by Francis Menton • Manhattan Contrarian
The government’s latest GDP numbers, through Q2 2015, are now out, and they include some revisions to Q1, as well as other revisions for the period 2012 – 2014. Lenore Hawkins analyzes the numbers at Elle’s Economy, in an article titled “GDP Numbers Keep Getting Worse.” One consequence of the revisions is that Q1 2015 went from a slight decline to a slight increase. But the other revisions to earlier years, particularly 2012 – 2014, had the effect of lowering previously-reported GDP substantially:
In the 138 years from 1870 to 2008, the US economy expanded by about an average of 3% a year. After the revisions to GDP data from 2012-2014, we see that the U.S. economy since the financial crisis has been growing an average of 2.0% a year versus the earlier 2.3%. . . . Most importantly, 2010-2014 was weaker in every quarter except the second and 2015 so far has been the worst yet!
So why doesn’t the U.S. economy just get going like it always did in the past — even as recently as the decade of the 1990s and from 2001 – 2008? Could there be something different about the Obama regime? [Read more...]