In a move that brings the official numbers closer to observation, the Bureau of Commerce reported the economy shrank by 2.9% in the first quarter of 2014. That would be the most severe loss of gross domestic product (GDP) since the 1930’s.
Briefly quoting the Reuters report linked above:
While the economy’s woes have been largely blamed on an unusually cold winter, the magnitude of the revisions suggest other factors at play beyond the weather. Growth has now been revised down by a total of 3.0 percentage points since the government’s first estimate was published in April, which had the economy expanding at a 0.1 percent rate.
Three percent is still short of observation. Personally I feel the decline is close to 3.5% with 1.5% due to brutally cold winter weather as the Gore Minimum approaches.
That would suggest an overall 8 percent decline in GDP for 2014; and further erosion in the middle class’ economic position. Minorities have been hit particularly hard, with a reported 50% decline in the median net worth of black families in the last five and a half years.
The bottom line? Times are tough and are getting tougher. But when things get tough the tough get going.
If you cannot find a job, make one. There are always people who will pay to have something done – so learn to do “something.”