{"id":1801869,"date":"2023-01-11T07:37:04","date_gmt":"2023-01-11T12:37:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801869"},"modified":"2023-01-11T07:38:49","modified_gmt":"2023-01-11T12:38:49","slug":"massive-government-spending-will-exacerbate-2023-economic-downturn-analyst","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/massive-government-spending-will-exacerbate-2023-economic-downturn-analyst\/","title":{"rendered":"Massive Government Spending Will Exacerbate 2023 Economic Downturn: Analyst"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmassive-government-spending-will-exacerbate-2023-economic-downturn-analyst%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801869&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p><em>News Analysis<\/em><\/p>\n<p>There are a lot of banks <a href=\"https:\/\/www.theepochtimes.com\/2023-spells-big-trouble-for-us-economy-majority-of-big-banks-warn-reports_4957090.html\" target=\"_blank\" rel=\"noopener\">Forecast<\/a> economic pain in 2023, one economic historian warns that the U.S. government\u2019s gargantuan spending programs will push the economy well past its breaking point.<\/p>\n<p>Experts are arguing about whether the <a href=\"https:\/\/www.theepochtimes.com\/t-united-states\">United States<\/a> It is likely that the country will experience a recession. Even optimistic forecasts predict that even if a recession is not imminent, there will be a severe downturn marked by slower growth and higher unemployment.<\/p>\n<p>Morgan Stanley\u2019s 2023 <a href=\"https:\/\/www.morganstanley.com\/ideas\/global-macro-economy-outlook-2023\">Global Macro Outlook<\/a> It is straightforward, and predicts that the U.S. Economy will be strong. \u201cwill tread water with 0.5% growth.\u201d The report also suggests that even though inflation slows towards the end of the year the outlook for jobs is grim.<\/p>\n<p>\u201cNet job gains have slowed markedly over the year and, together with a modest rise in labor force participation, will likely result in a slightly higher (but relatively healthy) unemployment rate of 4.3% in late 2023,\u201d The outlook is positive.<\/p>\n<h2><strong>Top Concern<\/strong><\/h2>\n<p>The U.S. voter is particularly worried about the economic outlook and sensitive to negative news at this time.<\/p>\n<p>Of all the issues of concern to the public in the new year, the state of the economy\u2014as measured by inflation, housing prices, jobs, and other indices\u2014easily outweigh other issues in the minds of voters. According to a poll\u00a0(<a href=\"https:\/\/apnorc.org\/wp-content\/uploads\/2022\/12\/AP-NORC_2023-Priorities-Brief-V7.pdf\" target=\"_blank\" rel=\"noopener\">PDF<\/a>) conducted in December by the Associated Press NORC Center for Public Affairs Research, this concern cuts straight across party lines. Although Republicans and Democrats are in sharp disagreement over border security, climate change and private guns, they share a common belief that the government should be more effective at addressing the economic issues that determine the quality and life for large numbers of people.<\/p>\n<p>\u201cAmong all policy areas, domestic issues continue to be cited most frequently as the public\u2019s most pressing policy concerns \u2026 Looking at specific domestic policies, economic issues are the public\u2019s top priority. The biggest concern is the economy in general, with 31% mentioning it as a top priority, slightly more than in June,\u201d the NORC Center\u2019s report states.<\/p>\n<figure id=\"attachment_4728910\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy wp-image-4728910 size-full\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/GettyImages-1242677105.jpg\" alt=\"grocery store\" width=\"1024\" height=\"624\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4728910 size-full\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/GettyImages-1242677105.jpg\" alt=\"grocery store\" width=\"1024\" height=\"624\" \/><\/noscript> A crowd shops at a Montebello, Calif. supermarket on Aug. 23, 2022. (Frederic J. Brown\/AFP\/Getty Images)<\/figcaption><\/figure>\n<p>Tellingly, the second most-cited concern, in the poll\u2019s findings, namely inflation, is a subsidiary issue of the most-cited, economic concern. 27% of respondents identified immigration as their most pressing concern, and 16% cited violence and crime.<\/p>\n<p>The report&#8217;s authors summarize their findings succinctly: \u201cEconomic issues dominate the public\u2019s agenda for 2023.\u201d<\/p>\n<p>These survey results were used to determine the S&#038;P 500. <a href=\"https:\/\/www.cnbc.com\/2022\/12\/29\/stock-market-futures-open-to-close-news.html?__source=sharebar|facebook&#038;par=sharebar&#038;fbclid=IwAR1Tswf90IzKWChTpTucGeZznQmRNT-H82222w7-94LeP09DFHlDvWvFAr0\">Closed<\/a> nearly 20 percent lower at the end of 2022 than in the year prior, marking the stock market\u2019s worst overall performance since 2008, and record gas prices caused mass panic.<\/p>\n<p>Massive government spending on various policies, programs, and other policy areas is contributing to the slow economic growth.<\/p>\n<p>That\u2019s the view of Brian Domitrovic, a professor of economic history at Sam Houston State University in Texas. Domitrovic believes the country&#8217;s current period of slow economic development is reminiscent the 1970s, a decade commonly associated with stagnation.<\/p>\n<p>\u201cWe had slow growth for a dozen years after 1969, and we also had very short price appreciation in the 1970s, and there was kind of a widespread understanding that nobody had any real solutions that were very good or plausible,\u201d Domitrovic said so to The Epoch Times.<\/p>\n<h2><strong>Power of the purse<\/strong><\/h2>\n<p>There are obvious parallels. However, the very high rate of government spending makes the prospects for the next year more bleak, he stated. Although this is not a new phenomenon, and spending was quite high even under the Republican presidency of George W. Bush back in 2001, the Biden administration\u2019s fiscal profligacy is a game-changer and is not offset by the economic growth that acted as a partial brake on such huge spending in the past, Domitrovic argued.<\/p>\n<p>\u201cWhen you look at the spending in the 1980s, it went up to 24 percent of GDP from the previous high of 19 percent. That was in the context of racing GDP growth beginning in 1983. We have slow growth now,\u201d He said.<\/p>\n<p>The National Defense Authorization Act (NDAA). a href=&#8221;https:\/\/www.theepochtimes.com\/www.armed-services.senate.gov\/imo\/media\/doc\/fy23_ndaa_agreement_summary.pdf&#8221;>allocates<\/a> $857.9 billion for various departments and programs in fiscal year 2023, including numerous imperatives not strictly related to the defense of America\u2019s borders, such as $800 million for the Ukraine Security Assistance Initiative, $165.3 million for \u201cthe continued training and equipping of vetted Syrian groups and individuals,\u201d Independent assessment of the U.S.&#8217;s role in training, advising and equipping Somalian forces, and establishment of a \u201cCivilian Protection Center of Excellence\u201d These will serve as \u201cthe focal point for matters related to civilian casualties and other forms of civilian harm resulting from military operations involving United States Armed Forces.\u201d<\/p>\n<figure id=\"attachment_4968930\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy wp-image-4968930 size-large\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/biden-jan.-6-speech-1200x800-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"427\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4968930 size-large\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/biden-jan.-6-speech-1200x800-1.jpg\" alt=\"Epoch Times Photo\" width=\"640\" height=\"427\" \/><\/noscript> In Washington&#8217;s East Room, President Joe Biden speaks. (Patrick Semansky\/AP Photo)<\/figcaption><\/figure>\n<h2><strong>Give fuel to the fire<\/strong><\/h2>\n<p>The NDAA entails large-scale spending, which is among many historical programs and packages. This includes the Consolidated Appropriations Act 2023. <a href=\"https:\/\/www.theepochtimes.com\/biden-signs-1-7-trillion-government-spending-omnibus-bill_4952480.html\" target=\"_blank\" rel=\"noopener\">Signed<\/a> December 29, 2009 by President Joe Biden, which channelizes $1.7 trillion in fiscal 2023 to a variety of spending programs.<\/p>\n<p>Another initiative is the Biden administration\u2019s Inflation Reduction Act, which ended up being a slimmed-down version of the president\u2019s $2 trillion Build Back Better Act. It legislation <a href=\"https:\/\/www.theepochtimes.com\/experts-divided-over-long-term-economic-effects-of-the-inflation-reduction-act_4640741.html\" target=\"_blank\" rel=\"noopener\">Authorized <\/a>New spending totals $433 billion<\/p>\n<p>Domitrovic believes that while some aspects of the current economic landscape may be familiar to past administrations, the Biden administration has created a new set of fiscal circumstances almost without precedent.<\/p>\n<p>\u201cThe change is spending. Unprecedented increases in government spending are certainly very recession-oriented. The function of such spending is to cause recessions, since government spending takes up resources that are in the economy,\u201d He said.<\/p>\n<p>Domitrovic also sees a negative effect in the government contracting of citizens who would otherwise work in the private industry and contribute to GDP growth.<\/p>\n<p>\u201cYou make government contracts to take people out and busy them with government work. That\u2019s negative economically, and then you buy their stuff instead of the real market action of the private sector. It\u2019s all dedicated to eliminating resources from the private economy and making those resources inert in real economic transactions. That\u2019s what a recession is,\u201d Domitrovic spoke.<\/p>\n<p>\u201cCapital interacts with labor to create production. But businesses are becoming more reluctant to commit to capital and labor, and you\u2019re seeing these big layoffs at Amazon. Keep removing resources from the economy, that\u2019s a great way to start a recession,\u201d He added.<\/p>\n<p>The Epoch Times reached out to the White House in an effort to get comment.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-michael-washburn\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_MichaelWashburn_1.jpg\" alt=\"Michael Washburn\" \/><\/a>\n\t\t\t\t\t<\/div>\n<p>Michael Washburn, a New York-based journalist who covers U.S.-related topics, is based in New York. He is a former journalist who specialized in financial and legal journalism. In addition, he hosts the weekly podcast Reading the Globe. His books include \u201cThe Uprooted and Other Stories,\u201d \u201cWhen We&#8217;re Grownups,\u201d And \u201cStranger, Stranger.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>News Analysis There are a lot of banks Forecast economic pain in 2023, one economic historian warns that the U.S. government\u2019s gargantuan spending programs will push the economy well past its breaking point. Experts are arguing about whether the United States It is likely that the country will experience a recession. Even optimistic forecasts predict &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1801872,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[8016,9139,5458,14363,4202,14362,5045,5908,3819,3834],"class_list":["post-1801869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-8016","tag-analyst","tag-bongino","tag-downturn","tag-economic","tag-exacerbate","tag-government","tag-massive","tag-report","tag-spending"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1801869"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1801872"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1801869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1801869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1801869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}