The administration is blaming this unexpected downturn on something far more sinister than declining exports, decreasing private inventory investment, or previous Republican presidents. They are blaming the polar vortex from last winter.
Charles Krauthammer told the panel on Fox News’ “Special Report” that, “The administration can come up with all the excuses it wants. In the first term, the administration would blame everything on Bush, now it’s on climate…This is obviously a result of an administration’s five years of policy which are high taxation, high regulation, high spending, and high debt.”
Originally, the first quarter of 2014 (Q1) real gross domestic product (GDP) was reported as growing at 0.1%, which is nothing to brag about. Then the Q1 report was revised by the Bureau of Economic Analysis (BEA) in May to show the U.S. economy actually declined by 1.0%. Now, a third revision has been released this week that shows U.S. GDP dropped 2.9%, down sharply from the previous estimate. That’s nearly 3%, which makes Q1 the U.S. economy’s worst quarter in three years. This third estimate for Q1-2014 by BEA reports that the increase in personal consumption expenditures (PCE) was smaller than previously estimated.
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