Commerce Deparment Revises GDP Numbers

Although I don't like to celebrate, I can't help but have questions about how the Commerce Department's estimate of economic growth was so off. Instead of the gross domestic product growing at a 'robust and energetic' rate of 3.5 percent as reported a month ago, it turns out the economy only grew at an anemic and halting rate of 2.8 percent last quarter.

One of the most important jobs of the Commerce Department is to simply calculate one statistic, and this government agency can't even do that accurately. And it was not off by a small amount either- the difference between 3.5 and 2.8 is the difference between 3.5 and 4.7- and those are meaningful differences.

Do not be fooled by that 2.8 GDP growth rate either- that growth rate includes government spending, which was a mind boggling number last quarter. Imagine if you dropped massive amounts of spending on your credit card for several months- would you be any richer and more prosperous because of that? No, you wouldn't- the growth rate would be artificial and in the long-run dangerously bad, because of the interest you would have to pay on that debt. And yet, this is what our government is doing today- engaging in a reckless spending policy that is dangerous and going to destroy our nation.