GOP Lawmaker Calls Shrinking Economy “A Good Thing”

A Republican congressman sparked surprise during a CNN interview by framing a recent economic contraction as potentially positive. Representative Kevin Kiley (R-CA) responded to news of a 0.3% decrease in first-quarter GDP – a reversal from the 2.4% growth seen in the final quarter of last year, marking the first contraction since 2022 – with an optimistic interpretation.

During a segment with CNN’s John Berman, Kiley characterized the downturn as “natural” following periods of significant change, suggesting it masked underlying strengths. He argued that a closer examination of the data would reveal a solid foundation for medium- and long-term economic expansion.

Berman pressed Kiley on the implications of the report, noting it predated the full impact of recently announced tariffs by former President Trump, potentially foreshadowing further economic challenges in the second quarter. Kiley largely sidestepped the tariff question, instead highlighting what he described as a positive consequence of reduced government spending. He framed decreased spending as a reduction of “waste, fraud and abuse,” aligning it with broader public sentiment favoring smaller government.

Kiley repeatedly emphasized the need to “dig deeper” into the data, pointing to increases in exports and investment as indicators of future growth. He also touted upcoming congressional action to extend prior tax cuts and introduce new tax relief measures, predicting these would further stimulate investment and job creation.

When directly asked if he considered the report a “good” one, Kiley avoided a straightforward answer, instead reiterating his belief in the potential for “significant economic growth” and asserting that the necessary tools were in place to achieve it.

The exchange highlights a starkly different interpretation of economic data, with the Republican lawmaker seemingly attempting to frame a negative result as a potential stepping stone towards future prosperity. It remains to be seen whether these optimistic projections will materialize, particularly in light of ongoing economic uncertainties and the looming impact of new trade policies.