Alternative Visions - US GDP 2022 Analysis
Dr. Rasmus reviews the details of the just announced advance report on US GDP for 2022 and its 4th quarter. After a contraction throughout the first six months of 2022, the US economy ‘recovered’ at only a 2.9% rate in 4th quarter after a meager 3.2% in third quarter. For the entire year US GDP registered a mere 2.1% ‘average for year’ growth. That’s down from 5.9% from 2021 when the economy reopened from the Covid shutdowns. And both those grossly weak numbers occurred after a combined US fiscal-monetary stimulus of more than $8 trillion, provided by the Biden administration (Covid relief, spending, tax cuts) a more than $4 trillion and another $4 trillion provided by the Federal Reserve central bank. Rasmus breaks down the details of the composition of the 2022 weak 2.1% GDP rise, noting the growth due to excessive business inventory expansion (to decline in 2023), contracting real retail sales at the end of 2022, a continuing housing sector contraction, slowing US exports as the world economy slows, and coming US govt austerity social program spending in 2023.