Joe Biden was quick to pat himself on the back after the latest numbers from the Bureau of Economic Analysis showed that the U.S. economy grew by 2.9% in the fourth quarter of 2022 and 2.1% for the entire year.
âLast quarter, our economy grew at a 2.9% annual pace â solid growth, even as we continue to bring inflation down,â Biden tweeted. âOur economic plan worked. And it still is.â
But according to the Heritage Foundation, the latest report âshould have alarm bells ringing, not trumpets sounding.â
âThatâs because economic growth is slowing down,â explains research fellow EJ Antoni. âEven the areas which contributed positively to gross domestic product (GDP) are not necessarily signs of prosperity. For example, business investment grew at only 1.4 percent in the fourth quarter, but that was almost entirely inventory growth. Nonresidential investment, a key driver of future economic growth, was up just 0.7 percent.â
âMeanwhile, residential investment fell off a cliff,â Antoni continued, âdropping 26.7 percent as consumers were unable to afford the combination of high home prices, high interest rates and falling real incomes. No wonder homeownership affordability has fallen to the lowest level in that metricâs history.â
There was a gain in net exports, but that was largely a mirage created by a major slowdown in international trade. âImports are simply falling faster than exports, which shows up as an increase in GDP.â
Read Full Article Here…(pjmedia.com)
Home | Caravan to Midnight (zutalk.com)