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All Of The News Media Agree: – 2.9% GDP Not Bad News

From the uber lefty Vox Media:

5 reasons why the shrinking GDP isn’t a reason to panic

By Danielle Kurtzleben | June 25, 2014

The US GDP fell at an annual rate of 2.9 percent in the first quarter, its slowest rate of growth since 2009, in the middle of the recession. And yet no one seems to mind. Stock markets didn’t plummet, and no one is forecasting yet another recession. A shrinking GDP is never great news, of course, but here are a few reasons why economists and markets are shaking off the biggest economic contraction in more than five years.

1) The job market looks OK. Broadly speaking, the job market isn’t growing as fast as we’d like it, but it didn’t seem to pull back in the first quarter…

2) A lot of it was weather. Weather accounted for somewhere between 50 and 100 percent of the GDP pullback… When polar vortexes and multiple feet of snow keep people stuck at home, they just can’t get out to buy groceries or see the doctor…

Yep, people stop eating when its cold. (And how does either buying groceries or seeing a doctor increase the Gross Domestic Product?)

3) Healthcare is still doing fine… [H]ealthcare jobs didn’t take a beating in the first quarter, despite the fact that healthcare growth pulled back far more than anyone had expected. If healthcare spending is falling, that could be a very good sign…

Does anyone really believe that healthcare spending is falling?

4) Inventories fell by a lot. That’s temporary. Inventories … were down in the first quarter, pulling back GDP growth by 1.7 percentage points…

Because of the bad weather?

5) The future looks bright… [T]his downturn looks temporary. Some economists foresee an annual rate of growth of 3.5 or even 4 percent in the second quarter.
What is a good rate of GDP growth?

[I]t’s important to understand that the GDP growth rate can bounce around a lot from quarter to quarter…

Remember when the MSM used to trot out these kind of excuses during the Bush years? We don’t either.

But this spin from the lefties at Vox isn’t unique. Here are some other headlines from the mainstream media yesterday:

Yahoo! News: We Just Got A Horrible GDP Report, And Here’s Why You Shouldn’t Care
CNN: 3 reasons not to freak out about -2.9% GDP
Reuters: U.S. economy collapses in first quarter, but growing again

It was ever thus. (Except when there is a Republican in the White House.)

This article was posted by Steve Gilbert on Thursday, June 26th, 2014. Comments are currently closed.

2 Responses to “All Of The News Media Agree: – 2.9% GDP Not Bad News”

  1. mr_bill

    The MSM spin on the collapse of GDP in Q1 is equivalent to the old quote, “Other than that, Mrs. Lincoln, how was the play?”

  2. Rusty Shackleford

    Wow, my bullsh*t meter just exploded.


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