GOP, White House dispute cause of good GDP numbers

House Republicans and the Obama administration on Friday morning were not in full agreement on the reasons behind the 3.2 percent increase in GDP in the fourth quarter of 2010.

A statement on House Majority Leader Eric Cantor's website said GDP is on the rise in part because of the new House Republican majority, which has "pledged to rein in the size and scope of our federal government which has exploded over the last 4 years." Cantor's "Leader's Ledger" post this morning said it is "time to get serious about cutting spending and growing jobs in the private sector, rather than cutting spending and 'investing' in new government programs." Republicans are vowing to bring a bill to the floor that would cut certain federal spending to 2008 levels or less.

As might be expected, the White House disagreed, and said more spending is needed to support GDP.

"The incentives for business investment will further boost the economy," Austan Goolsbee, the chairman of President Obama's Council of Economic Advisers, said in a blog post. "The administration will continue to focus on actions that the President has recommended to increase growth and job creation, such as providing incentives to encourage businesses to invest and hire here at home, investing in education and infrastructure, and promoting exports abroad."

Republicans and the Obama administration did agree, however, that the deal reached to maintain the Bush tax cuts was a good decision.

"This uptick is no doubt due in part to the certainty that Washington has given the private sector through the recent tax deal," Cantor's website said. Goolsbee seemed to agree, noting that private forecasters think the tax deal "will have a significant impact on economic growth this year."

The Commerce Department reported the fourth quarter GDP numbers this morning, and the 3.2 percent increase lead to a 2.9 percent increase in GDP for 2010.