« | »

Why Isn’t The Recession Declared Over?

From a strangely un-exultant Reuters:

U.S. economy grows 3.2 pct in Q1

WASHINGTON, April 30 (Reuters) – The U.S. economy grew at a slightly slower-than-expected pace in the first quarter, held back by inventories and exports, but resurgent consumer spending offered evidence of a sustainable recovery, a government report showed on Friday.

Gross domestic product expanded at a 3.2 percent pace, the Commerce Department said in its first estimate — marking three straight quarters of growth as the economy climbs out of the worst recession since the 1930s.

Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, growing at a 3.4 percent rate in the first three months of 2010 after a 5.6 percent growth pace in the fourth quarter.

Despite the slowdown from the prior quarter, details of the report were fairly upbeat, with consumer spending accelerating at a 3.6 percent rate, more than double the 1.6 percent pace in the fourth quarter. The first-quarter rise was the largest since the first quarter of 2007.

Consumer spending, which normally accounts for 70 percent of U.S. economic activity, added 2.55 percentage points to GDP last quarter, the biggest percentage contribution since the fourth quarter of 2006

Notice that, for whatever reason, we now have had three successive quarters of positive Gross Domestic Product growth. So by every traditional measure we are no longer in a recession.

And yet the Obama administration and their lickspittle minions in the news media cannot bring themselves to announce that the recession is over.

We suspect that it is because, if the economy should once again nose dive, they won’t be able to call it the ‘Bush recession.’

And they just can’t face not being able to blame George Bush.

Also, how can Mr. Obama demand more yet taxpayer money for his campaign slush fund his next stimulus package yet another ‘jobs bill’ when the recession is officially over?

That’s not good politics.

This article was posted by Steve on Friday, April 30th, 2010. Comments are currently closed.

6 Responses to “Why Isn’t The Recession Declared Over?”

  1. Mithrandir says:

    Clinton also dragged out a Bush Sr. recession long after it was over.

    As usual, everything has to be marketed at the right time. Come November, if it helps the Democrats, they will cheer and shout that they fix the economy, should it continue to improve, which is the normal ebb and flow of economics no matter who is president. But why bother with those details, when lawyers can fight over blame and credit?

  2. proreason says:

    You are probably correct Steve, but another reason might be that they plan to announce the end of recessions forever in October, just after the 3rd quarter results come in.

    They can guarantee two more positive quarter by sprinkling a few hundred billion more of future generations money into the pockets of their criminal supporters.

    As the fanfare is trumpeted to the heavens, they will point out how “fically responsible” they have been by waiting to make the announcement.

    • Right of the People says:

      Pro,

      The sad thing is you’re right and the “voting public” will be so happy and vote for the dimocraps ignoring all that has gone on for the last two years.

      The only reason they might not do it is that if they do and the economy tanks again (which is a very good possibility) they won’t be able to blame it on Bushitler. But then again, they might anyway, their minions will believe it no matter what.

    • Rusty Shackleford says:

      The real fact is that we’re far from out of the woods. The recession felt round the world is having deeper and more deleterious effects in Yurp right now. Greece is at junk status, which is a bloody shame but perhaps necessary to show just how bad it can get, since the lessons of the early part of the 20th century are “so yesteryear, dude”.

      Ike once said, referring to an uptick in a recession during his presidency, “One swallow doesn’t make a summer”. http://www.presidency.ucsb.edu/ws/index.php?pid=11075

      But, as has been so clearly pointed out, this regime hasn’t that kind of humility or caution.

  3. MinnesotaRush says:

    I have an ingrown toe nail. Bush’s fault! I”m sure of it!

    • proreason says:

      And since Bush caused an ingrown toenails, nobody has a right to complain that Obamy’s death panels will kill millions. That would be hypocrisy.


« Front Page | To Top
« | »