The U.S. economy shrank from October through December for the first time since the recession ended.We are looking at the net effect of Obama’s Voodo-Economics. Yes, the US economy was hit by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles. The decline occurred despite faster growth in consumer spending and business investment. Government still has not figured out that in the real world, people respond in anticipation.
All our indicators have been pointing to STAGFLATION as the COSTS rise but the DEMAND is reduced. Raising taxes as drastic as has taken place with payroll (including Obamacare) has increased the cost of labor in the USA by about 10% at one clip. It would be nice if they made real world economics MANDATORY to get a law degree, for way too many lawyers take up office and they may know how to write laws, but are clueless about how people react economically.
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