The national GDP is anemic.
The U.S. economy grew less than forecast in the second quarter, after almost coming to a halt at the start of the year, as consumers retrenched.
Gross domestic product climbed at a 1.3 percent annual rate following a 0.4 percent gain in the prior quarter that was less than earlier estimated, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 1.8 percent increase. Household purchases, about 70 percent of the economy, rose 0.1 percent.
US consumer confidence took another hit.
Consumer confidence dropped last week as Americans’ views of the economy plunged to the lowest level since the recession.
The Bloomberg Consumer Comfort Index was minus 46.8 in the period to July 24, the lowest since May, compared with minus 43.3 the prior week. Six percent of those surveyed said the economy was in good shape, the fewest since April 2009.
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Seniors and the unemployed were among those showing the most negative readings, a sign that partisan wrangling over the nation’s budget deficit was jarring those likely to be affected by cuts in spending. Unemployment above 9 percent, falling home prices and a rebound in gasoline costs may be weighing on sentiment overall, posing a risk for consumer spending.
No one is hiring, and it’s no mystery as to why: The Obama government has shackled business and is threatening or actively punishing business across the board. It is agitating for higher taxes on job creators and entrepreneurs in the teeth of a trashed economy. It emptied the Treasury and created massive uncertainty via ObamaCare and the regulatory state. The Obama government is killing the American dream by strangling the economy. The president’s ongoing campaign of economic sabotage — sorry, “fundamental transformation” — is taking its toll.
Look, no matter which Party you belong to, this is a failure of the present administration: http://www.ctmirror.org/story/13434/reidctimpact
There is absolutely NO REASON at this final hour to see the WH addressing the fundamental flaw. After all this time, no specificity on the cuts in spending? No real examination of the basic assumption BOTH bills make, particularly the projected savings in the Senate Bill? I cast the blame on Obama, not because I vote Republican, but because this economic stewardship was the horse Obama road in on. It is not like the debt debate and the spending behavior are not the greatest domestic issue going into the election on 2012. The WH doesn’t vet both approaches 24/7 as a public service to spur compromise? Growth tips down, unemployment tips up, credit hangs in balance and like the Healthcare Bill, the administration is playing the role of Bad conductor with no original thoughts of their own. Indeed, this has become the “habit”.
This is not a partisan issue form Independents. I say I think the blame leans towards Obama because he has never demanded transparency, offers little clarity himself, often pushes unvetted numbers and projections and so far, has not made a case for his strategic thinking.
But make no mistake that if “hobbits” derail this necessary compromise and turn the next year into free fall in order to win the WH back, they are completely mistaken. The Democrats still have the balance of power and it is better to allow them responsibility for the mess another year, that further enable our decent no matter concern over our present trajectory.
If a compromise in which the Republicans yielded turns out a sham, Independents will certainly understand why the GOP refused to risk calamity just in order to make a statement. They actually will have a chance to unseat Obama. If they share equal blame now, Obama will have the last laugh. YOU decide.
This is the witching hour and I hope common sense and purpose prevails, -on both sides. I couldn’t care less right now which side has better talking points. Don’t tread on me……..
HABIT
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HOBBIT
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The entry was about the stalled economy, not about the debt ceiling legislative maneuvering.
The Obama administration “is agitating for higher taxes on job creators and entrepreneurs in the teeth of a trashed economy.”
Oh, those poor “job creators”! (As Jon Stewart has observed, it is now forbidden for the Right to use the term “rich.”).
This from today’s Wall Street Journal:
“Despite the weak economy, the number of millionaires in the U.S. and their combined net worth hit record highs in 2010, with investible assets up more than 8.4% from 2009, according to the World Wealth Report by Merrill Lynch and Capgemini.”
Tax them at 100%, it won’t pay off Obama’s deficits. You got anything else?
Those rich scum! Let’s not only increase their taxes. Let’s confiscate all their belongings. Seizure of all the assets of the rich should delay the Democrat’s US debt default till, oh, say, next Thursday and thus give Blarney Obama time to demonize something else we all know to be evil, like big business.
Your aware, I’m sure that the rich didn’t get to be rich by being stupid, and the “poor” didn’t get there being smart (aside from the few to which “stuff happens”).
When the crap hit the fan, the rich didn’t sit back and watch and whine, like their opposites. That ties with Census data from the past three censuses (1980, ’90, 2000):
Top and bottom 10% of earnings:
The top 10% watches ~5 hours of TV each week (and it’s mostly educational), the bottom 10% watches 42 hours (mostly crap).
Top 10% reads 15 books per year, bottom 10% read about one, frequently fantasy/fiction.
The top 10% has 1.3 kids, typically after four or more years of marriage; bottom 10% had ~4, frequently at the start of marriage, but well over half not married or never married.
And on and on, and on…
The top 10% don’t need subsidies, but they don’t need interference from a bunch of parasites, either.
So, Joseph, are you SMART, or just a parasite?
Needless to say, good analysis. What a President!
Just wait until the rest of Obamacare takes hold including the hundreds of billions of tax increases.
“There is absolutely NO REASON at this final hour NOT to see the WH addressing this fundamental flaw.”
It would help if I did a better job proof reading —sorry
Joseph,
You made a good point which only amplifies mine. Why hasn’t Obama identified “rich” from “job creators” after three years? Large corporations are sitting on the sideline with enormous reserves of cash. They only are concerned with placing the right bet for their shareholders. In fact, the stimulus was supposed to target help for the latter. Americans of both Parties were ready in 2008 for Wall Street Reform and the closing of loopholes major corporations were exploiting. Indeed, the very rich have gotten richer.
The populist rage was clear on both sides in 2008. TARP was a BUsh solution. The Republicans have been foolish not to separate major corporations from small business and the Democrats were insane not to do the same. Small Business drives employment but the Healthcare Bill and the Stimulus Bill (and now in this debt debate) fail to separate Middle Class anger and small business growth from free passes for the corporate world and lack of reform for entitlement programs at the brink of failure. Great job on de-toxifying those bad properties Mr. President. This failure threatens both Parties, but the blame must fall on the orchestrator-in-chief provided the Republicans are not seen by Independents NOW as encouraging calamity for their partisan dreams. Obama has failed to clarify the issues and has really played a poor role in elevating informed debate. It would be a strategic mistake for conservatives not to consider their polling data.
And again, NO TAX INCREASES for anyone? Cutting taxes and spending is the economic policy? I would think any reform would be far more complex because the drivers and their relationship to one another is very complex. There is nothing I see in the “market” that would suggest such essential reform is part of the “market’s” function. That role IS why we have government and the debt crisis and this economic debate is perhaps the single most element to advancing our leadership and national security….
-a role that even Republicans say is the province of government.
Maxtrue: While corporations may be flush with cash, their net worth is still in lousy shape. (Do not confuse cash with net worth.) That is one reason they’re not hiring. Also, O has introduced a lot of uncertainty into the economy. I would point to three things he’s done to increase uncertainty: Obamacare, Dodd-Frank and an out of control EPA that is threatening to institute cap ‘n trade through regulation. Also of late, there is a possible fourth: An out of control NLRB. Uncertainty is not good in a really sick economy as ours.
BTW – Those GDP numbers: they’re worse then they look. Final sales, which is GDP less inventory change, grew by 0.0% in the first-quarter and by 1.0% in the second quarter. That means some of the increase in the first half of year is inventory accumulation, and if demand doesn’t pick up in the second half, companies will produce less to restore their inventory/sales rations. I don’t think the second half is going to see very good growth in GDP.
I am officially FOR gutting the non- essential functions of government as of this weekend. I talked to a long-term democratic not professional strategist, but I must say, I hear him talk, and three days later on the news, I hear the same points being made- he originates them…..
He said were he Obama, he’d go in and say ” so, you want cuts. I have cuts: social security checks, military paychecks, the VA hospital system, shut down the post office, fire all the air traffic controllers, quit highway pavementing, stop farm supports- and call all their loans, immediately.” That shuts down continental travel, communications, our armed services…..
Officially, I literally want to take away every little bit of power that can make a citizen of our country willing to shut down the minimum amounts of federal duties, so they can keep their welfare checks going out. It was the most stunning blackmail I have ever seen.
So, the guy who shuts down the bread and circuses- I’m voting for him or her.
Considering that those GDP numbers are inflated via the government spending portions of the measurement, the REAL, PRIVATE SECTOR GDP growth is flat or even NEGATIVE.