Under President Joe Biden, the U.S. economy has struggled. Recent reports showed that Gross Domestic Product (GDP) slightly rose 3.2% in the fourth quarter of 2023, but not without increasing the national debt.
Biden’s Bureau of Economic Analysis (BEA) said the GDP growth in the fourth quarter reflected increases in consumer spending, exports and government spending.
Consumer spending, which accounts for about 70% of the U.S. economy, grew at a 3% annual pace in the fourth quarter, according to the Associated Press (AP).
ZeroHedge noted that increases in exports reflected rises in goods, primarily driven by petroleum. The outlet reported that growing spending by state and local governments reflected increases in investment and consumption expenditures.
US GDP "Grew" $334 Billion In Q4… That Growth Cost $834 Billion In Debt https://t.co/EQEU6shzmo
— zerohedge (@zerohedge) February 28, 2024
Personal consumption expenditures increased by 2.7%, marking a decrease from 5.9% in 2023.
Following such reports, the International Monetary Fund (IMF) projects that the U.S. economy will grow by 2.1% in 2024.
The rise in GDP isn’t as good as it seems. In the third quarter of 2023, data shows that nominal GDP increased from $27.64 trillion to $27.94 trillion in the fourth quarter. During this period, the U.S. economy increased about $340 million in nominal dollar terms.
Interestingly, the growth came from debt. ZeroHedge pointed out that on Sept. 30, 2023, the U.S. debt stood at a little over $33 trillion. By Dec. 31, 2023, such a figure rose to $34 trillion, meaning that it cost $834 billion in debt during the third quarter to grow the economy by $334 billion.
The development comes after Bitcoin’s value soared over $60,000, just $10,000 from a record high.
Several economists praised the GDP growth while ignoring the debt of the U.S.
“A senior economist with Allianz Trade Americas, Dan North, said the economy is exceeding the expectations of many.
“This year has been like Rock ‘Em Sock ‘Em Robots, and the economy is knocking the blocks off the economists, always outperforming,” North said, adding that Federal Reserve Chair Jerome Powell “has got to have a smirk on his face this morning.”
“Again, he’s defying the economists’ predictions with strong growth and inflation clearly coming under control,” North continued.
