GDP today dropped. Dropped huge.
Keynesians and Obama supporters will say that it’s because there is a drop in government spending combined with Hurricane Sandy. Bullshit.
It’s the policy stupid.
In the last quarter GDP was up 3.1%. This quarter it was down .1%. In economic terms, that’s a massive drop. Usually these things move by tenths of a percent. You can’t buy growth.
Keynesians will look for silver linings but really what they will advocate for is more stimulus, no sequester, continued zero interest rates, and will use fuzzy math and funky economics to try and make this look better than it was. The reality is the economic policies put forth in the last four years stink. The Keynesians are wrong.
And we haven’t even seen what Obamacare and the recent tax increases will do to the economy.