THE BIDEN EFFECT: American GDP Growth In Second Quarter Falls Far Short Of Expectations

Joe Biden has only been president for a little over six months and he is already proving that he is not good for the economy.

Inflation is rising, everything from food to gas costs more, unemployment is still higher than it was under Trump and Democrats are spending like there’s no tomorrow.

The latest bad economic news is that GDP growth failed to meet expectations in the second quarter.

CNBC reports:

U.S. GDP rose 6.5% last quarter, well below expectations

The U.S. economy rose at a disappointing rate in the second quarter, the Commerce Department reported Thursday in a sign that the U.S. has escaped the shackles of the Covid-19 pandemic but still has more work to do.

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Gross domestic product, a measure of all goods and services produced during the April-to-June period, accelerated 6.5% on an annualized basis. That was slightly better than the 6.3% gain in the first quarter, which was revised down narrowly.

While that would have been strong prior to the pandemic, the gain was considerably less than the 8.4% Dow Jones estimate.

Gross private domestic investment fell 3.5% as declines in private inventory and residential investment held back gains. Rising imports and a 5% decline in the rate of federal government spending, despite the ballooning budget deficit, also were factors, the Bureau of Economic Analysis report said.

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The overall increase came thanks to increasing personal expenditures, which rose 11.8% as consumers accounted for 69% of all activity. Nonresidential fixed investment, exports and state and local government spending also helped boost output.

This is not good.

Trump made it look easy, but this is proof that the Democrats just don’t get it.

What is the economy going to look like a year from now?

 

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