Rep. Kevin Brady (R-TX), chairman of the congressional Joint Economic Committee, commented on today’s announcement by the Bureau of Economic Analysis (BEA) that real gross domestic product (GDP) declined at an annual rate of 2.9 percent during the 1st-quarter 2014. BEA had previously estimated that real GDP declined at an annual rate of 1.0 percent during the quarter.
“There is no way to sugar coat today’s report on economic growth. It’s more than the weather. After excluding the adverse effects of a rough winter, real GDP would have still declined in the first quarter. Even if the predictions of a stronger second quarter prove true, the U.S. economy has been at near stall speed over the past six months,” Brady noted.
“The ‘Growth Gap’ is widening, not narrowing. The U.S. economy is $1.6 trillion smaller than what an average recovery over the last 50 years would have generated. Since the recession ended in June 2009, the cumulative loss in output has been $4.0 trillion compared with an average recovery. This lackluster performance explains why a family of four is missing more $1,100 in after-tax income and why there are 5.8 million fewer private payroll jobs compared with an average recovery,” Brady concluded.