CHART-- Memo to GOP: Spending cuts SHRINK the economy, undermine growth. Oh, and the U.S. added jobs in January.

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chart spending cuts shrink economy

Via Steve Benen at The Maddow Blog.
The red columns show the economy under the Bush administration; the blue columns show the economy under the Obama administration.

For the first time in years we're seeing a slight contraction in economic growth. Here is an email alert from the New York Times from this morning:

The United States economy contracted unexpectedly in the final quarter of 2012, hurt by weaker exports, a drop in military spending and a slower buildup in inventories.

The Commerce Department said Wednesday that economic output in the quarter fell at an annual rate of 0.1 percent, compared with growth at a 3.1 percent pace in the third quarter.

READ MORE: http://www.nytimes.com/2013/01/31/business/economy/us-economy-unexpectedly-contracted-in-fourth-quarter.html?emc=na

Now before everyone panics, Steve Benen at the Maddow Blog notes that this is not necessarily evidence of a new recession, and on the whole, the report really isn't that bad.

But that won't stop Republicans from playing the Blame Obama game. Did I mention that, per a Fox Business email alert, the ADP National Employment Report shows the U.S. private sector added 192,000 jobs in January, topping estimates of 165,000?

Via Benen:

I realize the right doesn't want to hear or believe this, but when Washington spends far less -- in this case, the cuts focused on defense -- it takes capital out of the economy and undermines growth. It is, as a practical matter, a form of austerity, which hits the brakes on the economy. This is Economics 101 and yet Republicans continue to insist that it is the only policy they really care about.

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