About That GDP Decline…

As has been reported, U. S. gross domestic product declined by .1% in the fourth quarter of 2012. Some of the decline has been dismissed as being a result of decreased defense spending. For some reason I don’t recall the people who are making that particular argument as dismissing third quarter 2012 GDP growth as being a result of increased defense spending.

Probably just a trick of the mind.

7 comments… add one

  • jan

    No, trick of the mind. It is one of the common tricks/traits of the democratic party of “having it both ways,” and getting away with it via an incurious, unquestioning press and a fawning base.

  • jan

    Today is the 100th birthday of the ratification of the 16th Amendment.

    Obama is lighting the candles on the cake and smiling…..

  • jan

    I remember reading an article written by George McGovern after a failed attempt to run a B&B. The jest of it was how blind sighted he had been to all the regulations and red tape involved in running a business. He admitted that had he attempted such a venture before his political life, he would have had a different philosophy when voting for some of the regulatory legislation put before him.

    Today, there is a similar reflection in this article, posted by left of center Slate writer, Matt Yglesias, when ruminating about the hassle of starting his own small business. This is the very reason why having leaders, who’ve never experienced the real world of business, oftentimes turn out economic policies that are disastrous for running a business.

  • steve

    As I have said over and over, we need to deregulate, make it easier, for small businesses to work and succeed. Yglesias also notes what I see all the time. The most difficult, time consuming laws to deal with are local ones. State rules are the second worst. Federal rules the easiest. Maybe that is unique to medicine or my specialty, but I get similar complaints from other people running businesses. (Commiseration bias?)

    But on topic, I remember the discussions at the time. Yes, defense spending increased, but w/o the increase you still had a 1.4% increase. It is, has been and will be a slow recovery for a long time.

    Steve

  • Drew

    “Yes, defense spending increased, but w/o the increase you still had a 1.4% increase. It is, has been and will be a slow recovery for a long time.”

    Yes, but that is just a rationalization for underperformance. It also makes the obvious point. If you are waiting on government spending, you will be waiting along time.

    BTW – as a long time business owner, I’d say local regulation tends more to graft and the need to grease wheels, national to zealots.

  • steve

    @Drew- What about state? On any given day, I find the state to be worst. They have the most detailed, fussy regs. JCAHO, now the Joint Commission creates its own special kind of havoc.

    Steve

  • sam

    “What about state? On any given day, I find the state to be worst. They have the most detailed, fussy regs..”

    leviathan.

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