New Gross Domestic Product numbers were released today. The “advance” estimate for Q2 2018 is growth of 4.1%. The number for Q1 was revised from 2.0% growth to 2.2% growth.
All sounds good, right?
Well, it turns out that increases in Federal deficit spending are a major element driving the growth in the numbers. The BEA is at least honest, although the truth is buried toward the end of the press release.
Further, adjusting for inflation, there’s still no way to reach the promised target of 3% growth in the economy on which the tax revision in January depended.
Inflation isn’t growth. For most people, it means loss in value of savings and costs increasing faster than paychecks.
The budget is out of balance, and the next targets for the GOP to correct the deficit are cuts in Social Security and Medicare. Yes, you paid through payroll withholding for those programs through years of work. Now the GOP wants to take that money to pay for the tax cuts it enacted for the wealthy.