Magic is the art of illusion. The same can be said of the Obama administration's recently revised second-quarter GDP figures. There's a lot less there than meets the eye.
On Thursday, the Bureau of Economic Analysis issued a report that revised second-quarter GDP numbers up from 1.7% to a more robust 2.5%. Not exactly a colossal number, but respectable -- that is, until you look up the magician's sleeve.
In reality, much of the upward revision resulted from improving balance of trade numbers, which are factored into GDP. It wasn't that more Americans were working, producing more, or earning more -- it was that they were importing less and exporting more. As a result, second-quarter GDP shot upward, making it look like the economy has turned around. It has not.
The BEA report itself made it clear that the Obama economy continues to limp along. Key elements of GDP related to wage growth remain anemic, including real personal consumption expenditures, nondurable goods, and spending on services. All of these declined in the second quarter.
No wonder personal consumption declined. More than 80% of jobs created year to date are part-time, low-paying jobs. No wonder fast-food workers are striking. Not that striking will do them much good -- they should be marching on the White House.
An unprecedented number of Americans are still laboring at minimum wage, and in most cases part-time, and the reason is Obama's hostility toward business. Increased regulation, higher taxes on small business owners, and ObamaCare have stalled economic growth in the U.S. Given the number of Americans who are still looking for employment, the idea of $15 an hour for fry cooks is laughable. A vote for Obama was a vote for $7.25 an hour. Get used to it.
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