WATCH: Look at the Stupid Way CNN Covered the ‘Quirky’ GDP Contraction News

CNN’s Matt Egan spun himself into a whirlpool of insanity trying to downplay bad economic growth.

According to the Bureau of Economic Analysis, Gross Domestic Product fell 1.4 percent during Q1. This was a complete contrast with economists’ estimates of a 1 percent rise. That is a miss of 2.4 percentage points. U.S. GDP taking a nosedive was worsened by the 40-year-high inflation currently plaguing the economy and drilling holes in Americans’ wallets. Janney Chief Fixed Income Strategist Guy LeBas summed up the significance of the GDP falling into the negative against expectations of growth: “Nasty miss.” Egan tried to minimize the political damage on the April 28 edition of CNN’s New Day : “We shouldn’t panic about these numbers.”

First look at 1Q GDP 1.4% vs. +1.0% exp. It’s a big miss.

1) Consumption +2.7%, and Investment +2.3%

2) Strong +3.7% Final Sales to Private Domestic Buyers

(3) Federal expenditures show a contraction of -5.9% compared to exp.

4. Inventory liquidations 0.8% drag exports 3.2% drag

— Guy LeBas (@lebas_janney) April 28, 2022

Egan, who was mocked last year for saying Biden wasn’t responsible for high gas prices, dismissed the contraction:“During COVID, we’ve had a lot of weird economic numbers and we just got another one.” The chyron for the segment was extremely misleading: “U.S. Economic Growth Rate Slowed Sharply in First Quarter.” That’s an interesting way of glossing over the fact that negative growth isn’t really growth at all. “We shouldn’t panic about these numbersBecause some have driven the weakness Intriguing components here,” Egan propagandized. He blamed everything from “Omicron,” to a “lapsing in some of the pandemic assistance,” and to “the trade deficit” for the horrible GDP numbers, rather than Biden’s policies. Because the government cut off all the loose money, the economy suffered.

Aside from the stupidity of blaming “Omicron” for lackluster growth, the “trade deficit” argument is misleading in and of itself. 

EconoFact 2017 noted that the blame for slower GDP growth is incorrectly attributed to trade deficit.

It is wrong to assume that trade deficits are the cause of slow growth.The U.S. economic growth was strong between 2002-2005, but the trade deficit grew even more: From a little less than -4% GDP to close the -6% mark (see chart). The trade deficit plummeted sharply from 2008 to 2009, when the Great Recession hit (the darkest period of time between the orange-brown lines).

But Egan was desperate to reassure that all was well in Biden’s paradise. Egan urged viewers not to focus on the GDP shrinkage through one lens. “The real driver of the economy is consumer spending, and that actually grew — 2.7 percent pace,” he said. “That is solid. It’s actually a fast pace than the final three months of last year. That is a good sign.” Did Egan forget that people need income to spend money? “[I]nflation is outpacing wage growth,” FiveThirtyEight reported April 26. “Despite a 5.6 percent jump in wages year-over-year, 8.5 percent inflation in March 2022 meant that Americans saw a nearly 3 percent decrease in inflation-adjusted wages.”

Egan kept his spin going by making it sound like the contraction should be seen in hindsight. “This is a rear-view-looking number,” Egan said. “This was stuff that happened a few months ago. Uh, the market, economists, the Fed — they’re all focused on what’s happening in the spring and the summer —  how the economy is also holding up with inflation and also these Fed rate hikes.” 

Euro Pacific Capital chief economist is a broker firm Peter Schiff outlined the danger of the current economic situation, making CNN’s coverage look pathetic:

Like I warned, Q1 #GDP has revealed that the U.S. is only half-way to an official recession.

Like I warned Q1 #GDPJust revealed that the U.S. is half-way to an official recession. Expectations of an increase of 1.1% in Q1 GDP were met by a negative 1.4% Q1 GDP. This week’s low interest rate will continue to push the economy towards recession. #recession!

— Peter Schiff (@PeterSchiff) April 28, 2022

Conservatives under attackCall CNN (404-827-1500) to demand that the network tells the truth about the economic woes.