Tax Hikes, Cuts in Government Spending – Who Exactly Expected Robust Economic Growth

Oh, the Austerians, That’s Who – Of Course – The Economic Illiterate

The preliminary growth numbers for the first quarter of the year (actually 2^nd quarter of the government’s fiscal year, but more about that another time) were kinda weak, a 2.5% annualized growth rate for the January – March 2013 period.  From the Wall Street Journal.

Economic Growth Stays Soft

Cutbacks in Federal Spending, Restraint From Businesses Keep Recovery From Gaining Momentum

 

Gosh, in January taxes went up and the government has been on a cut spending path.  Basic economics says this results in lower growth.  Any questions?