Rich Welsh| In the first quarter of 2022, the US economy shrank, which surprised economists, reviving concerns that a recession is on its way and at a time when we have high inflation.
It doesn’t have to be this way, but it seems like the Biden administration is doing everything in its power to make it this way. It’s either incompetence or it’s being done on purpose and I don’t think there is an option 3.
Gross domestic product (GDP), which measures all the goods and services that make up our economy, has decreased at an annual rate of 1.4% during the first three months of the year, according to Thursday’s release of data from the Bureau of Economic Analysis.
So, instead of Build Back Better, the Agenda 21‘s Great Reset catch phrase is a real dud as the negative numbers are discouraging after following a 6.9% GDP increase after the last quarter of 2021. This pattern is normal as the Biden administration in 2021 was still enjoying the fruits of the Trump administration‘s labors. It takes about a year for the effects of new policies to be realized and boy are they ever being realized.
“The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased,” the BEA report revealed.
The biggest hit to GDP that removed 3.2% from overall economic growth was a record-high trade deficit. Imports of good and services rose while exports of goods and services sharply fell. This means that people are still consuming but on goods that were purchased overseas. The increase in foreign imports could be explained because of the incompetence of the Biden administration struggling to get a handle on the supply chain disruptions last year.
The Democratic Party led us into oblivion by pandemic restrictions and disruptions in many parts of the country by their exploitation of COVID for power and control, on top of government spending on COVID assistance programs decreasing. According to the bureau, that’s what contributed to the GDP decrease.
Now for the good news.
Business investment went up 9.2%…
Staff