Friday, May 28, 2010

Shhh: GDP Revised Down


Hey, buddy.

Over here.

Let you in on a little secret, pal, something the Obama-worshiping MSM does not want you to know.
Corporate profits grew at a slower pace in the first quarter and overall economic growth was less than originally thought, as the U.S. continues to slog through a bumpy recovery.

U.S. corporations saw profits before tax and with inventory and capital adjustments rise 5.5% in the first quarter, slower than the 8% growth notched in the fourth quarter, the Commerce Department reported Thursday. First-quarter earnings grew 31% from the same period a year ago, the agency said.

The quarter-on-quarter profit slowdown was mainly due to slower sales growth in the first quarter and the fact that companies' profit margins didn't grow as much as they did in the fourth quarter.

The Commerce Department report also showed that gross domestic product, the sum of goods and services produced in the U.S., expanded at a 3% annual rate in the first quarter, lower than the government's earlier 3.2% estimate. Consumer and business spending were lower than previously estimated, while imports, which subtract from growth, were greater.
At this point we should be seeing growth in the 8% to 10% range if the economy were truly bouncing back in a similar fashion to past recessions.

Instead we are slogging along at 3%. Now, while that is better than no growth or even contraction, it sure is not the healthy growth that we should be seeing at this time, coming out of a deep and sustained recession.

So the next time Obama's eager whores in the MSM try to con you that the economy is growing in a healthy manner, you will know that they are lying to you yet again. The out-of-control spending pattern by the Democrats and their outright socialist agenda is turning the formerly magnificent U.S. economy into a basket case.

And every step of the way, the MSM is cheering them on.

Thanks to Glenn Reynolds for the link.

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