Biden’s “Build Back Better” Agenda Fails Again: GDP Growth Slows to 1.1%

The Bureau of Economic Analysis just released a report revealing that the real GDP increased by a measly 1.1 percent in the first quarter of 2023. This is even worse news than expected and a step back from the previous quarter’s 2.6 percent increase. Consequently, businesses are not investing much in inventory and construction, which is often a sign of uncertainty or caution in the economy.

It’s clear that Joe Biden’s “Build Back Better” agenda has done nothing to help the economy except drive up inflation. The report revealed that the personal consumption expenditures price index (an important inflation measure by the Federal Reserve) rose by 4.2%. That’s higher than the expected increase of 3.7% – this administration always underperforms!

If you thought that core PCE index would fare any better, you were wrong. The index, which is another key inflation measure, rose by 4.9% during the period, higher than the previous increase of 4.4%. This means that regular goods and services that people buy have become more expensive than anticipated, eroding their purchasing power, and leading to higher interest rates. It’s no wonder that consumers are becoming disillusioned with this presidential administration.

It’s not all bad news, however, as the report did have some positive indicators – consumer spending increased by 3.7%, meaning that people are still buying goods and services. Additionally, exports were up by 4.8%, which means that businesses are selling more products overseas. Unfortunately, gross private domestic investment, which measures how much businesses are investing in themselves, tumbled by 12.5%. This signals that businesses don’t have faith in the current administration’s policies and are not optimistic about future growth prospects.

Furthermore, the report showed that there was a decline in private inventory investment by businesses, impacting the economy reducing it by 2.26 percentage points. In other words, if it weren’t for the decline in inventory investment, the growth rate would have been higher. This decline is another example of the Biden administration’s failure to understand the free market.

Biden’s tax policies and burdensome regulations are turning businesses away from the United States. They’re investing less in stockpiling goods, and there’s a deceleration in nonresidential fixed investment. The decline in private inventory investment and nonresidential fixed investment may suggest a cautious approach by businesses due to uncertainty about the future. All of Biden’s policies can potentially lead to slower economic growth in the future.

Senator Ted Cruz says it best: “Joe Biden’s tax and spend policies are causing people to suffer. Americans are seeing the product of the Biden inflation – a dramatic and shocking increase in the cost of living expenses. It is time to turn the page on this administration and demand conservative policies that actually work for the American people!”

Written by Staff Reports

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