Elmore: The Economy is Not Resilient—it’s on a Government-Fueled Sugar-High

[rangerrebew]

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.

https://ampamerica.com/elmore-the-economy-is-not-resilient-its-on-a-government-fueled-sugar-high/#google_vignette

[LMAO]

 :

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.

https://ampamerica.com/elmore-the-economy-is-not-resilient-its-on-a-government-fueled-sugar-high/#google_vignette

This has been the case that’s accelerated since the Great Recession. Obama,Trump, and Biden follow the same economic policy and, unfortunately, we know it will continue for the next four years



This is bad but it’s not unfixable. We’ll just have to let MAGAs and progressives kill each other off first before we can deal with this in a serious matter

[DefiantMassRINO]

After 2008 Great Recession, the economy was juiced by the Fed's quantitative easing.

Since Covid, the economy has been juiced by Government overspending.

Who knows what the next Black Swan will be?

[LMAO]

MAGAs, progressives, listen up. The below is what conservatives have been preaching since roughly 2008


From the article…

At the same time, annualized interest payments on US government debt have now topped $1 trillion for the first time last year. This equates to over 60% of federal income taxes just being used to pay for interest on the national debt. Even more concerning, interest costs are expected to triple to over $3 trillion by 2030.
Building the nation’s economic growth upon government support, rather than private enterprise investments or consumer spending, is like constructing a house on sand. While it may yield short-term bursts of economic activity, this approach poses a significant challenge to the sustained health of the economy as it risks trapping the American economy in a cycle of debt repayment, hindering genuine economic progress in the long run.