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The 2014 Recession?

Breitbart

The Bureau of Economic Analysis released its revised assessment of the first quarter of 2014’s Gross Domestic Product and revised it down to -1%. The initial assessment said the economy had at least grown, but only by .01%.

This is the first time the economy has contracted in over three years. Some in the media, the very same Thought Leaders who had been talking last year about an economic recovery possibly saving Obama and the Democrats in 2014, have attempted to blame the contraction on the weather. No one in the mainstream media seems at all ready to consider ObamaCare, which hit Americans and American business owners just before the the economy began its decline of more than three full points.

 

For those who follow economics, and not just Wall Street, we are about to enter another mini-recession. Primary cause: Private Sector economic activity is shrinking. Government economy growing. Inevitable result: inflation or debt. Or both. Many nations are taking steps to increase their private economies and slow the growth of their governments (Germany, the UK, Australia, India). We’re moving in the opposite direction. Pay attention to Q2. We’ll probably see another flat quarter, if not another .5%-1.5% decrease. There are two outstanding bubbles: College Loans and State & City debt. Both should become serious issues by the end of 2014.

Three serious policy issues are also effecting economic conditions. First, Obamacare has created excessive undue hardships for individuals and businesses. Second, dramatic increase in bureaucratic regulation under President Obama’s “Year of Action” is having real-time costs to private industries and bureaucratic agencies. Third, we are graduating more high school and college graduates into an entry-level economy with fewer positions. This is going to create undue strain as more and more baby-boomers go on more government programs and fewer and fewer new tax-payers are manufactured.

The Corporatist System allows Wall Street a few quarters of safety before it has to deal with the same realities average Americans are dealing with, but its coming to a stock market near you.

About Steven Brodie Tucker

Graduated with a degree in Philosophy from Virginia Polytechnic Institute and State University. Also studied economics and political science at George Mason.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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