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This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.

Wednesday, December 11, 2013

The dark lining to the silver cloud of Obamanomics -- By Donald Lambro, The Washington Times

Growth spikes are little more than trend-free anomalies 
 
The government's latest reports that the economy grew at a 3.6 percent annual rate in the third quarter and created 203,000 new jobs last month left out a lot of caveats.

Moreover, the network news media's hyperbolic reports that the economy was surging at full throttle, and that the job market was strengthening, needs to be taken with a large grain of salt, too.

The truth is that the economic-growth rate isn't what it's cracked up to be, and the employment figures contained a large number of "part-time" holes.

The Commerce Department's surprising report that the gross domestic product (GDP) expanded by 3.6 percent between July and September was much more the result of a backlog in unsold business inventories caused by weak consumer demand than of a growing economy. The Obama administration crowed that the GDP figure showed the economy was in full recovery, but economists saw many weaknesses beneath the figures.

"With third-quarter GDP growth at 3.6 percent, businesses should be adding more jobs, but much of that growth was from additions to business inventories as consumers remain tightfisted and goods stay on the shelves," wrote University of Maryland business economist Peter Morici.

The bone-hard economic reality behind this percentage is that "overall consumer demand contributed about 1 percentage point to growth, whereas inventories accounted for 1.7 percent," Mr. Morici explained.
Indeed, The Washington Post reported Friday that the third-quarter pace "is unlikely to be sustained through the end of the year."

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