This morning, GDP numbers for Q1 came out. Let's just say they were less than stellar.
The Commerce Department on Friday reported first-quarter US GDP growth of 0.7%, below the 1% economists were expecting.
Why the lackluster numbers? Seems the thing that drives the US economy is in freefall.
A large reason for the lackluster print was a big drop-off in the amount Americans spent.
Real personal consumption grew by just 0.3% in the first quarter, down from an increase of 3.5% in the fourth quarter of 2016. It's the smallest increase since Q4 2009, just two quarters removed from the recession.
Why, that's right. It seems that the great American consumer is feeling a bit skittish about things, and hoarding her money. Why could this be?
Could it be because we have an unstable man-child with his finger on the nuclear button? Could it be because this man-child is threatening trade wars with Canada? Could it be because it's patently obvious that this man-child and his party have a gross inability to govern?
A growth rate of 0.7% is just one floor up from the first quarter of a recession. It was obvious that the Obama expansion wouldn't continue indefinitely. But for Trump and his minions to destroy it in 3 months in office is rather amazing. The markets may be doing splendidly—although the reaction to this report may put the kibosh on that—but it seems that the real economy is casting its verdict on Trumpism. To pay for all the billionaire and millionaire tax cuts, we need a growth rate of 3% to 4%. This is a very bad start to Donald's Excellent Adventure.
His hardcore base won't abandon him even when it's on the bread lines. But the normal Republicans who voted for him out of habit might just start to have second thoughts if the economy tanks. No blaming the black guy will work: Barack Obama had the economy humming. Donald Trump is driving it into a ditch. This economy report is another data point in Trump's unraveling. May he and his cabal be ushered out before the damage is severe.