The Obama Malaise: GDP Downgraded

Last week, 2013’s fourth quarter growth was sharply downgraded from the first estimate of 3.2 percent to a more disappointing 2.4 percent. Real GDP in 2013 is now estimated to be just 1.9 percent. This year is off to a rocky start with indicators pointing to 2014 first quarter growth worse than last quarter. President Obama’s economic stewardship has gotten worse, and his growth record shows that the government cannot regulate, tax, and spend its way to prosperity.

Obama's Economic Growth Disappoints

Source: Bureau of Economic Analysis

Looking back over the past five years of data, President Obama has had a record of mediocre growth. Three percent should be a minimum for quarterly growth following such a deep recession, yet the Obama presidency has seldom reached even that level. In fact, President Obama has presided over fewer total quarters with at least three percent growth than any President (except Gerald Ford) since quarterly data has been reported.

Presidents Ford and Obama both have seen six quarters of inflation-adjusted GDP growth at or greater than three percent, even though President Ford served in that office for less than 2.5 years. Over five years, President Obama even trails one-term Jimmy Carter in this category. If President Carter thought that America was experiencing malaise under his economic leadership, then what is the word to describe President Obama’s failure?

The Obama Malaise? Obama's high-growth quarters lags behind even Carter

Number of quarters* with real GDP growth of at least 3%

Source: Bureau of Economic Analysis

President Obama’s latest budget should have done better. America needs leadership from the White House and a budget that fosters economic growth, not just higher taxes and more government spending.