Third-quarter GDP report is more bad news for Biden

OPINION:

On October 28, the Bureau of Labor Statistics released its highly anticipated third-quarter GDP report, which showed the U.S. economy grew at a sluggish 2 percent rate.

Unfortunately, the 2 percent growth figure fell far below the official estimate of 2.7 percent. And, the most recent GDP figure is a major drop from the robust 6.7 percent growth rate that occurred in the second quarter.

Diving deeper into the report, one finds a few particularly ominous signs.

For example, personal consumption expenditures for goods and services dropped precipitously in the latest GDP report. Among the categories most negatively affected were motor vehicles and parts and food services and accommodations.

Disposable personal income also decreased in the second quarter by $29.4 billion. As did the personal savings rate.

Yet, 10 months into the Biden administration, the disappointing economic news is becoming more the norm than the exception.

Since taking office, the Biden administration’s misguided policies have caused a myriad of economic problems.

For starters, President Joe Biden’s termination of the Keystone XL pipeline and cancellation of all new oil and gas permits on federal lands has caused energy prices to surge. Over the past year, gasoline prices have increased by more than $1 per gallon. Natural gas, which accounts for home heating bills, has skyrocketed as well.

When asked at a recent CNN town hall about what the administration could do to alleviate Americans’ pain at the pump, Mr. Biden replied, “My guess is you’ll start to see gas prices come down as we get … into next year, 2022. I don’t see anything that’s going to happen in the meantime that’s going to significantly reduce gas prices.”

Remember, under President Donald J. Trump, America achieved energy independence for the first time in decades. Gas prices were extremely affordable, as were home heating costs. Now, not so much.

Under Mr. Biden, Americans are also feeling the pain of rampant inflation across the economy. Meat, poultry, fish, and eggs are up 10.5 percent this year. Prices for used cars and trucks have increased by a whopping 24 percent so far.

According to Mark Zandi, chief economist at Moody’s Analytics, the average American household is paying an extra $175 per month in gas and groceries.

In response to the terrible inflation news, White House Chief of Staff Ron Klain retweeted this quip from Jason Furman, the former chairman of President Barack Obama’s Council of Economic Advisers: “Most of the economic problems we’re facing (inflation, supply chains, etc.) are high-class problems.”

Could Mr. Klain and other Biden sycophants, such as White House Press Secretary Jen Psaki, who mocked a reporter’s question about inflation and supply-chain delays, be more out of touch?

Adding insult to injury, Mr. Biden’s federal vaccine mandate is also causing a calamity. As of this writing, there are more than 11 million unfilled jobs in the United States.

Instead of putting policies into place that would spur hiring and new business start-ups, the Biden administration is more concerned with punishing all those who refuse to get the vaccine.

Making matters worse, the Biden administration has also increased existing welfare benefits and introduced more wealth redistribution programs, which will further impede job growth.

In September, the U.S. economy added 194,000 jobs, which was also well below forecasts.

The bottom line is that the Biden administration inherited an economy firing on all cylinders. In January 2021, energy prices were ultra-low, GDP growth was surging, inflation was at bay, and jobs were being created in record numbers.

Mr. Biden could have maintained the V-shaped recovery started by his predecessor if he had just left the economy alone.

However, in less than a year, Mr. Biden’s big government blunders have left the economy in shambles.

If things have already gotten this bad after Mr. Biden’s first 10 months in the Oval Office, I cringe to wonder what the next three years of Bidenomics have in store for Americans.

• Chris Talgo (ctalgo@heartland.org) is senior editor at The Heartland Institute.