Cut defense, shrink the economy?

Straight from that arm of the vast right-wing conspiracy,
US economy shrinks 0.1 pct., first time in 3 ½ years; deep cut in defense spending key factor

And it was unexpected!

Economists said the surprise decrease in the nation’s gross domestic product wasn’t as bad as it looked. The weakness was primarily the result of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.

Looking good!

“Frankly, this is the best-looking contraction in U.S. GDP you’ll ever see,” Paul Ashworth, an economist at Capital Economics, said in a note to clients.

Be happy!


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3 Responses to “Cut defense, shrink the economy?”

  1. Rick Caird Says:

    Hmmm, slower inventory growth means that businesses are not selling as much as before and cut back on orders for inventory. Reduced government spending is unlikely to pick up in Q1 2013. These do not look like one time factors. They look to be long term factors.

  2. Fausta Says:

    And more cuts in the military, plus higher government regulations don’t bode well either, Rick.

  3. IGotBupkis, Legally Defined Cyberbully in All 57 States Says:

    }}} “Frankly, this is the best-looking contraction in U.S. GDP you’ll ever see,” Paul Ashworth, an economist at Capital Economics, said in a note to clients.

    Pay no attention to that man behind the curtain!!