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Q1 Growth: Not “Rainbows And Unicorns”




|| By FITSNEWS ||  Ordinarily there’s nothing we love more than saying “told you so.”  It feels good to be right … to have one’s opinion validated.  Or at least it usually does.  This is one of those times we honestly wish we’d been wrong, though.

As we noted back in January – when we rebuked the breathless economic optimism of the “rainbows and unicorns” crowd – the fundamentals of the American economy remain weak.  Too many working age Americans are out of the workforce.  Wage growth is nonexistent.  And government continues to over-spend, over-tax and over-regulate.

“In lieu of a real jobs recovery – one in which the labor pool expands courtesy of better paying, full-time positions – we remain pessimistic about the promised consumer renaissance,” we wrote at the time.

Well guess what … in keeping with dismal retail data, the Atlanta Federal Reserve is now forecasting the U.S. economy to expand at a ridiculously weak 0.2 percent clip in the first quarter.  Less than a month ago, that estimate stood at 1.2 percent.

Ouch, right?

Right …

And so much for those gasoline savings.

Look, we’ve said it before and we’ll say it again: Until leaders of both parties (at all levels of government) choose to rein in public sector spending and fully embrace the free market: Nothing is ever going to change.

Well … things will change … just not for the good.

Listen to us now, hear us later …