Economy shrinks in 2022, as Americans’ savings deplete and disposable income vanishes to inflation

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By CASEY HARPER | THE CENTER SQUARE

U.S. Gross Domestic Product decreased by 1.6% in the first three months of 2022, the latest federal economic data released Wednesday shows.

Previously, the BEA said the economy shrank by 1.5% before revising the numbers.

“Real gross domestic product (GDP) decreased at an annual rate of 1.6 percent in the first quarter of 2022, according to the ‘third’ estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2021, real GDP increased 6.9 percent,” the group said. “The ‘third’ estimate of GDP released today is based on more complete source data than were available for the ‘second’ estimate issued last month.

“The decrease in real GDP reflected decreases in exports, federal government spending, private inventory investment, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased,” BEA added. “Nonresidential fixed investment, PCE, and residential fixed investment increased…”

The BEA also confirmed what other federal data has shown: significant price increases.

“The price index for gross domestic purchases increased 8.0 percent (revised) in the first quarter, compared with an increase of 7.0 percent in the fourth quarter…” BEA said. “The PCE price index increased 7.1 percent (revised), compared with an increase of 6.4 percent. Excluding food and energy prices, the PCE price index increased 5.2 percent (revised), compared with an increase of 5.0 percent.”

According to the data, Americans also saw a decrease in their disposable income as well as their savings.

“Disposable personal income decreased $58.8 billion (revised), or 1.3 percent, in the first quarter, in contrast to an increase of $72.4 billion, or 1.6 percent, in the fourth quarter,” BEA said. “Real disposable personal income decreased 7.8 percent (revised), compared with a decrease of 4.5 percent. Personal saving was $1.02 trillion in the first quarter (revised), compared with $1.45 trillion in the fourth quarter. The personal saving rate – personal saving as a percentage of disposable personal income – was 5.6 percent (revised) in the first quarter, compared with 7.9 percent in the fourth quarter.”

This data comes alongside a steady stream of federal inflation data that shows prices have soared in recent months. The federal producer price index rose 10.8% in the previous 12 months and consumer prices have risen at the fastest pace in four decades.

Meanwhile, gas prices hit record highs earlier this month, topping $5 per gallon before dipping down. According to AAA, the national average price for regular gasoline is $4.87 per gallon, well over the average price of $3.11 at the same time last year.

Critics blasted President Joe Biden after the GDP numbers were released.

“Real GDP dropped 1.6% and the Biden Administration is still trying to say that the economy is great,” U.S. Rep. Lisa McClain, R-Mich., wrote on Twitter. 

14 COMMENTS

  1. This isn’t Biden’s fault he’s only been president for 18 months.
    He’s a really good president, you’ll see.
    At least not embarrassing us like the last guy……
    Etc,etc,etc.

    • Do you live under a rock? Biden is the worst president America has ever had. Not only is OBiden corrupt along with his entire family. OBiden’s illegal Executive Orders are destroying our country. OBiden caused the fuel shortages by shutting down oil fields and pipelines. OBiden opened the border and we are being flooded with illegal aliens who are NOT being screened and are being sent covertly all over America. Why is this? OBiden orchestrated supply line disruptions. OBiden’s policies have created the food shortages, by stopping shipments of fertilizer, telling farmers to destroy crops, etc. etc. Why are we wasting billions on Ukraine, when we can’t even feed US citizens. Yes, it is OBiden’s fault and his entire administration must face the consequences. Propaganda is intended to sway opinions away from facts. Use some discernment, or critical thinking, or open your eyes; what is happening is an orchestrated plan to destroy America.

      • Truth…
        It was snark. Internet gold really. Fink did a great job roping me in as well, it was not until the last line that I realized how good of snark it is.

  2. Inflation will get worse. If you’re smart you will prepare for what is coming.

    This is not fiction or science fiction.

    This is a man made disaster coordinated by a private International cabal in control of various governments intended to push the world population off of fossil fuels while introducing a financial reset of international banking systems.

    Joe Biden, Justin Trudeau, Boris Johnson, Emanuel Macron, Jacinda Arden, and many other world leaders are all puppets loyal to the WEF. Most were installed by rigged elections (many by electronic voting systems), some were groomed or bought.

    This is effectively a hostile takeover of the world by a private cabal with various degrees of infiltration in government and private industry. Klaus Schwab’s fourth industrial revolution is coming.

    The Great Reset and WEF 2030 agenda are designed to consolidate wealth and power among a very few rich individuals while implementing various policy goals to include a global digital ID (vax passport), central bank digital currency (CBDC), social credit score, carbon tax credit system. There are many other policy goals including Universal Basic Income. Infrastructure and implementation of new technologies are to be introduced on a timeline. These systems of control serve a purpose and are intended to make you obedient and dependent on government.

    Eventually this will lead to complete control of the world’s population followed by mass unemployment as robotics and AI displace 50-70% of the global workforce sometime between 2035-2050.

    It sounds insane, but they’ve put it all out in the open for years. The media tries not report on it.

    Inflation is the means to crush small business while Blackrock, Vanguard, Bill Gates and others move to consolidate control of the worlds assets. Energy costs rise to the point of parity with “renewable energy” making transition to green technologies an equal opportunity cost.

    Food costs will continue to rise this year and into the future. People will starve as the SDG agenda aims to decrease food production over the next decade by increasing the cost of fertilizers, while reducing livestock. Many will not live to see the next decade.

    The end goal is a complete financial collapse followed by transition to Central Bank Digital Currency (CBDC) and a one world government. All financial transactions will be tracked. You will no longer have privacy in transactions or the luxury of anonymous cash transactions. CBDC can be programmed to only be spent for certain purchases.

    If you upset the wrong uniparty leader it is entirely possible for you to be completely shut out of society. This is where the social credit score ties in with your digital ID. You can be denied internet access, the ability to travel, access to buildings, and also have your CBDC wallet with all your money frozen. It is also possible to implement geo-fencing for individual or regional lockdowns within a limited radius. See where this is going?

    Canadians saw a glimpse of this last year when those donating to the Canadian Trucker protestor had their bank accounts frozen and seized. China this month turned QR codes red on vast numbers of Chinese citizens to prevent them from withdrawing funds from banks. Australians have experienced radius lockdowns. Muslim Uyghurs.are effectively blacklisted by China’s social credit score system and are detained in camps.

    Under COVID-19 lockdowns you have already been conditioned to accept less rights and freedoms. No current vax jab? No job. Your health passport (global digital ID) will contain medical records, but it’s primary purpose is population control. The vax passport ID will restrict your ability to hold employment, travel, obtain education. Eventually this global digital ID will hold your unique financial data (CBDC). This ID will also act as a means to authenticate vehicle ignition and track individuals via a 5G network.

    Scared yet? There’s more, but it can’t all be listed here. Educate yourself.

  3. GDP is a specious concept, as defined, as it INCLUDES governmental spending in the measure of total productivity, instead of subtracting it as logic would indicate. Government is a drain on society, and produces nothing on its own, but can only feed parasitically off the production of others.

  4. Did it to yourselves. Voted for a mean, senile man who stated in so many words his intent to take down the oil industry.

    But Orange Man did mean tweets, so he had to go.

  5. Poorly written by Casey Harper. One has to go to the link to find out that the “BEA” in the article stands for “ Bureau of Economic Analysis”.

  6. Bring Back Orange Man!
    He was more entertaining then the pathetic Chi-Com Puppet we have now.

  7. I want to dispute the numbers – inflation is much worse than the “official” (officious!) rate. Government always uses smoke & mirrors to hide trouble. Thieving bidenomics has bankrupted my retirement and at age 66, I’m looking for full-time work after March – I’m going to have to work another 15 years – maybe more – unless some miracle happens. Let’s go brandon… and all it’s handlers and sycophants.

    • Look at all the big companies that (still) have pension programs. Sr. Management is leaving in droves as the value of pension plans attenuate with rising interest rates.

      Ask yourself… once this broken supply chain nonsense is over and a ton of inexperienced people are running the largest companies in the US and the world, what’s the likelihood that they’ll turn things around for the better?

      Best bet for the future? Tell your daughters that Chinese guys are hot.

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