July 31, 2013

GDP Report: Obama Tax, Spend Policy is Failing

The economy grew at an annualized rate of 1.7 percent in the second quarter of 2013. This comes after subpar real GDP growth of 2.5 percent, 1.8 percent, and 2.8 percent in 2010, 2011, and 2012, respectively. Growth in the first quarter of 2013 was 1.1 percent, revised down from 1.8 percent.

Today’s release includes revisions of GDP data going back to 1929, intended to more accurately measure GDP. The new revisions show that in the middle of President Obama’s “recovery” the economy actually shrank by an annualized 1.3 percent in the first quarter of 2011.

Yesterday President Obama offered his solution to the economy’s problems: higher taxes on corporations and more stimulus spending on government-directed “jobs” programs. So the President’s plan for job growth is to raise taxes on corporations that employ people? Then the government will use that money to direct resources to hiring and training in certain sectors? This kind of economic micromanaging has kept our economy limping along since the recession ended four years ago. If he had followed the Reagan model of low taxes and fostering an environment conducive to private sector job growth, the U.S. recovery would be far better today:

Reagan Recovery vs. Obama “Recovery”

Issue Tag: Economy