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You Know Those GDP Numbers from This AM? This Devastating Chart Illustrates Why They’re Not As Good as the Spin

Oct. 26, 2012 10:29am Becket Adams

The U.S. economy expanded at a 2 percent annual rate from July through September, TheBlaze reported this morning.

Unsurprisingly, a few in the media have tried to spin this number, the first in three third-quarter GDP reports, in a positive light. But it a 2 percent increase really something to get excited about?

Well, yes and no. An increase of any amount is always welcome. However, when you take into account the fact that we were repeatedly assured by the White House that massive government spending (i.e. the stimulus) would lead to economic growth, a return of 2 percent for Q3 2012 isn’t very good. In fact, it’s the opposite.

To help you visualize what we’re talking about, here’s a chart from the Senate Budget Committee Republican staff under Ranking Member Jeff Sessions (R-Ala.) illustrating the difference between the economic growth promised by the White House and what we actually got:

From the senator’s office:

Soon after he took office, President Obama’s Office of Management and Budget submitted to Congress his budget, which included projections of future economic growth under the President’s plan. Specifically, OMB projected that annual growth in 2012 would be a robust 4.6%—nearly three full percentage points higher than what the nation is now experiencing … In every successive year, the Administration continued to dramatically overestimate the growth its policies would produce—with its 2009, 2010, and 2011 projections for this year averaging out to 4.1%.

During the first two years of the President’s term—when his party had supermajority control of both chambers of Congress—President Obama was able to enact virtually every legislative item on his agenda. Chief among these were his signature policy proposals: a near trillion-dollar stimulus package, the Dodd-Frank regulation bill, and the $2.6 trillion health care law.

But the Administration’s other lesser-known economic priorities have also been widely implemented.

[...]

To fund this surge in spending, government borrowing has risen by more than $5 trillion since 2009, with gross federal debt now more than $16 trillion.

Unfortunately, this deluge in federal spending and rulemaking has failed to deliver the economic growth that the Administration predicted would result. n fact, independent studies and analyses, including from the Congressional Budget Office, show our huge debt weakens economic growth. Making matters worse and more dangerous, the leaders of the President’s party in the Senate have, in the words of Politico, “defiantly refused to lay out their own vision for how to deal with federal debt and spending” for the past three and a half years.

Follow Becket Adams (@BecketAdams) on Twitter

An earlier version of this story included a quote regarding a White House promise different from the one illustrated in Sen. Sessions’ graph. It has since been removed and this story has been updated.

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Comments (37)

go2gym
Posted on October 28, 2012 at 1:59am
They didn’t really “predict” the growth they said. They just SAID a growth number, knowing they had no real thoughts as to whether it would be accurate or not, or even how to get there. But they couldn’t “predict” too low, people might have asked questions. (no sure which people, since only the media gets interviews with them, and we know the media isn’t asking jack squat)

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I-have-black-immunity
Posted on October 26, 2012 at 6:11pm
Pro Choice unless : Fleabaggers aka Demonrats are the Pro-Choice Party…Unless It Involves Food, School, or Union Membership. I do not belong to any organized political party – I’m a Democrat

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TROONORTH
Posted on October 26, 2012 at 5:28pm
That would be a 2% growth rate after the economy shrank how much since he took over? If the economy is down 15%, it seems to me it has to grow 17% before a growth rate of 2% can be claimed.

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JohnQTaxpayer
Posted on October 26, 2012 at 3:13pm
“And once the seeds of collapse are sewn the system will fall, then the citizens will let you do anything to them, young Barack”

“Anything? Ms. Fox Piven”

“Anything” she says in a cackling voice, “anything”

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enderwiggen
Posted on October 26, 2012 at 2:19pm
Pretty much obvious that the Obama administration has no idea when it comes to economic issues.

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- TSUNAMI_22
  Posted on October 26, 2012 at 2:42pm
  They have no idea, period.
  
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- barber2
  Posted on October 26, 2012 at 3:25pm
  END : That is true of most ” anti-capitalists ” ( wink, wink ) like the Far Left Democrats who now Occupy our White House.
  
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ChrisDiamond
Posted on October 26, 2012 at 1:59pm
I’m absolutely no fan of Mr. Obama, nor of his policies. That being said, the notion promoted by both the right and left seemingly centers around perpetual growth. It seems to me that perpetual growth, at any percentage, is an impossibility. If it continues for great lengths of time, then the mechanics of it’s continuance should be carefully scrutinized to see what forces have manipulated it in a continually upward direction (i.e. stimulus, bailouts, interest rate lowering at the Fed etc), and then create models to see how the ‘growth’ would look without such interventions. Why? Because it clues people in on how the myth is maintained and (hopefully) would make them question what the real cost is of such manipulation. Lower interest rates at the Fed cause booms in lending at lower interest rates, but also lower interest rates paid on savings and deposits, or real capital. Stimulus is simply additional debt, and the money is handed out to the top, which is essentially a transfer of wealth frmo the poor and middle class to the rich. Keynesian economics is a tool by which the average and poor have their pockets kept open by government for the banksters and corporate moguls to reach into. I wish we would give Austrian economics a shot… even for just 12 years, and then have the nation vote on the comparison between the two approaches. I’m sick of being stolen from.

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- chucksue351
  Posted on October 26, 2012 at 2:19pm
  the law of supply and demand simply put will cause a tension between boom and bust, the governmental role in trying to smooth out these bumps cause the corrections to be more severe than they would have been if left un molested
  
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- ripvanwinkle
  Posted on October 26, 2012 at 9:20pm
  perpetual growth may be an impossibility for a given product or service, but your missing the basics of how wealth gets created in the first place. the source of wealth creation is innovation and efficiency introduced into the marketplace. consumers inherently redistributes wealth towards innovation and efficiency, while competition redistributes wealth toward consumers.
  wealth is created in each and every transaction. where transaction price is lower than max value placed by consumer while also higher than cost to deliver by the provider then a little wealth is created for BOTH parties.
  But the government gets a piece of both sides of the transaction via myriad taxes, fees, and regulations. on top of that that government further likes to push the transaction price up or down. when transaction price gets too high or too low relative to consumer value or provider cost, people just walk away from the transaction.
  growth is the aggregate sum of all the transactions.
  the reason were not growing is because too much manipulation of transaction price followed by too much theft of wealth from individual transactions.
  read Thomas Sowell for more info.
  
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thx1138v2
Posted on October 26, 2012 at 1:58pm
All according to plan. The only thing I see that hasn’t yet been completed it the last item in the action plan in the lower left. It is the same plan as that great Progressive, FDR’s plan. It should look really, really familiar by now. Only the names have changed.

http://www.chicagotribune.com/health/sns-pod-1934-cartoon-pic,0,7114709.photo

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Dscriptboy
Posted on October 26, 2012 at 1:37pm
What I cannot understand is how close the race is. Really, why does Obama even have a chance at reelection?

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- turbo
  Posted on October 26, 2012 at 1:46pm
  That’s a rhetorical question, right?
  If not, the answer to your question lies within your question.
  Think about it.
  
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- Mathchopper
  Posted on October 27, 2012 at 8:18am
  Apparently, you believe the polls. O’Bummer has always been 10-15 points behind.
  
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Margyt
Posted on October 26, 2012 at 1:18pm
Some more quantitative easing should fix it. Those of us who have watched end-times prophecy unfold for years are not surprised about the things that are going on. We are somewhat surprised by how fast things are moving and how blatant the lies are. We are somewhat surprised as well about how determinedly rational people are accepting the lies. As much pain as we are feeling now, we haven’t even begun to feel the real impact of what has already gone on. The economy has been artificially propped up to serve the greater agenda of taking the US down as a global force for good. Disrupt the west financially and the east politically and world power is up for grabs with no one able to stand against it. Hitler should have been so clever. So, is there hope? Yes, but only in the arms of Jesus. My heart cries out for people who don’t understand this.

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spfoam1
Posted on October 26, 2012 at 12:44pm
The voters gave this administration 100% control of the government and look where we are. If they had a good plan, or even a clue, the economy would be much better. Now, Obama wants to sell us the same policies that have failed miserably. Supporting this administration is self destructive insanity.

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myptofvu
Posted on October 26, 2012 at 12:01pm
And what’s China plugging along at 6 or 7%…BTW here is something that Trump and Romney dont seem to get. If China increases the value of their Yuan then the Chinese people will be able to afford to buy their own made in china crap and won’t need us anymore. Another thing that will happen is that all Walmart shoppers will be paying more for the same purchases they used to make, sure we will have some of our businesses being able to export more but also Americans will be spending more here at home.

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- ohyan2912
  Posted on October 26, 2012 at 12:16pm
  China has had 7 straight quarters of steady decline from 9.8% to 7.4% growth rate. Not exactly encouraging for the Chinese is it! The truth is things are slowing all over the world. Are you ready?
  
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AJAYW
Posted on October 26, 2012 at 12:00pm
Chart shows obama and his crew are well on their way in bring down the USA

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- PATTY HENRY
  Posted on October 26, 2012 at 2:49pm
  WE, THE PEOPLE, are going to STOP THEM the COMMIE/SOCIALIST/ANTI-AMERICAN/MUSLIM TROJAN HORSE-SHARIA LAW LOVIN’ TRAITORS. :)
  
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Joe_The_Patriot
Posted on October 26, 2012 at 11:38am
How can they possibly spin 1.77% GDP growth in any positive way?? It’s like loosing all your money at a casino and then finding a dime on the ground on your way out , you then take that dime and swap it for 2 nickels… So now instead of a tiny single dime you have 2 larger nickels.. they’re not worth anymore but you feel better about it because you have 2 of something, then you take the nickels and trade em for pennies.. now your really happy cause u have 10 of sometime.. not worth anymore than the single tiny dime but in your mind you have more… this is the liberal progressive mindset…. and that will also be the result of another obama administration, Pennies in you pocket….

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Gary_K
Posted on October 26, 2012 at 10:56am
http://www.shadowstats.com/

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Anonymous T. Irrelevant
Posted on October 26, 2012 at 10:54am
It seems like everyone in the Obama Administration is like moochelle, in her public affairs job for the hospital in Chicago. They aren’t showing up, doing the work, but still getting paid.
If Obama actually even TRIED to make the economy better, he would get a little better numbers than this. He’s not even trying.
The same pattern his whole life, show up, be present, get paid, no matter how the job goes. He wouldn’t last a day in the private sector.

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- barber2
  Posted on October 26, 2012 at 11:07am
  ANONY: Obama’s failure to improve the private sector, and his past Marxist mentoring make it quite obvious what he has planned for America’s capitalist system: a ” fundamental transformation.” WAKE UP, AMERICANS. Barack is America’s Hugo. Our Fidel . Our Karl. NOBAMA 2012 NO DEMOCRATS 2012
  
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- Gonzo
  Posted on October 26, 2012 at 11:09am
  I don’t think improvement in the economy is his goal. “Fairness” is his goal. I think he thought he could win reelection on the strength of his personality with the help of a biased media. Which I think is truly delusional considering his personality. Yet, millions DO love him and he may well win.
  
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- barber2
  Posted on October 26, 2012 at 11:14am
  GONZO: Interesting point. One person’s idea of ” fairness” can be another person’s idea of ” revenge.”
  
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- cessna152
  Posted on October 26, 2012 at 11:31am
  Gonzo,
  
  Our prayer has been “lies will be exposed and people will NO longer believe the lies”. The scary part of what you mention is likeability was how Mousilini, Stalin and more importantly… Adolph Hitler were elected into power. Being blind to the truth is the most dangerous weapon to America. I compare it to a delusional wife married to a child abuser and the wife continually makes excuses in support of her husband’s abuse. Sadly, she only wakes up when the family unit is completely destroyed.
  I am amazed how certain Americans are voluntarily getting in lines for the gas chamber. However, they are dragging us in with them…
  
  Report this comment
- NHwinter
  Posted on October 26, 2012 at 11:58am
  If only the other 50% of Americans could see what the above posts have said so accurately. God, please open the eyes of those so blinded by the lies and glitz of this administration.
  
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- Gonzo
  Posted on October 26, 2012 at 3:03pm
  NHwinter, I say a very similar prayer several times a day.
  
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OutObamaOut
Posted on October 26, 2012 at 10:52am
Just a question, so don’t be jerks… Is this going to affect our credit rating again?

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- JonSigMan
  Posted on October 26, 2012 at 11:44am
  By itself, probably not, but with everything else coming and how things have performed thus far this year, undoubtedly.
  
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- Ducky657
  Posted on October 26, 2012 at 11:56am
  The key here is credit ratings are based on ability to repay and if you added 1/3 more debt in the last four years yet were only making 6% more would it effect your credit rating eventually?
  
  Report this comment
Snowleopard {gallery of cat folks}
Posted on October 26, 2012 at 10:40am
Obama continues the spin, spin, spin for so long I want off this insanity filled amdinistration and work on getting the nation back to normal.

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- Vigilante
  Posted on October 26, 2012 at 11:04am
  The fact, is that Obumer is very happy with these numbers.
  This is exactly what he wants… To destroy our beloved Country.
  He will never tell you what “hope & Change” mean.
  He wants Utopia, and this could only be in heaven.
  As they say: if people were Angels, we wouldn’t need government!!!
  
  Report this comment
RaydocX
Posted on October 26, 2012 at 10:37am
If Bush’s administration had released such doctored numbers as we are seeing for every indicator the press would have been apoplectic.

when the truth of how bad it is hits home, EVERYONE is going to be in trouble… might actually be better if O stays so HE can get the credit he is due, except as long as he’s in office i believe the world would have to be literally on fire before the MSM said anything.

And then the headline would be ‘Gore proved right, global warming in action.’

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Gary_K
Posted on October 26, 2012 at 10:36am
I would suggest that the meek growth in GDP is because of the Govt. not using the real numbers for inflation…the numbers from this admin. are all FAKE.

W are not in a recession, we are in a DEPRESSION !

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- barber2
  Posted on October 26, 2012 at 11:10am
  GARY: WHAT ? Obama would lie ? Obama would put out phony numbers ? You mean the party of “We Are the 99%” and ” that video sparked all of those 9/11 protests and the attack in Benghazi ” would spin the truth ? The man ” who felt the frustration ” of the international anti-capitalist OWS would tell lies ? What ?
  
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