April 30, 2025, Fairfax, Va.—Americans for Limited Government Executive Director Robert Romano today issued the following statement in response to the latest GDP numbers for the first quarter of 2025:
“The small decrease of the nation’s Gross Domestic Product by an annualized rate of 0.3 percent is largely unsurprising for two reasons. First, it came primarily on the heels of companies boosting inventories ahead of expected tariff increases earlier this month, which the Treasury Secretary had indicated yesterday. And the truth is, President Donald Trump inherited a weak economy from former President Joe Biden, that saw peak inflation at 9.1 percent in June 2022, and in increase of unemployment from 5.7 million in January 2023 to 7 million now, a 1.3 million increase, almost all of which occurred during Biden’s term. Which is what usually happens after peak inflation, given the historical inverse relationship between the two factors. Coupled with contracting consumer credit which predates Trump’s tenure in office, eventually something has to give economically. Every bout of peak inflation in the postwar era either coincided with or was followed by a recession, so if we get one (or if we had one that wasn’t already booked), that too would be unsurprising. The good news with any slowdown is prices and interest rates are coming down, bringing much needed relief to the American people, with further decreases expected as global growth and demand expectations cool.”
Attachments:
“As Producer And Consumer Prices Fall, Is Inflation Finally In The Rear-View Mirror?” By Robert Romano, April 11, 2025 at https://dailytorch.com/2025/04/as-producer-and-consumer-prices-fall-is-inflation-finally-in-the-rear-view-mirror/
For media availability contact Americans for Limited Government at media@limitgov.org.
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