Original reports for first quarter growth in the economy this year showed a paltry 0.1% increase in GDP. Even despite the anemic growth, the Obama administration was saying it demonstrated a victory for Obamacare, claiming the President’s signature policy had actually prevented a GDP contraction.
Latest revisions show that wasn’t the case at all. In fact, Obamanomics and Obamacare helped the U.S. economy limp along to its worst showing since the Great Recession. Earlier today, the Bureau of Economic Analysis reported that the economy contracted by 2.9%.
Via the New York Times:
The beginning of the year was not just bad for the United States economy: It was, on paper at least, the worst quarter since the last recession ended five years ago.
The Commerce Department revised its estimates of first-quarter gross domestic product Wednesday to show that the economy contracted at a 2.9 percent annual rate. A combination of shrinking business inventories, terrible winter weather and a surprise contraction in health care spending drove the first-quarter decline, which is the worst since the first quarter of 2009, when the economy shrank at a 5.4 percent rate.
In April, press secretary Jay Carney had this to say about the original economic reports:
“The fact of the matter is, and the GDP report makes it clear that it was consumer spending on health care that helped drive economic growth in the first quarter, and that is directly related to the increase of people who have insurance because of the Affordable Care Act.”
Can we now assume that the Obama administration, in light of the updated reports, will properly note that a lack of spending on health care actually helped drive the American economy in the ditch?
That would require honesty.
RNC Chairman Reince Priebus responded to the latest reports saying:
“It’s clear the White House doesn’t know which way is up, just two months ago bragging that ObamaCare was helping the economy and now we’re seeing the worst economic report since the low point of the recession in 2009. The Republican House has sent Harry Reid and Democrats in the Senate dozens of bills to help jump start our economy and it’s time they stop standing in the way.
Standing in the way of economic progress is what Democrats do best.