By FITSNews || The U.S. economy grew by just 2.4 percent during the second quarter of 2010 – a sharp decline from the first quarter’s 3.7 percent growth rate and the latest sign that numerous expensive government interventions have failed to “stimulate” the economy.
The estimate – released Friday by the U.S. Department of Commerce – will be revised in the future, although with numerous other indicators heading in the wrong direction (housing, durable goods, consumer confidence, etc.), it’s unlikely that the revision will be positive.
Christina Romer – top economic advisor to U.S. President Barack Obama – referred to the 2.4 percent figure as a “solid rate of growth,” although business leaders and economic policy analysts were quick to dispute that characterization.
“The post-recession rebound is history,” said Bart van Ark, chief economist at the New York-based Conference Board. “We don’t foresee a double-dip, but we do expect growth to slow even more markedly, to a 1.6 percent annualized rate in the second half of the year. Such a slower pace is unlikely to sustain strong profit growth, and would also weigh on employment and wages.”
Translation?
Job growth – which drives consumer spending – isn’t likely to come back anytime soon. That means the 8 million Americans who lost their jobs over the last two years are pretty much hating life.
Not surprisingly, liberal economists viewed the news as an excuse for further “stimulation.”
Ironically, Obama spokesman Robert Gibbs blamed the European debt crisis as one of the factors creating “headwinds” against a full-fledged recovery – echoing comments made last week by Federal Reserve Chairman Ben Bernanke.
What caused the crisis in Europe? Excessive government borrowing to support welfare state entitlement spending … not unlike the $2.5 trillion socialized medicine plan that Obama and the Democratic leadership forced through the U.S. House back in March.
By carl the greenskeeper July 30, 2010 at 2:44 pm
I was busy cutting the greens and edging the flower beds, did the economy slow? I hadn’t heard. But, you know, the weedeater is loud, so I might not.
By snodgrass July 30, 2010 at 3:35 pm
“We have met the enemy, and he is us.”
– Pogo
By Crooner July 30, 2010 at 4:48 pm
“Consumer spending accounts for the bulk of economic activity”
This quote from the AP is why extending unemployment benefits and considering additional stimuli make sense.
By James the Foot Soldier July 30, 2010 at 5:04 pm
The Obama Miracle: how to spend a couple TRILLION dollars and watch the economy tank.
Not even Jimmy Carter was able to “achieve” such misery.
By James the Foot Soldier July 30, 2010 at 10:48 pm
Crooner, our beloved communist believes it perfectly acceptable to transfer wealth from the productive members of society to the non-productive for an infinite amount of time.
Why not just let the productive folks spend what they have rather than funneling it through an ineffienct gub’mint wealth transfer scheme??
Wouldn’t their spending be just as stimulative?
WTF – explaining economics to communists/democrats only contributes to global warming….
By Joe July 31, 2010 at 12:31 am
“This quote from the AP is why extending unemployment benefits and considering additional stimuli make sense.”
Yeah…that’s worked so well up to now, let’s keep doing it. (rolleyes)
By Right Field July 31, 2010 at 6:26 am
If everyone is poor & desperate then everyone is a Democrat! Job done!
By GDI July 31, 2010 at 11:39 am
If you go far enuff left and far enuff right, the 2 ends meet. One end is dictatorship of the proletariat, one is dictatorship of the elite. Same result, different place to spend the money. What ever happened to the middle of the spectrum, where most Americans are? Hell, idealogues on either end are equally dangerous, but that’s all you hear speaking out and anyone not out on their end of the spectrum is, a priori, wrong. Demagoguery is alive and well.
By No Name July 31, 2010 at 11:41 am
Ring Ring
Hello…what
Everything that comes out of DC is either wrong or a lie.
Really….why….because both parties are filled people who love the fact that they have a system that keeps them in a position of power and ability to take unlimited amounts of tax money or when they need too…..like now….just ask helicopter Ben to print up some more….because the Ivy Lick economic theory says that they “Keyn” and not only get away with through artificial prosperity that garners support from the self interested welfare citizien or welfare corporate queens.
Ron Paul has said this for years……..but Bobby invited Ben and Lindsey and Jimmy C……welll that just says it all does it not.
Enjoy the surf.