Three weeks ago MSNBC reported (I have taken the liberty of underlining some the bubbly comments):
U.S. economic growth increased at its fastest in a year in the third quarter as consumers and businesses set aside fears about the recovery and stepped up spending, creating momentum that could carry into the final three months of the year.
Though part of the increase came from the reversal of temporary factors that had restrained growth, the expansion was a welcome relief for an economy that looked on the brink of recession just weeks ago.
It also provided a small respite for President Barack Obama, whose approval rating has plummeted in part because of the weak recovery, from the parade of bad news on the economy. Still, even the White House admitted that faster growth was needed.
It seems that the Huffington Post and Reuters was a bit premature breaking out the bubbly. CNBC reported today:
Gross domestic product grew at a 2.0 percent annual rate in the July-September quarter, the Commerce Department said in its second estimate on Tuesday, down from the previously reported 2.5 percent.
Oops. Looks like we are back “on the brink” again!
Seems that the Obama Administration put a spin on the numbers that could only make Pinocchio seem excited.
These left wing news outlets are so interested in making this Administration appear successful that they never miss an opportunity to hype the initial figures, which are inevitably inflated, be it GDP, unemployment or the latest state du jour.
But the corrections are never mentioned with the same fanfare. If they are mentioned at all it is usually beneath a misleading headline or they try to put lipstick on a pig, as the CNBC story does:
While the revision was below economists’ expectations for a 2.5 percent growth pace, the composition of the GDP report, especially still-firm consumer spending and the first drop in businesses inventories since the fourth quarter of 2009 set the platform for a stronger economic performance this quarter.
Sadly, the Democrats will keep running with the first report right up until the the first correction is released. Then, if they must talk about it, they use the talking points spin to pretend that the really great news, that became mediocre (or bad) news is somehow even better news.
The pattern is repeated over and over. The unemployment rate dips a bit and, despite a net loss of jobs for the month, somehow the fact that the Obama Administration has again significantly shrunk the size of the workforce – as people give up on finding work and settle down into good entitlement Democrats – is not mentioned.
For example, in 2008, the Department of Labor showed that 66% of the people age 16 and over were in the US workforce.
As of last month, the Obama Administration recons that the US workforce has fallen to only 64.2% of the population.
What that means is that in 2008, there were 205,260,000 people in the US workforce, and today there are 199,662,000.
What that means is that Obama has decided that 5,598,000 have dropped out of the workforce since he became president.
Apparently, there are two ways to reduce the unemployment rate in this country. Actually do something to encourage more jobs, like ridding businesses of some of the regulatory burdens that hinder job growth, or simply pretend that the workforce has fewer people.
Unfortunately, the Obama Administration has taken the latter course.
And if we take away the artificially inflated GDP – inflated by “stimulus” spending – then the economy is most likely receding, masked by borrowed (and printed) money.
Or to put it in terms of a family, you can make it appear that your net worth is greater by borrowing against all of your credit cards and depositing that money in the bank, but we all know that is not a true picture of your wealth.
The same is true with the economy. “Stimulus” money will add to the GDP and make it look like America is beginning to recover, but it is not. This is why Obama wants another stimulus.
As he shrinks the size of the workforce to pretend fewer people are unemployed, he is borrowing money to place in the nations bank account, the GDP.
He hopes to point to a shrinking unemployment rate and a growing economy, but both of these numbers are simply accounting tricks.
As the number of workers shrinks, the number of taxpayers also shrinks. The Gross Domestic Product shrinks. And the number of people on government assistance grows. These are facts that cannot be ignored or covered up with smoke and mirrors. It is happening and it continues to get worse, despite the fake numbers we are fed.
The other part of Obama’s “Jobs Creation” plan calls for putting teachers, police and firefighters back to work. In a doubly sweet move, Obama gets to appease unions and create more artificial jobs to pretend the country is beginning to prosper.
It is truly sad that the “mainstream media” in this country has decided to jump into bed with the government. Freedom of the Press was one of the basic rights intentionally included by the nation’s founders. A skeptical press – free to question the running of the government – is an important part of a Republic.
Sadly, a press that is complicit with the government to further an agenda may destroy this country.