Great again: Reports show that U.S. GDP grew 33.1% in third quarter, the fastest expansion recorded

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According to the U.S. Commerce Department, over the summer, the U.S. economy recovered much of the ground it lost in the spring, growing at the fastest rate on record in the third quarter at an annualized pace of 33.1 percent. 

Reports show that despite the third-quarter gains, the economy is still 3.5 percent smaller than it was as when the year began. Some economists had expected the economy to grow 30.9 percent, whereas others had been expecting an even bigger expansion following the release of positive data in recent news on durable good data and international trade.

The third-quarter GDP gain was fueled by a record 40.7 percent increase in consumer spending. In addition, business investment surged 20.3 percent during the quarter, reflecting a 70.1 percent jump in investment in equipment. The housing market is booming, with residential investment growing at a rate of 59.3 percent.

Gross domestic product, the broadest measure of economic activity, grew at an annualized and seasonally adjusted rate of 33.1 percent between July and September. The government reports GDP as an annualized rate, which assumes that the growth rate from one quarter to another will continue for a full year. 

According to reports, the standard formula for calculating GDP is the U.S. annualizes the quarterly changes, which can exaggerate the changes. Absent annualization, the economy grew at 7.4 percent on the third quarter, by far the largest quarterly gain in records that began just after World War II.

Reports show that the previous record was 1950’s 16.7 percent rate of growth, a 3.9 percent quarterly gain. The third-quarter growth follows a 31.5 percent decline in the second quarter, a 9 percent contraction on a quarterly basis, and a five percent annualized contraction in the first quarter.

The rapid growth reflects the restarting of the economy after the spring lockdown, but America is not our of the woods just yet. Aberdeen Standard Investments senior global economist, James McCann said in a statement:

“This is going to be seized upon by both ends of the political spectrum as either evidence of the strength of the post-lockdown economic rebound or a cursory warning that the gains could be short-lived.”

Even though the third-quarter’s annualized growth rate was a larger number than the decline in the second quarter, it does not mean that the economy has fully and completely bounced back. Economists said that the drop between April and June was so severe that even though the third-quarter increase was large, it’s starting from a much lower base.

Comparing the size of the economy in the third-quarter to the pre-pandemic fourth quarter of last year hammers this home. Overall, economic activity is still $670 billion or 3.5 percent below where it was at the end of 2019. Fitch Ratings chief economist Brian Coulton said in a statement:

“As we move on from the violent swings in economic activity between March and September the sober realities of the economic situation will become more apparent.”

He added:

“We are still a long way from normalization and the surge in the virus cases means social distancing and all its related economic implications are here to stay.”

Some economists worry that the economy is slowing down again in the final three months of the year. COVID-19 infections are spiking agin and worries about renewed lockdown restrictions that could deepen the pandemic recession. Gregory Daco, chief U.S. economist at Oxford Economics said:

“Economists expect much more modest growth, far below the 10 percent annualized mark, in the final quarter of the year. It will take until the end of 2021 for economic output to get back to where it was before the virus hit.”

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WASHINGTON, DC – In so many appearances since he announced his candidacy, Joe Biden has uttered the words “look at my record.”

So, we decided to do that. 

While the 1994 Crime Bill he is so proud of has been the one of the biggest issues raised, just slightly in front of the tax increases he has always favored, we wanted to remind you of one that has fallen through the cracks during this campaign. 

In an effort to balance the budget, then President Obama put his Vice President in a leading role to push for economic recovery. One of the ideas Biden had in the effort to reduce the deficit was to put every last government budget line item on the negotiating table for reductions or eliminations in spending.

That included social platforms such as Social Security, Medicare and Medicaid.

Enter the Simpson-Bowles National Commission on Fiscal Responsibility and Reform.

According to Breitbart:

“The commission, which would be bipartisan, would consist of 18 members, with 12 appointed by Congress and six by the president. Its goal would be devising a long-term proposal for lowering the deficit and achieving a balanced budget by at least 2015.

“To chair the commission, Obama tapped former Senator Alan Simpson (R-WY) and Erskine Bowles, a one-time chief of staff to ex-President Bill Clinton. The commission, simply known as Simpson-Bowles, was set to release its recommendations by December 2010 in hopes that the incoming Congress would act on them the following year.”

While Biden was not a member of that commission, he inserted himself into the process, as he saw their role overlapping with his task of overseeing the the economic recovery effort. 

Presidential Candidate Biden claims to be for the expansion spending on Social Security, but Vice President had long been advocating for the freezing of all federal spending, to include the very social programs that many legitimately rely on for survival.

All in the name of slowing down spending and attempting to balance the federal budget. 

It is important to look at a couple of quick facts surrounding the economy during the eight years that Obama and Biden were in office versus where we are now. 

They definitely took office as we were in a recession. We will give me them credit for that aspect. 

When they walked into the Oval Office, they inherited the following numbers (in millions): 

People living under the poverty line: 39.32

People on food stamps: 32.49

Unemployed: 13.5

Millionaires: 6.7 

Four years into their administration, those number had changed significantly. 

In 2012, those four economic indicators looked like this. 

People living under the poverty line: 46.45

People on food stamps: 47.55

Unemployed: 22.51

Millionaires: 8.99 

So what did President Trump inherit in 2016?

People living under the poverty line: 45.04

People on food stamps: 47.55

Unemployed: 13.77

Millionaires: 10.8

And where are we now after 4 years of the Trump tax cuts and economic leadership? 

People living under the poverty line: 40.6

People on food stamps: 44.73

Unemployed: 19.61

Millionaires: 18.3

To be fair, the unemployment numbers under the current administration is up, thanks to COVID and the lock-downs happening in overwhelmingly Democratic led cities and states. It is important to look at the unemployment numbers in February 2020, prior to COVID shutting our country down. 

That number was 5.8 million. President Trump’s economic plan was not only recording record growth in virtually every sector while reducing unemployment by almost 60%.  And then, COVID. 

But what else is revealed in these numbers?

Eight years of Biden spearheading our economic recovery and stability led to increases in people living in poverty and on food stamps, accompanied with modest growth in the number of millionaires in the US, all while ushering in higher tax rates.

Oh, and also, the national debt double during the Obama years from $10T to $20T. On his and Biden’s watch, they managed to add as much to our debt as the previous 43 presidents combined. 

Since taking office, President Trump has led the reduction of people living in poverty as well as people living on food stamps. He also nearly doubled the number of millionaires in this country, by lowering taxes, removing unnecessary restrictions on business, and empowering small business owners. 

Now, back to Biden and his desires to extend Social Security and add Medicare for all. 

Working with Simpson, Bowles and the Commissions executive director, Bruce Reed, they put a plan in place to reduce the deficit by $4T over 5 years. 

If the name Bruce Reed doesn’t ring a bell, he helped Biden author the ’94 Crime bill. 

And what was one of the major ways that they planned to finance this plan? 

Breitbart reported: 

“Simpson-Bowles proposed to cut Social Security benefits for those in the top half of the income tax bracket, while raising the retirement age to 69. The plan also would have reduced the cost of living adjustments that are made to benefits as inflation rises.”

Based on 2019 numbers, if he were to enact the same ideas as President, that would mean that everyone earning more than $85,000 annually would continue to pay into Social Security but would ineligible to receive those benefits upon retirement. 

But, now he wants to expand it. 

Currently, Social Security taxes are capped after the first $137,ooo in salary. Meaning that people earning more than that pay a lower percentage in relationship to lower wage earners. So, Biden wants to make them pay their fair share. 

Makes sense, right? 

Or does it. 

Let’s break that down even further. 

The Social Security Administration Budget for Fiscal Year 2020 was $85.6B. 

Roughly 19% of American households earn more than $137,000 annually. That means almost 25 million households pay $8,494 dollars a year in Social Security taxes. The actual annual dollar amount on that is $207,510,118,800. 

But at the current rate of 6.2% of salary going to Social Security, even if we only use the math from the 18.3 million millionaires in the US, they are paying $155.4B annually. 

So, if the millionaires alone are nearly doubling the budget, how are they not paying their fair share. In fact, where is the rest of their share going?

One has to ask that question considering that Social Security is set to run out of money in 2035, according to Biden’s campaign website: 

“The Biden Plan will protect Social Security for the millions of Americans who depend on the program. With Social Security’s Trust Fund already in deficit and expected to be exhausted in 2035, we urgently need action to make the program solvent and prevent cuts to American retirees.”

All of this conversation for a program that Biden was OK stripping away from nearly 28 million Americans just a few years ago. 

Now, he wants to expand it while taxing people even more for Social Security, coupled with his plan to move the tax rate on the upper wage owners from 37% to 39.6%. Never mind the fact that he is sheltering his income to avoid paying his fair share of the tax burden. 

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Anti-Trump Tik Tok users try to sabotage President's rally, accidentally end up donating nearly K to GOP

The New York Times ran a “bombshell” story about how evil Donald Trump is, and now they have his tax returns to prove it.

Yet, as was the case with every single charge, the left levied against him during the impeachment, they have ZERO criminal activity to point to.

But in a move that surprises no one, the media has said nothing about the Biden’s using current tax laws at both the state and federal levels to avoid paying taxes on millions of dollars of income. 

The biggest thing that they can stand on is unfounded accusations that in 2016 and 2017, the President only paid $750 in federal income tax. Why? Because he was a real estate developer.  

Yet, the left is convinced that the President’s tax returns are a bombshell news item. 

But at the end of the day, he did not evade taxes. He avoided paying taxes, which is no different that what every single American does every year when the claim every exemption, deduction and credit that they can legally take. 

Town & Country ran an article in August discussing the net worth of Joe and Jill Biden, saying that Joe was worth less than $30,000 when he left the Vice-Presidency in 2009. Now he and his wife are now worth roughly $9 million.

But it also states that in 2017 and 2018, they had a combined income of over $15 million. 

Interestingly enough, the article claims that most of their wealth is tied up in real estate.  

It stated:

“The bulk of the Biden’s wealth is in real estate, but they have a portfolio of investments too.”

Forbes published:

“The Bidens’ two homes in Delaware are worth a combined $4 million. The site also notes that they have ‘cash and investments worth another $4 million or so’ as well as a $1 million federal pension.”

Wait, the Biden’s avoided paying taxes on millions of dollars and have a large real estate portfolio AND President Trump avoided paying taxes on millions of dollars and has a huge real estate portfolio.

And yet the only one of those two that is being accused of wrong doing is the President? 

Sure. That makes total sense. 

The Wall Street Journal’s Chris Jacobs took a hard look at the tax situation of the Biden’s for an article. 

Jacob’s writes: 

“According to their tax returns, in 2017 and 2018, the Bidens…avoided payroll taxes on nearly $13.3 million in income from book royalties and speaking fees. They did so by classifying the income as S-corporation profits rather than taxable wages.”

And it wasn’t just the Wall Street Journal. Even CNBC picked up the story. 

It was headlined: 

“Joe Biden used this strategy to trim his tax bill. You can, too.”

Are you starting to smell the irony and hypocrisy? 

According to the piece on CNBC, written by Darla Mercado, explained it succinctly. 

“The former vice president and 2020 presidential contender and his wife Jill Biden reported about $10 million in income in 2017 from a pair of S-corporations, CelticCapri and Giacoppa. The two entities were paid for the couple’s book deals and speaking gigs.

“The S-corps reported another $3.2 million in income in 2018.

“While both S-corps generated a lot of income, they paid out modest salaries  in comparison.

“In 2017, the two companies paid the couple a combined $245,833 in wages. This increased to $500,000 in 2018.”

For the record, Obama tried to close the loophole that the Bidens took advantage of.

In essence, the couple made $12,454,167 in 2017 and 2018 that they did not pay taxes on.

Not only did the escape paying federal taxes, they also did not pay Social Security tax and Medicare tax. At a combined rate of 15.3%, that means they avoided paying almost $2 million in just Social Security and Medicare. 

What does that boil down to? Well, base on average benefit distributions, the taxes that the Bidens avoided could have paid would fund the entire year for 104 recipients. 

At the end of the day, they did not break any laws by doing what they did. They used the system to reduce their tax burden. 

And we do not blame them. We all do what we can to reduce the bill to the IRS or increase the total if we get a return. 

Nor do we blame the President for doing what he could to reduce his tax burden. But, for some reason, the left seems to think that the tax returns somehow give them leverage over the President. They have been calling for him to release the records ever since he descended down the Trump Tower escalator to announce his candidacy. 

But, much like they didn’t care about John Kerry avoiding paying large amounts of tax, they do not care about Biden doing the same thing. 

Nancy Pelosi has built a net worth of over $140 million over the 33 years she has been in office at the federal level. 

According to scholarlyoa.com:

“As of January 2020, Nancy Pelosi’s estimated net worth is $140 million. A vast majority of her money was accumulated from her political activity. Naturally, her job allowed her to earn serious money for a long time. She had a really great salary because of her working as a House Speaker for four years.

“When she doesn’t work as a politician, she is operating a real estate business along with her husband. Their private business is worth $20 million. She’s been in high places throughout her whole career. You need to have in mind that surely, this wasn’t an easy job.”

They say that she has accumulated much of her wealth from “political activity.” The real estate group she runs with her husband is reportedly worth $20 million. So, her personal net worth is around $120 million. Not bad for someone who has been in politics since they graduated college in 1962. 

Even she has said that she would not provide returns to show how she built so a massive portfolio…unless she makes a run for the Oval Office. 

 


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