Sunday, July 31, 2011

While Republican Ponder Whether or Not the U. S. Should Pay Its Bills, Economic Conditions Worsen

Is Anyone Paying Attention? No, Guess Not

Buried in the Friday July 29 debt ceiling/deficit reduction fiasco was the other fiasco that is the U. S. economy  The 2nd quarter GDP numbers were released and not only did they show very low growth in the quarter just ended, the growth for the previous quarter was revised downward by a significant degree.

The combined growth for the first six months of the year was the weakest since the recession ended two years ago. The government revised the January-March figures to show just 0.4% growth — down sharply from its previous estimate of 1.9%.

The weakness in the economy is broadly based.  Consumer spending is weak, investment spending is weak, government spending is weak and personal income is not rising.

The revision also showed that the Great Recession was worse than previously reported

The government also revised data going back to 2003. The data show the recession was even worse than previously thought. The economy shrank 5.1% during the recession, which lasted from December 2007 through June 2009, compared to the earlier estimate of 4.1%. Both figures represent the worst downturn since World War II.

Debt ceiling photos obama boehner unemployment wallstreet foreclosure homeless stocks 14 20110209
Job Applicants - Not Worried About
the Debt Ceiling

Yes, you are reading that correctly.  The Great Recession ended two years ago.  Really, that’s what all the experts said.  That’s why they are called experts.

Ok, but somebody needs tell that to these people.

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