Although the Associated Press reports that "the drop in gross domestic product wasn’t as bleak as it looked" (it "was mainly the result of ... [g]overnment spending cuts and slower inventory growth, which can be volatile" [my emphasis]), we should brace for much more of this kind of overreactive, counterfactual wisdom, from National Journal's Ron Fournier, formerly of the Associated Press:
"An economic recovery has begun," Obama said in his inaugural address. "America’s possibilities are limitless...."
Well, no they’re not--at least not until we get our fiscal house in order.
... which wrongly implies that the federal deficit and national debt are the economy's chief drags. This anti-Keynesian obscurantism just never seems to die its long-overdue and deserved death.
Krugman is so right: Washington's "Very Serious People" are easily among either the least knowledgeable or the most disingenuous.
Unfortunately, I'm not hearing anything from the president or anyone else in D.C. about job creation these days. It's all about the budget, and yes this time it is both sides at fault.
Posted by: AnneJ | January 30, 2013 at 10:14 AM
I (and my business friends)continually conduct a very of scientific survey of asking all our business acquaintances, "So what do you think this year looks like?" Given the effects of "six degrees of seperation" , it can be amazingly informative to compare notes with people who have compared noted with people who have ...
As of a couple years ago, everyone was looking for the cloud that had to be attached to every silver lining. Last year was a mix. This year everyone looks to find the good news in every report of bad news.
This is good news for speculative investments and hiring.
Still, very unscientific.
Posted by: Robert Lipscomb | January 30, 2013 at 10:30 AM
The austerity will continue until morale improves.
Posted by: Bulworth | January 30, 2013 at 12:53 PM