Tags: GDP | Obama | growth | Fed

Obama Administration Costs $767 Billion in Lost GDP

By    |   Friday, 20 Jun 2014 08:12 AM

Federal Reserve officials lowered their expectations for economic growth after their meeting this week. In their latest quarterly outlook, Fed officials said they expect the U.S. economy to grow by 2.1 percent to 2.3 percent in 2014. Three months ago, the Fed had expected growth to be 2.8 percent to 3.0 percent.

Despite years of easy money and extraordinarily low interest rates, the U.S. economy continues to struggle. If monetary policy is supporting growth, something else must be holding back the economy and that something else is most likely the regulatory burden imposed on businesses by the Obama administration.

The Fed also released figures showing how much economic growth is possible. The difference between potential and actual economic output is more than $767 billion.

The gap between potential economic output and real output is 4.6 percent. Prior to 2008, that gap had never exceeded 3.6 percent. Since 2008, the gap has never fallen below 3.96 percent.

It's difficult to blame the recession five years after it ended for the slow growth. There is something different this time. That difference could be the increased levels of costly regulation that prevent businesses from hiring. The difference could also be the increased access to federal benefits such as disability, which make it more convenient for low-wage workers to give up working and contributing to economic growth.

The Fed's most recent forecast shows that economic growth will continue to slow. Fed officials don't assign blame for the slow growth, but they could. The only difference between the current recovery and the recovery from previous recessions is the president. With his phone and his pen, President Obama is holding back economic growth.

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MichaelCarr
Federal Reserve officials lowered their expectations for economic growth after their meeting this week. In their latest quarterly outlook, Fed officials said they expect the U.S. economy to grow by 2.1 percent to 2.3 percent in 2014.
GDP, Obama, growth, Fed
277
2014-12-20
Friday, 20 Jun 2014 08:12 AM
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