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US Economy Shrinks

GDP

While the Middle East burns, Russian power grows and China flexes its muscles, Obama’s domestic policies prove just as disastrous domestically as it does abroad. Higher taxes, a failed Obamacare program, increasing national debt and an unfriendly business environment have made the inevitable occur. The gross domestic product fell by 2.9 percent this first quarter as reported by the Commerce Department.

Though many in the government seem surprised by this number or even absurdly blame the weather for it, the facts show that consumer spending on goods, business outlays on equipment and housing investment were much lower than expected. Also, exports in the period fell by nearly 10%.

Economics say that in order for there to be a healthy economy and rise in GDP, consumer spending must grow at least 3% annually. However, they also point out that the high number of unemployed and underemployed Americans along with stagnant US incomes makes any growth difficult. Also, as Americans are burdened by higher taxes and a rise in the cost of living, the chance that spending will increase continues to diminish.

Unfortunately, this constriction of the US economy is a direct result of Obama’s failed policies. Higher taxes rates, greater government interference and more restrictive laws make the creation and growth of businesses in this country more difficult. As a result, both foreign and domestic investors are increasingly looking abroad for places to invest their money.

Can we survive a second Obama term?