By Casey Harper (The Center Square)
President Joe Biden defended newly released weak economic growth data.
Federal data showed that U.S. gross domestic product grew at an annual rate of 1.6% in the first three months of this year, down from 3.4% in the previous quarter.
Data from the U.S. Bureau of Economic Analysis fell well short of economists’ expectations, raising concerns about the economic outlook for this year and sending stocks lower Thursday morning.
“The large inventories accumulated in the third quarter of last year continue to be reduced, which leads to a decline in GDP – in other words, the previous economic ‘growth’ is essentially just a transfer that pulls future positive numbers to an earlier period,” after the EJ data was released. Heritage Foundation economist Anthony writes on X (formerly Twitter).
after BEA number Following the announcement, President Joe Biden issued a statement on Thursday, calling the economy “strong.”
“Today’s report shows that the U.S. economy remains strong and continues to grow steadily,” Biden said.
He went on to note the economic recovery since COVID-19-era shutdowns stifled jobs and economic growth.
“Since I took office, the economy has grown faster than any presidential term in the past 25 years, including 3% last year, while the unemployment rate has remained below 4% for more than two years,” Biden said.
Biden then turned to attacking corporate charges and Republicans.
“I have a plan to lower housing costs by building 1 million new homes. Republicans in Congress have no plan to lower costs,” Biden said. “They are working to provide more tax cuts to the rich and big corporations while cutting programs like Social Security, Medicare and the Affordable Care Act. They believe the best way to grow the economy is from the top down. The American people know we need to start from the bottom up. Build it from the center out and from the bottom up so the middle class has a fair shot and no one is left behind.
Former President Donald Trump commented on the GDP data to reporters waiting outside court on Thursday morning.
“… GDP just came out and it’s all the way down to 1.6% and it’s going down,” Trump told reporters, as reported by Fox News. “It’s going to get worse… Gasoline prices are going up significantly. Energy costs are going up significantly. , the stock market is, in a sense, catching up to him.
Notably, data from the U.S. Bureau of Economic Analysis show Americans had fewer savings accounts in the first three months of the year.
“Personal saving was $755.7 billion in the first quarter, compared with $815.5 billion in the fourth quarter,” the BEA said. “The personal savings rate (personal savings as a percentage of personal disposable income) was 3.6% in the first quarter, compared with $815.5 billion in the fourth quarter. is 4.0%.
Co-organized with permission from Center Square.
