? It's been a rough ride since the 10 percent GDP growth at the end of the Bush economy.

[markberwyn]

Just guessing about the 10 percent. Somebody should look that up,

[jake]

We live in different times with a more global economy.  The lead weight of Europe affects America's economic recovery.

I'm surprised GDP even grew by over 2%, given what is going on over in Europe.

Ted,

So Obama's budget projections are absolute crap then?  If that is the case, let's hope President Obama finally takes a serious look at budgets and deficits.  Reversing the Obama tax cuts on the $250K earners and the Buffett rule aren't going to scrape the surface of the problems that a 2.2% GDP imply.

[markberwyn]

Does GDP growth mean there's going to be a double-dip recession? I remember reading on Berwyn Talk Forum that there was going to be a double dip recession. Maybe GDP isn't tied to recessions.

[markberwyn]

If only the person who said we were on the verge of a double dip recession last year would step up and explain!

[Ted]

Last weekend, CNN had a program on the world economy.  Several economists said that what America (under Obama) did right and what several European countries did wrong was to spend during the depression rather than try to balance the budgets.

  The tea partiers were wrong.  The best thing Obama did was let the government spend money to get out of the Bush depression and not try to balance the budget.  Europe is suffering because they did the opposite.

  Europe made the same mistake that Roosevelt made during the depression and now Europe is paying for it.

[jake]

Last weekend, CNN had a program on the world economy.  Several economists said that what America (under Obama) did right and what several European countries did wrong was to spend during the depression rather than try to balance the budgets.

  The tea partiers were wrong.  The best thing Obama did was let the government spend money to get out of the Bush depression and not try to balance the budget.  Europe is suffering because they did the opposite.

  Europe made the same mistake that Roosevelt made during the depression and now Europe is paying for it.

What another European country, Germany, did was implement austerity, and now it has a solid economy.  [I know you Greeks did something else over there...that did not turn out so well now did it?.]

The US recession ended a few years ago.  And now we are stuck with slowing GDP growth at just 2.2% while inflation is killing the lower and middles classes, the elderly are stuck with no yield in fixed income investments. 

The Obama budget (which Dems refuse to vote on) assumes higher GDP growth and continues to create deficits even with his taxes on the $250K earners.  So now that we see those higher GDP assumptions are not going to happen under Obamanomics, Obama needs to address what is going to be even greater deficits and debt. 

That means lower spending and/or higher taxes on the middle class.  Those are the facts.

[Ted]

  Germany's economy contracted by .25% in Q4 of 2011.  It did not expand. Total GDP in Germany is expected to be up by only .6% for 2011, down from previous estimates of 1%.

Q3 Eurozone GDP was up by only .1%, down from the previous estimates of .2%.

  That makes America's GDP increase of over 2% look pretty good.

  The economists on the CNN program pointed to the austerity programs in Germany and England as why Europe is going in the wrong direction. By not spending money and by trying to balance their budgets, they made the Eurozone economy go downhill.  Germany represents 25% of the Eurozone economy

  As I said, the powers in Europe made the same mistake as Roosevelt in the Great Depression. Obama did the right thing.

  btw, Greece is not the only Eurozone country with negative economic news. Italy, Spain, Portugal and Ireland are also going through tough times. The UK and even France are feeling the pain.

  What Obama should do is ask the same question that Reagan asked in 1980 - Are you better off now than you were 4 years ago?

  I think most people in this country will answer yes.

[jake]

What Obama should do is ask the same question that Reagan asked in 1980 - Are you better off now than you were 4 years ago?

I think most people in this country will answer yes.

Uh, commodity prices are up so I pay more in gas, my house is worth less, many friends and family are still unemployed, my savings are earning nothing which forces me to invest into risky assets to get any return, very few people I know are getting pay raises, while interest rates are low (see comment on savings earning nothing) it is still very tough to refi a house because the price continues to decline, property taxes are increasing...

And then there is THE DEBT.

Who are you kidding that anybody would answer "yes."