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GDP Rises 2.0% in 3Q

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    Brian Wesbury of First Trust Advisors breaks down the latest numbers on economic growth.

  • Duration 4:08
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Very much of the -- -- on gonna call it tepid at best.

We really do not have a robust recovery simply cannot say that the latest report shows what 2% growth right over the summer -- its.

Join the company is Brian west rate is the chief economist at first trust advisors.

I'm calling it tepid.

I'm saying that it is still the worst recovery from a major recession how do you see it.

You know store right I don't I wouldn't disagree with the word tepid I call at eight.

Plow horse -- economy we've talked about that before it clearly -- in a race orders.

It's -- -- out -- but that the flowers.

Metaphor if you will I think is important because lots of people think.

That just because it's a week.

Means it's about to fall over and that's not true plow horse moves slow.

But it but it's really gets dirty animal it's not gonna collapse just because it's moving slow and that's true of the economy that are growing about 1% let's get now whole Lhasa.

That this is I think the Obama administration's gonna try to spin this at this positively because 2% to has been it in the summer is better than it -- -- -- -- -- never got back.

Because when you look inside this number.

I see a big jump in government spending federal -- -- spending up nine point 6% you'll gonna happening right Hussein.

They -- the numbers.

They knew it was the last big picture report before the elections of one of the that -- -- -- federal money juice it up a little bit and -- about a growth right and you say -- I mean I'm -- they could've done that Stewart I don't know.

But but if you take out government we still grew one point 31 point 6%.

Which is right in line with basically what we've seen over the past three and a half years about two.

Percent growth that's about it and here's how I.

Think we get to that 2% growth on.

One side we have these great new inventions -- nothing to do with the government the cloud.

The Smart -- the tablet this was not billed by government this was built by.

-- Steve Jobs for one but others.

And and it's an amazing new technology but on the other side the counterweight what's keeping us from growing 4% per year.

Is big government is so big we're spending.

More take defense out of the budget and we are spending more as a federal government than we've ever spent before.

And that government spending is killing.

The ability of these entrepreneurs to create growth so -- these to counter opposing forces are why.

We're growing only 2%.

Instead of -- government is.

Robbing us of the benefits of that tech now I want to politicize this for a second and get -- -- is not a full cast of the election.

But -- forecast for next Chia given different election results first -- all right let's assume let's assume that President Obama gets a second Tom.

I think that means tax increases on the rich -- probably -- talk to military spending.

Would you agree with -- and what do you think happens to the economy in 2013.

With -- second Obama -- real fast -- yet what this.

With a second Obama term I think the plow horse continues and it it may slow down too especially with the tax increase.

I still don't think we're gonna go fully off the fiscal -- so I'm not gonna predict a recession for next year but still if planet Hollywood continues okay -- -- yes it is under Obama 2% that's what we go right okay you have Romney -- world works of Romney wins and we get tax reform lower tax rates -- -- office -- -- I think if we can cut government spending that's one of the key things even tax reforms not enough.

We have to cut the size of government I think Romney and Ryan will do that and tax reform.

We could accelerate and and we could be growing at 4% within a couple of years the unemployment rate will be coming down.

One key thing here is I believe there's about.

Three to 5% of GDP.

It's being held back right now businesses are holding back because of uncertainty -- Romney wins that gets unleashed.

And I think the economy accelerate our eyebrows and we have to we hear you loud and clearly eleven days ago Brian west --

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