I think it shrank because new manufacturing was virtually non-existent, as company owners are holding off on new investments. Trillions of dollars are outside the country due to our high corporate taxes and if that simple measure was taken - to reduce our corporate tax rates to be competitive with the rest of the countries in the world- money would begin to come home.
Obamacare mandates going into effect between now and 2014 have those who would otherwise expand their businesses and hire more employees holding back and taking a "wait and see" approach.
The first thing out of the mouths of Democrats and the president's own press secretary was to blame Republicans for the dismal numbers released Wednesday. The business communities across the country see that attitude and are not encouraged to have much faith in the political climate changing before 2014.
Republicans are being blamed for the Obama economy after 4 years in office! One more quarter of negative GDP growth and we'll be in another recession.
