By Casey Harper (The Middle Sq.)
President Joe Biden defended newly launched underperforming financial development numbers.
Federal knowledge reveals the U.S. Gross Home Product grew at an annual development price of 1.6% within the first three months of this yr, down from 3.4% within the earlier quarter.
The U.S. Bureau of Financial Evaluation launched the information, which got here in effectively under economists’ expectations, raised considerations about the way forward for the financial system this yr, and despatched the inventory market downward Thursday morning.
“The big inventory buildup in the third quarter of last year continues being drawn down, which is reducing GDP – in other words, previous economic ‘growth’ was essentially just a transfer of future positive numbers pulled forward to an earlier time period,” E.J. Antoni, an economist on the Heritage Basis, wrote on X, previously generally known as Twitter, after the information was launched.
After the BEA numbers got here out, President Joe Biden launched an announcement on Thursday calling the financial system “strong.”
“Today’s report shows the American economy remains strong, with continued steady and stable growth,” Biden mentioned.
He went on to level to the financial restoration since COVID-19 period shutdowns killed jobs and financial development.
“The economy has grown more since I took office than at this point in any presidential term in the last 25 years—including 3% growth over the last year—while unemployment has stayed below 4% for more than two years,” Biden mentioned.
Biden then pivoted to attacking companies for his or her charges in addition to Republicans.
“And I have a plan to lower housing costs by building 1 million new homes. Congressional Republicans have no plan to lower costs,” Biden mentioned. “They are fighting to give the wealthy and big corporations more tax cuts while cutting programs like Social Security, Medicare and the Affordable Care Act. They think the best way to grow the economy is from the top down. The American people know we need to build it from the middle out and the bottom up, so the middle class has a fair shot and no one is left behind.”
Former President Donald Trump commented on the GDP numbers Thursday morning to reporters ready exterior of his courtroom look.
“…the GDP just announced is all the way down to 1.6% and it’s heading south,” Trump instructed reporters, as proven on Fox Information. “It’s going to get worse…gasoline is going way up. Energy costs are going way up, and the stock market is in a sense, crashing. This is Bidenomics. It’s catching up with him.”
Notably, BEA knowledge confirmed People’ financial savings accounts diminished within the first three months of this yr.
“Personal saving was $755.7 billion in the first quarter, compared with $815.5 billion in the fourth quarter,” BEA mentioned. “The personal saving rate—personal saving as a percentage of disposable personal income—was 3.6 percent in the first quarter, compared with 4.0 percent in the fourth quarter.”
Syndicated with permission from The Middle Sq..
