GDP Shrinks; Keynesians Say More Stimulus?Submitted by McWilly on Wed, 01/30/2013 - 15:55
The most recent economic data that has come out shows that the GDP for the United States has shrunk by .1%, shocking many economists who had predicted a slow growth moving into 2013. Why they predicted this, we shall never know, as it would have seemed quite apparent that the factors leading into this year were stacked against the economy.
Not only has Obamacare’s mandate for workplaces to provide coverage for full-time employees caused some businesses to alter their employment models, but additionally Obama allowed the Bush-era tax cuts to expire, increasing the tax burden on the middle class by 2%. This has had a huge impact on families and individuals that should have been foreseen.
During a period of increased costs for food products and gasoline, a tax hike was beyond foolish and has caused Americans to tighten their belts even more than they had previously. The FED’s money printing has already caused existing savings and wages to drop in value, trailing the marketplace adjustment and upping the cost of living, as it always does. Corporations and Businesses saw this coming, and lowered their orders for stockpiles of goods or cut back on manufacturing, which impacts GDP. If it was so clear to business, why was this a shock to our government?
In spite of this, Keynesians are already calling for another round of economic stimulus. The never-ending cycle of Keynesian economics continues! Continue Reading