The Norman Transcript

Editorials

Discussion

February 11, 2013

Decline in GDP serves as message to Washington

The Norman Transcript

NORMAN — The nation’s economic data revealed a surprise for the last three months of 2012. America’s Gross Domestic Product, the broadest measure of economic activity, fell slightly in the final quarter of the year.

While the decrease was a small 0.1 percent, it definitely is not the direction we want to see the economy heading.

We suppose you can take comfort in the assessment by many economists who said that data was a bit of a fluke. Two key areas weighing heavily on the GDP figure were a drop in inventories — likely linked to the Christmas season after merchants had built up supplies — and a decrease in government spending. That’s something not expected to reoccur.

But is that true? Remember all that talk at the end of the year about the fiscal cliff and scheduled cuts in government spending if Republicans and Democrats couldn’t get their acts together in Washington? The deadline for those cuts was delayed for a couple of months, not resolved.

It’s worth asking why consumers, amid an apparent recovery, would express a lack of confidence. The explanation is obvious: Consumers were reacting to the nonsense in Washington. The fiscal cliff debacle would shake anyone’s confidence in this nation’s political leadership.

That’s the lesson here for federal officials. They may like to posture for their perceived constituencies. But we suspect those constituencies will evaporate if Washington’s intransigence produces a return to recession.

What happens in Washington isn’t simply politics and entertainment. It plays a major role in terms of where the nation as a whole is headed.

If individuals and businesses are worried about government direction (or the lack of one), they will scale back and go into defensive mode. That will have harmful consequences.

Meanwhile, we also would point out last quarter’s GDP decline was linked to decreased government spending. For America to reduce its deficit, federal spending cuts are necessary.

But they need to proceed in a rational, sensible manner. Haphazard actions such as the fiscal cliff aren’t the results of sound public policy. They are symbols of failed leadership.

— New Castle,

Pa., News

For local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.

Text Only | Photo Reprints
Editorials
  • A short drought reprieve

    Oklahoma’s current respite from the drought may be short-lived. We’ve yet to reach 100-degree days where water use hits the peak and Norman turns the valve to buy water from Oklahoma City....

    June 18, 2013

  • Summertime warnings

    State and local health departments are sending out summer activity warnings. In recent weeks, we’ve received rabies, mosquito and teen driver warnings....

    June 18, 2013

  • Norman by the numbers

    Quick. What’s Norman’s current population? As of this week, city officials set the mark at 114,450. It seems like only months ago, we were passing 100,000 residents, including University of Oklahoma students....

    June 14, 2013

  • Court’s ruling ensures state has water access

    The U.S. Supreme Court’s ruling Thursday, denying Texas access to Oklahoma water flowing within our state will help ensure the state’s water supply for generations to come....

    June 14, 2013

  • Live, die by sales tax

    Norman’s on-again, off-again love affair with the municipal sales tax has taken a hiatus. The numbers are up only slightly and less than what was projected in the city’s fiscal budget....

    June 13, 2013

  • A needed extension

    Gov. Mary Fallin took another walking tour of damaged Moore neighborhoods Wednesday. It comes as the governor requested and was approved for an extension of the federal major disaster declaration....

    June 13, 2013

  • Heat arrived suddenly

    The heat, which had stayed away from Oklahoma for most of May, has caught us by surprise this week....

    June 12, 2013

  • Meth addicts getting notice about law

    Oklahoma was one of the leaders in limiting sales of over-the-counter medicine containing pseudoephedrine. Meth cooks learned long ago that they could manufacture methamphetamine with cold pills and a few other ingredients....

    June 12, 2013

  • NSA spy case begs review

    The disclosure of widespread surveillance of Americans’ phone records and of Internet data on foreigners and some Americans has created strange bedfellows among critics and defenders....

    June 12, 2013

  • Storm chasers, safety

    The death of four storm chasers in Oklahoma last month has raised new questions about the practice that became popular with the movie “Twister.” Three scientists and one amateur tornado chaser died in the tornado that came through El Reno ...

    June 11, 2013