After growing at an annualized rate of 30% after the pandemic’s trough, the November and December economy contracted at an annual rate of 7%, red-flagging a possible recession — or worse.
The ongoing stricter lockdowns occurring in predominantly blue states and the election steal are likely to blame.
Information coming out now shows that maybe the Democrats have again gone too far. Their efforts to hurt the economy in 2020 during the pandemic are finally coming to fruition. Is this a preview of what Americans might face over the next four years?
The annualized growth rate in the third quarter was a record setting all-time high increase of over 30%. This record may never be matched which is why the Democrats went all-in to stall the economy as much as possible. Now as the year has ended it appears their efforts worked.
Monthly GDP declined 0.8% in November following a 0.6% increase in October that was revised lower by 0.1 percentage point. The decline in November was the first so far in the recovery and reflected declines in personal consumption expenditures, nonresidential fixed investment, net exports, and nonfarm inventory investment. There were partially offsetting increases in residential investment and the portion of monthly GDP not covered by the monthly source data. Implicit in our latest forecast of 3.0% annualized GDP growth in the fourth quarter is a further, 0.4% decline (not annualized) in December.
The red states were much more lenient in setting COVID restrictions and the result was their economies way out performed the economies of the blue states. All one needed to do was fly through a state like Pennsylvania or New York and you could see and feel a different atmosphere. Airports in New York, San Francisco and Pittsburgh were barely running while Charlotte or Dallas/Fort Worth were like normal. Of course the number of COVID deaths, which are suspect anyways, were not impacted.
This is likely why New York’s Governor Cuomo decided yesterday to open the state despite its COVID cases reporting at all-time highs: