COMMENTARY | The Bureau of Economic Analysis issued a news release today announcing a projected 2.2 percent growth in Gross Domestic Product, down from 3 percent in the fourth quarter of 2011.
Much of this is based on new car sales, with new computer sales secondary. This information is telling of the impact of President Barack Obama's failed policies (or successful policies, if you're one who wishes to fundamentally transform America). Those who can afford new cars are buying them and the rest of us are struggling to keep gas in the car and food on the table. This must be the two Americas John Edwards told us about.
The release shows, "The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.4 percent in the first quarter, compared with an increase of 1.1 percent in the fourth." In short, the price citizens pay for everyday necessities has increased by a greater percentage than the GDP. This comes as no surprise to those of us in the middle class who are going broke trying to live under the reign of the "Warrior of the middle class."
"Real personal consumption expenditures increased 2.9 percent in the first quarter," the release continues. Durable goods (appliances, automobiles) increased in price by 15.3 percent, nondurable goods (food, gas) increased 2.1 percent and services increased 1.2 percent.
While personal income increased by $14.3 billion, taxes have increased $17.5 billion over fourth-quarter numbers, while disposable personal income decreased by $3.2 billion.
While there are many more statistics that show the havoc the Obama administration is wreaking on the economy, it makes for very dry reading. The point has already been made and reiterated.
Looking at the bigger picture, we are facing more loss than gain. This anemic gain does little to counter the Carter era inflation we are staring down.
Confounding the situation further is the crony kickbacks to Obama donors such as Solyndra and the multiple other now-defunct or failing unreliable energy companies and the obstruction of proven energy sources such as oil and coal. This obstruction comes at a great cost to the poor and middle class who are falling behind due to the resulting rise in costs.
Of course, this is of no concern to a multimillionaire like Obama, especially since we are buying his gas too.