The news is not good for the Biden administration’s promise to “build back better.” With real GDP growth lower than expected and inflation rising, Americans are feeling the pinch. What does this mean for the economy and the Biden administration’s plans moving forward? Your guess is as good as ours.
We have terrible news coming out of Washington, D.C.; in that case normal news, which is sure to have a major impact on every American. The Bureau of Economic Analysis (BEA) just released its advance estimate for the first quarter of 2023, and the results are in. Unfortunately, the news is not good for the Biden administration’s promise to “build back better.” According to the BEA, the U.S. economy is showing significant signs of deceleration, with real GDP increasing at an annual rate of just 1.1 percent in the first quarter of 2023.
While the numbers prove one thing, democrats on PBS continue to pretend Biden-flation isn’t that bad.
The real gross domestic product (GDP) only increased at an annual rate of 1.1 percent, which is significantly lower than the expected 2.0 percent and a considerable slowdown from the fourth quarter of 2022, in which real GDP had increased by 2.6 percent.
The BEA attributes the economic deceleration to a downturn in private inventory investment and a slowdown in nonresidential fixed investment, which were partly offset by an acceleration in consumer spending, an upturn in exports, and a smaller decrease in residential fixed investment, while imports turned up.
However, the BEA’s measure of inflation showed price increases accelerating upwards. In the first quarter of 2023, the price index for gross domestic product increased 3.8 percent, more than the 3.6 percent increase in the fourth quarter of 2022.
The PCE price index, known as the Federal Reserve’s preferred inflation gauge, made an even more dramatic jump, increasing 4.2 percent in the first quarter of 2023 after increasing 3.7 percent at the end of last year.
Economists had estimated that the PCE price index would come in at just 0.5 percent, making this a huge miss. Core PCE inflation, which excludes volatile food and energy prices, also surged to a 4.9 percent increase to kick off 2023 after rising 4.4 percent in the fourth quarter of 2022.
These GDP and PCE numbers are worrying for Americans as they seek relief from rising prices. It’s worth noting that Americans have already taken 24 consecutive months of pay cuts to their real wages due to inflation.
The economy is stagnating, and this is confirmed by Job Creators Network President and CEO Alfredo Ortiz, who noted that the continuation of the slow- or no-growth economy under President Biden is a direct result of bad Democrat policies that make it more difficult for small businesses to operate and expand.
Ortiz also warned that this anemic growth will only get worse if the Biden administration’s agenda of tax hikes, new regulations, and reckless spending is further implemented. Republicans need to block these anti-small business measures; otherwise, the economy will be thrown back into recession.
In conclusion, the recent report by the Bureau of Economic Analysis is a sobering reminder of the state of the U.S. economy. The slowdown in real GDP growth, coupled with rising inflation, paints a grim picture for the future.
The Biden administration must take bold steps to address the root causes of this economic decline, and work towards restoring the confidence of the American people in the economy. Failure to do so will result in further economic hardship for millions of Americans.
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