Elmore: The Economy is Not Resilient—it’s on a Government-Fueled Sugar-High
by Amp America | Apr 16, 2024 | Opinion
By Daniel Elmore
Late last month, the Bureau of Economic Analysis revealed their final revision for gross domestic product in 2023, coming above expectations. Yet, while federal officials celebrate the “resilient economy,” the numbers show an alarming trend.
With a $189 billion expansion over the final three months of the year, the most recent GDP figures initially suggest a favorable economic outlook, potentially averting a recession. However, this apparent growth was primarily stimulated by government expenditures and transfers, which, in turn, rely on deficits. Upon closer inspection, it becomes apparent that this expansion was largely sustained by a $834 billion increase in federal debt during the same period.
Unfortunately, such reckless spending will likely persist in Washington, preventing a recession in the short term until it inevitably leads to a crisis when the bills must be paid.
This comes as Congress passed a $1.2 trillion omnibus spending bill to fund more than half of the government until September 30th, the end of the federal government’s fiscal year. Exceeding well over 1,000 pages, the legislation also funds a number of contentious initiatives such as the establishment of the National Extreme Risk Protection Order (ERPO) Resource Center to help state and local governments “optimize” the use of red flag gun laws, as well as funding allocations for activist groups and earmarked pork projects.
While politicians bickered over the budget, the national debt surpassed $34.6 trillion as the country is running a yearly national deficit equivalent to approximately eight percent of gross domestic product. This spending level has become a permanent part of the budget, rather than just a temporary fluctuation due to a recession.
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