August 31, 2010

Weak GDP Does Not Mean 'Weak' Economy

John Tamny, RealClearMarkets

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At present there's quite a lot to criticize President Obama about when it comes to his administration's economic policies. But with regard to last Friday's Gross Domestic Product (GDP) revision which allegedly points to a weakening economy, the anger should center on what a worthless number GDP is, as opposed to Obama's admittedly limited worth as an economic strategist.

One editorial that decried the revised number and the President's surely unfortunate policies noted a big drop in new home sales and weak manufacturing data as symptoms of those policies. It went on to say that during economic recoveries numbers like GDP are supposed to go up. That, of course, would be true if we desired a weaker economy.

A struggling manufacturing sector was cited as evidence of a depressed...

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TAGGED: Manufacturing, housing, Ben Bernanke, Barack Obama, gross domestic product, John Tamny

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