Here’s what happened first, along with the new projected growth numbers:
The Nation: The paper the House Budget Committee chairman has used as the
intellectual and statistical underpinning for his austerity agenda has been significantly discredited … Ryan went all in … preaching an economic gospel based on his absolute certainty that when a country’s debt level tops 90 percent of its gross domestic product, it’s economy will decline and crisis will ensue.
When debt levels didn't matter....Remember?
The average growth rate of nations with a 90 per cent debt load does not decline by 0.1 percent … Rather, the growth rate is a positive 2.2 per cent. Reinhart acknowledged to the CBC News business reporting team that “Herndon, Ash and Pollin have written a useful paper, finding a significant mistake in one of our figures.”
Notice below the positive growth rate for the last quarter. How’s that for a fact based economic prediction:
AP: U.S. economic growth accelerated to an annual rate of 2.5 percent from January through March, buoyed by the strongest consumer spending in more than two years. Government spending fell, though, and tax increases (SS increase) and federal budget cuts (sequester) could slow growth later this year. Government spending sank at a 4.1 percent annual rate, led by another deep cut in defense spending. The decline kept last quarter's increase in economic growth below expectations of a 3 percent rate or more.
The forced austerity measures allowed by the Republicans in the sequester will result in a slower growth rate. I’m sure they’ll blame Obama for it because...they just hate Obama.