{"id":33825,"date":"2011-05-19T01:45:24","date_gmt":"2011-05-19T01:45:24","guid":{"rendered":""},"modified":"2011-05-19T01:45:24","modified_gmt":"2011-05-19T01:45:24","slug":"obama_s_gdp_grew_because_the_g_now_stands_for_government","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2011\/05\/19\/obama_s_gdp_grew_because_the_g_now_stands_for_government\/","title":{"rendered":"Obama\u2019s GDP Grew Because the “G” Now Stands for “Government”"},"content":{"rendered":"
\n

RUSH: Barack Obama today out at the Eisenhower Executive Office Building and he\u2019s talking to small business owners about health insurance reform and the economy. I actually think every sentence that he said to these guys began with F-you. They don\u2019t know it, but it did. He\u2019s out there promising the millionaires, these small business owners, these millionaires, that it won\u2019t cost them a dime and all this is going to save them money. He is insulting their intelligence. We have a couple sound bites. Here is number one.<\/p>\n

OBAMA: I am gratified that our economy grew in the third quarter of this year. The 3.5% growth in the third quarter is the largest three-month gain we have seen in two years. This is obviously welcome news and an affirmation that this recession is abating and the steps we\u2019ve taken have made a difference.<\/p>\n

RUSH: That\u2019s a crock.<\/p>\n

OBAMA: While this report today represents real progress — <\/p>\n

RUSH: No, it doesn\u2019t.<\/p>\n

OBAMA: — the benchmark I use to measure the strength of our economy — <\/p>\n

RUSH: Right, yeah.<\/p>\n

OBAMA: — is not just whether our GDP is growing — <\/p>\n

RUSH: It\u2019s not.<\/p>\n

OBAMA: — but whether we\u2019re creating jobs — <\/p>\n

RUSH: We\u2019re not.<\/p>\n

OBAMA: — whether families are having an easier time paying their bills.<\/p>\n

RUSH: They\u2019re not. Look, you can try to cover up 10% unemployment all you want with a phony GDP number of 3.5%, you can go out there and say you saved the economy, but there are no jobs. Obama is gratified, but by his own benchmark his economy is still failing. Now, let me see if I can put this GDP number into context for you, \u2019cause it\u2019s phony. It is a fake number. Gross domestic product needs to be understood as the sum of three things: consumption by consumers, investment by business, and spending by government, CIG. Consumption, investment, spending by government. So they say the total GDP went up 3.5%. But was there any new consumption by consumers? No. Was there any new investment by business? No. Was there spending by government? Yes. That\u2019s the G. The increase is in G, spending by government. <\/p>\n

There was no investment in business. There was no consumption by consumers. You\u2019ve seen all the numbers. Home sales down; consumer spending down. There was no economic growth. What happened here, you had the Clash for Clunkers fiasco and now the Edmunds.com bunch estimates that that program cost taxpayers $24,000 for every car sold, and then there was that first time home buyers fraud, all kinds of government spending which was government borrowing. So the government spending sector goes up, and they, oh, the economy grew by 3.5%. It did not. Government grew. All that\u2019s happened here is that money has been shifted from taxpayers today and tomorrow into Obama approval ratings today.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: I want to take another stab at this GDP thing, because checking e-mail during the break, ‘What do you mean, Rush, you have never said that gross domestic product increases in the past were fake. You\u2019re just anti-Obama.\u2019 No, no, no, no. I am anti-Obama, but don\u2019t you find this suspicious right before some elections hit next week? You know that this number is going to be revised downward later this month and nobody is going to pay any attention to it. But folks, there is no economic growth, at least in the private sector, and that\u2019s what everybody cares about. The private sector is where you and I operate. The private sector is where you and I test the waters. It\u2019s where we pursue the American dream. Gross domestic product equals the sum of consumption by consumers, investment by business, and spending by government, so the total goes up by three-and-a-half percent, it seems like growth, but all the increase is in G, spending by government, financed by an increasing deficit. It\u2019s fake. <\/p>\n

Look at it this way. It\u2019s called the Keynesian fallacy. If I buy a refrigerator, that\u2019s a real transaction. It counts toward C, consumption. If I own a business and I buy a new machine tool or a forklift or whatever, that\u2019s real also. It counts toward I, investment. Real recoveries are led by consumption and investment, and there ain\u2019t any of that going on, I\u2019m sorry. I wish there were. Now, the Keynesian fallacy is based on the multiplier theory — I\u2019ve done my economic homework on this — and it is that government spending causes growth. That\u2019s what Obama believes, that\u2019s what all these liberals believe, the government spending, that\u2019s the engine. They think government creates jobs. They think government does all these wonderful things. The private sector is where all the fraud takes place. The private sector is where all the cheating goes on, the private sector is where the real people get cheated by the big shots on Wall Street and ExxonMobil and Big Oil, Big Pharma, big whatever. They think government is the engine. And so when it grows, ooh, baby, we\u2019re smoking, cool. That\u2019s the Keynesian fallacy. <\/p>\n

Now, government spending could cause growth if the money is spent on certain things like infrastructure and keeping us safe. But then the growth that it causes comes from the consequences later that increase in consumption and investment. Now, this growth that they\u2019re talking about here today, this GDP number, is just an accounting trick. Suppose I borrow $10,000 on my credit card, and then I tell my wife, ‘Look, honey, here\u2019s the $10,000, I just got a raise.\u2019 And then I go out and I spend that income on a new car or boat or whatever. You know, my wife, my girlfriend, whatever, would hit me with a chair. Borrowing money and spending it is not increased income. It\u2019s sort of like baseline budgeting, if I can remind you of that lecture. Let\u2019s say you go and buy a car, you\u2019re looking at buying a car, and you want to spend, oh, $70,000 on a car. <\/p>\n

So you go to some dealerships, start kicking the tires, look around. You go to Mercedes, you go to Ford, go to Chrysler, go to GM. And the car you end up liking costs $50,000, not 70. And you tell your family, we just saved 20 grand, when you didn\u2019t. You just spent 50. It\u2019s the same thing here. You borrow $10,000, you go spend it on something, and you tell yourself you got a raise, your income went up. That\u2019s what\u2019s happened here with this GDP number. This 3.5% growth is all in government, and as we know government doesn\u2019t have any money. Government\u2019s printing money. We\u2019re running a deficit of $1.4 trillion this year. We don\u2019t have any money. So this growth is fake, it is fraudulent, it is phony, it doesn\u2019t exist, there is no growth, and Obama himself even admitted it out there. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Here\u2019s Tony, Wichita Falls, Texas. Hello, sir.<\/p>\n

CALLER: Hello, Rush. Dittos.<\/p>\n

RUSH: Hi.<\/p>\n

CALLER: I\u2019d like to speak to you a little bit about the first hour when you were talking about the gross domestic product equation. There\u2019s actually another element in that equation and that is net exports, and since Bernanke, Geithner, and Obama got in office they\u2019ve been exploding the amount of currency being printed, and that has massively devalued our dollar. When you devalue our dollar you basically make our products overseas cheap to the Europeans, the Japanese and whoever will buy them. And so the way I see it, the only two people that are really benefiting from all this stimulus stuff is our government, who\u2019s on a spending spree, and the foreigners are getting all of our quality products at a very, very cheaper price, because we have a devalued dollar.<\/p>\n

RUSH: You know, exports, there\u2019s no question exports are a function, but I\u2019d rather focus on exports when talking about the trade deficit. My formula for explaining this fraudulent, fake growth number, 3.5% today, I\u2019m not going to tamper with it \u2019cause it was brilliant. It\u2019s the most sensible, easy to understand explanation of what GDP is. GDP equals CIG: consumption, investment, government. Government spending is also part of GDP. Now, the growth that we\u2019ve had, that they announced 3.5%, it\u2019s all from government spending, it\u2019s all from government borrowing. There is no consumption increase; there is no investment, businesses investing. There aren\u2019t any inventories. Try to go out and buy something, they\u2019ll have to order it for you. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Barack Obama today out at the Eisenhower Executive Office Building and he\u2019s talking to small business owners about health insurance reform and the economy. I actually think every sentence that he said to these guys began with F-you. They don\u2019t know it, but it did. He\u2019s out there promising the millionaires, these small business […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nObama's GDP Grew Because the "G" Now Stands for "Government" - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2011\/05\/19\/obama_s_gdp_grew_because_the_g_now_stands_for_government\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Obama's GDP Grew Because the "G" Now Stands for "Government" - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Barack Obama today out at the Eisenhower Executive Office Building and he\u2019s talking to small business owners about health insurance reform and the economy. 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