OUCH! More Bad Economic News

As summer draws to an end and President Obama wraps up his Martha’s Vineyard vacation, a new government report show more bad economic news.  The American economy grew “much slower than previously thought” last quarter.  From Reuters:

Gross domestic product growth rose at annual rate of 1.0 percent the Commerce Department said, a downward revision of its prior estimate of 1.3 percent. It also said after-tax corporate profits rose at the fastest pace in a year. 

Economists had expected output growth to be revised down to 1.1 percent. In the first quarter, the economy advanced just 0.4 percent. The government’s second GDP estimate for the quarter confirmed growth almost stalled in the first six months of this year.

Earlier this week we learned that confidence in the economy was at its lowest point since President Obama’s first couple of months in office.  And as Heritage experts explain, the pessimism is understandable:

Economists estimate that the natural rate of unemployment is 5.2 percent. If the economy began growing immediately at the same rate the payroll survey reported during the tech bubble (+265,000 jobs per month), unemployment would not return to this level until mid-2014. More realistically, if employers began hiring at the same average rate they did during the 2003–2007 expansion (+176,000 jobs per month), unemployment would not return to its natural rate until 2018.

Given the Obama administration’s record, even the more realistic scenario seems wildly optimistic.  President Obama has overseen record spending and deficits, major increases in regulation and a growing uncertainty among those who actually create jobs.

The pro-growth solutions exist…the question is will the Obama administration embrace them?

Please Share Your Thoughts

4 thoughts on “OUCH! More Bad Economic News

  1. It’s simply time to stop experimenting with Socialism and get rid of these ideologues who want to destroy our great economy. Under this administration we have seen the very natural fruits of Socialism, and Communism…..We need to win some elections on the Right…..The Leftists always lead us to destruction. Am I clear? The solutions are not that difficult. Doug

    • You hit the nail on the head. Socialism has not worked in a good way anywhere in the world where it has been tried and it will nor work in America. We must get back to our traditional way of life. Our next generation of elected officials need to restore our stenghts that made us great. It’s not too late, but we are runing out of time. We cannot afford another 5 years of this downward trend or it may be too late.
      Nov. 2012 will be a crucial turning point,
      My two cents worth!

  2. Pingback: News Updates for the Week of August 29 | Energy Watch

  3. Pingback: News Updates for the Week of August 29 | Energy Watch News

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