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Economy growth below projected numbers

August 2, 2011 by  

The economy moved downward in the second quarter.Second quarter numbers show that the economy has slowed to its worst pace since the end of the recession, according to The Associated Press. High gas prices and a lack of income improvements have caused consumers to cut back on spending.

The GDP increased 1.3 percent from the first quarter, according to Bloomberg. The median forecast of economists surveyed by Bloomberg showed a 1.8 percent increase.

Government spending has also fallen for the third straight quarter. State and local governments have also cut spending in seven of the past eight quarters, according to the AP.

Higher prices on necessities have forced the economy’s growth to slow down considerably. The climb in food and energy prices is driving down the spending on non-essential items.

“This is the worst of all worlds for investors, certainly the worst of all worlds for the Fed,” John Silvia, chief economist at Wells Fargo Securities, said to Bloomberg. “A little too much inflation, not enough growth, that is a tough scenario in the U.S.”

According to the news source, another factor in the lower-than-projected growth is the unemployment rate climbing to 9.2 percent in June.

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  • http://aol.com sean murrey ILLInio

    i am on a budget i only get what i need.

  • wasadoc

    Ditto what Sean said–it ain’t gonna get no better, folks. We have been completely sold out by Washington.

    • Warrior

      There is a full assault going on right now, by the “progressives”, on the remaining private sector of this country. Every dollar that it takes to fuel this charade has to come from the private sector. Any guvmint employee that is unfortunate to have to give back any of their guvmint earnings is simply rebating back a portion of what was already taken from the private sector.

      Remember this. The guvmint cannot create productive jobs, it can only destroy and it’s doing a damn good job of it.

  • Wapitiman

    What a sad joke all this government BS is ! We are facing a depression which will make the last one look like a party. And our esteemed elected misrepresentatives spoon feed us the crap that this is only a recession and we are climbing out of it ! Manufacturing is the main creator of wealth folks. And we have chased tons of it out of the country via excessive union wage demands, overbearing federal, state and community regulations, licenses, inspections and taxes. Who in their right mind would want to start up a business here under this climate? The result…two million people unemployed…thousands of young folks getting out of college (owing a ton of money) and no jobs !
    Where will it end? I hope to God I’m wrong, but my extrapolations point to WWIII. The pot is beginning to boil. It’s a matter of choosing up sides. Then millions of unemployed will have a job…carrying a gun !
    The hardest analysis I have had to cope with is the saying that: We deserve the government we get. Perhaps a people more concerned with American Idol than American gumption and creativity deserve what we have brought forth in our “leadership”!

    • tsunami

      Sir/Madam I am Canadian and read your post and it is the best damn thing I have read on this subject in a long time.

      Wapitiman for President and your analysis of why your major companies are running for the hills is bang on.

      When you analyse the bulk of your majors who are making huge profits, they are doing so with their offshore operations not their domestics.

      There is a cobalt mine starting up in Idaho (Maybe). Cobalt is a strategic mineral (planes, jet engines, high tech stuff etc.) and you do not have any domestic production of this currently. It took approx 7 years to get all the permits necessary to start development of this mine. Regulation and enforcement for sure, but this is just plain nuts.

      Studies, meetings, public meetings,every environmental group in the country gets to take it to court, EPA, Blm, forest management, water protection, State duplication of Federal groups and on and on.

      These mines will create hundreds of jobs in your country for your people in areas that need them, not to mention the taxes that will be paid. Sure do the inspections and close them down if they are in violation of your laws but don’t try and stop them before they even turn a shovel.

    • Ellen

      You are so right. We do ridiculous things. If we want to stop relying on foreign oil, we should drill more domestically. Obama won’t let us. If we want to drastically cut our energy use, we need to simply change the building standard for insulation. Heating & air conditioning are our biggest expenses and they would be reduced if our buildings were better insulated. We have immigration laws we don’t enforce and have let illegal immigrants negatively impact our school systems/local govt budgets/medical system/criminal justice system/etc. Why? We are not morally responsible for these people? We let people abuse our welfare system which now costs over $1 trillion per year. Who benefits from that? Not the person who can’t get themselves out of the welfare cycle and not the taxpayers that fund it. They, too, negatively impact the same areas as illegals. We required mortgages be given to unqualified people then bundled those mortgages and sold them as investments and backed them with taxpayer money. Why were they not sold similarly to junk bonds, as they were junk mortgages? Why do we keep over-vaccinating our kids when we’ve seen that we are damaging their DNA? Oh, we’re supposed to believe that’s not true and that those vaccines are necessary and safe. Why do we have duplicate govt agencies? So much govt waste? So much fraud? With all the stupidity of our govt, they want us to trust them in their economic predictions?!

      • Mike in MI

        Ellen – RE the vaccination horror being played out in our children.
        The whole thing is an FDA set up to produce sick people who require the services of the medical system and -voila- more drug sales. This perversity exists because the FDA and BigPharma work hand in glove to increase demand for drug sales.
        The stupidity is fueled by payoffs to legislators from lobbyists seeking favor and legislation in their favor via the devilish FDA bureaucracy.
        The real crime is that people – infants included – could much more easily and safely achieve better disease protection by the simple and inexpensive expedient of making nutritional preparations available. The simple fact is that nearly perfect immunity is achievable if one gets his blood levels of inexpensive vitamin D3 high enough – which is very easy to do, painless, yields broad immunity and is non-toxic. In fact it is needed for proper development of the skeletal, immune and brain systems. One of the major causes of our medical crisis is peoples’ immune systems’ weakness due to damage from vaccine programs administered before an infant’s system is allowed time to mature properly after birth. Thus begins the life-long parade of doctor visits, resulting in more and more unresponsive diseases.

    • DanB

      I think it could have been a simple recession, a deep one but still a recession. However, in panic mode (and some by design) politicians took our economy on a roller coaster ride that practically guaranteed that instead of popping out of a recession that it would drag on and the odds of an extended depression grew. Since politics isn’t changing. The Tea Party may be too little, too late to save America, I am guessing that the future is sure. Depression and Wiener Republic repeat?

  • TIME

    Say it’s not so Joe?
    How can we have such slowed growth when the special political class keeps saying everything is BOOMING along so fine…

    Looks like someone is telling a BIG LIE.. Oh, who could it be?

    • Mike in MI

      TIME – Lemme guess…uhm-m-m-m, the Conmandrear-in-Chief? The Lieder to the Western Nations, the Grand Poobah of Poo, his ro’all Oblama-lama-ding-dong-ship.

  • s c

    People, did you know that Uncle Scam thinks it’s more important for him to find reasons to “persuade” companies to move overseas? That means we are STILL sending factories AND JOBS out of America.
    Did you forget that GB has been out of office for more than two and a half years? Who’s in the W H NOW, and WHO thinks Americans don’t need factories OR jobs? Aha, you guessed it. Obama, Alinsky’s gift to an enslaved America, doesn’t want factories OR jobs in America unless they serve to keep him in office.
    Labor unions are in the deal, and what they don’t realize is that there is a price to pay for being in bed with politicians. The United Mine Workers, to be specific, are about to find out who their friends are [and who their friends ARE NOT] when the coal industry is RAPED to please the Bummer.
    Mr. Prez, if you have reasons to keep JOBS AND FACTORIES out of America, then the very least you can do is ADMIT that you’re a DOMESTIC ENEMY, and that we’d be crazy to see you as a friend or a TRUE president.

  • FlaJim

    What ‘end of the recession?’ I’ve been paying close attention and seen no evidence of any ‘end.’ Unemployment continues to increase and consumer spending continues to decrease relative to inflation.

    Could I get on the list to be notified next time this happens so I don’t miss out?

  • jay Lindberg

    I’m in the solar industry or should I say the Solar Installation industry because very little of the manufacturing is actually done in America. We get a 30% government grant for commercial solar projects and the components are made in China. Does anyone see a problem here besides me? We could have easily tied the grant to American made products and created 10s of thousands of American manufacturing jobs in the process. But we didn’t. What’s wrong with this picture?

    We have stimulated to Chinese economy to the point where we are chocking on the !@#$ they shoved up our #$%.

  • Steve

    First quarter 2011 GDP has been revised from 1.3 percent, as you report, to 0.4 percent, as of last Friday. It’s worse than you report. And the second quarter will most certainly be later revised to below what the government has claimed.

    Obama Jobs Czar, General Elictric CEO Jeff Imfelt closed the last incandescent light bulb manufacturing plant in the U.S. Imfelt has just announced that GE will ship 1000 jobs and their X-ray tech manufacturing plant to China, along with a $2 billion dollar investment to pump up the Red Chinese economy. And don’t forget that GE paid NO federal income taxes in 2010.

    JOBS CZAR ? What – Chinese Job Czar?

    This alone should tell us that this conspiracy to bankrupt America is not just limited to politicians and bankers. There are corporate business people involved
    along with the social justice commies.

    This country better wake the hell up and get this Kenya Keynesian impostor the hell out of the White House before we have to take our country back by ARMED FORCE.

  • Steve

    Sorry General Electric typo

    • http://lives RAYMOND HARBIN

      STEVE, YOU GET RIGHT DOWN TO THE PURE, UNADULTERATED, UNTINCTURED, UNAPOLOGETIC, VIRGIN-VIRGIN FACTS–DON’T YOU BUDDY?

      AND ALL TRUE AMERICANS APPLAUD YOUR TRUTH!!!!!

      • http://lives RAYMOND HARBIN

        AND, STEVE– ONE MORE THING, I LOVE YOUR “KENYA KEYNESIAN” APPELLATION FOR BARACK– RATHER ARCANE FOR MANY– BUT FOR ONE WITH A PHD IN CLASSICAL THEORY–IT IS A CLASSICAL NAME. NONE OF MY UNIVERSITY STUDENTS EVER DISPLAYED SUCH IMAGINATIVE PENMANSHIP!!

        • Steve

          Thankyou, Raymond. It’s a pleasure to hear that there is a professor out there actually giving his students an alternative view of reality.

  • http://lives RAYMOND HARBIN

    THE AMERICAN PEOPLE HAVE KNOWN FOR THREE YEARS THAT OUR PRESIDENT IS EXTREMELY ALLERGIC TO TRUTH. IT DOES NOT SIMPLY BRING A RASH OR CAUSE A STOMACH PAIN: TRUTH CAN KILL OBAMA, AS RAPIDLY AS DRINKING A PINT OF CYANIDE CHASED BY A PINT OF ARSENIC TEA.

    BUT WHAT OF THE OTHERS WHO LIE ENDLESSLY, EITHER SELF FABRICATING OR REPEATING LIES OF OTHER.

    ANYONE WHO STATES THAT WE ARE GOING INTO A “NEW” RECESSION IS EITHER VERY SUPERFICIAL, INSANE OR INTENTIONALLY PARADING POLITICAL FABLES. HOW DO YOU “GO BACK” INTO SOMETHING FROM WHICH **YOU HAVE NEVER COME OUT **??

    HOUSING HAS BEEN THE PRIMARY ENGINE THAT HAS DRIVEN THE AMERICAN ECONOMY FOR MORE THAN FIVE DECADES. THIS COLLAPSE HAS PULLED MILLIONS OF HOUSING-CONSTRUCTION DEPENDENCIES DOWN WITH IT.

    THE INDUSTRY THAT HAS BEEN MOST DIRECTLY AND QUICKLY KILLED IS THE AMERICAN LUMBER INDUSTRY, WHICH BEGAN DYING IN 2006, AND CONTINUES TODAY– AND ONLY 18-20% OF THE EAST AND WEST COAST LUMBER MANUFACTURES, ARE STILL ALIVE AND THEY ARE DYING AT THE RATE OF 3% PER ANNUM.

    AMERICA HAS SOMEWHERE BETWEEN 3.7 AND 4.2 MILLION HOMES SITTING, UNOCCUPIED– BOTH NEW AND REPOSSESSED– AND SOME OF THE NEW, NEVER OCCUPIED HOMES WERE BUILT IN 2003–2004. THESE NEW HOMES ARE NOW IN GREAT NEED OF MAINTENANCE AND WOOD WORKING PAINT , AND HAVE BEGUN TO ROT, BECAUSE THE FAILING BANK OWNERS DO NOT HAVE THE FINANCIAL RESOURCES TO KEEP THEM UP. THESE ARE SELLING FOR 45–65% OF THE PRICE OF A NEWLY BUILT HOME– AND THE PRICES ARE DROPPING MONTHLY. WHO IS FINANCIALLY INNOCENT ENOUGH TO BUILD A HOME.

    THE ABOVE WAS CAUSE BY DEMOCRAT PARTY SOCIALISTS, WHO DURING THE LAST THREE YEARS OF THE BUSH PRESIDENCY, PRESSURED AMERICAN BANKS TO APPROVE THE CREDIT OF PEOPLE WHO HAD NO PRAYER OF PAYING FOR IT–AND MANY NEVER HAD ANY INTENTION OF PAYING THEM. THEIR MARXIAN CONCEPT WAS THAT EVERY0NE ALIVE HAD A ***RIGHT*** TO HAVE A NEW HOME.

    THE HOUSING DEBACLE IS BEING CHALLENGED FOR OUR WORST ECONOMY KILLER BY A TOTAL LACK, AMONG SMALL BUSINESS OWNERS. OF FAITH OR CONFIDENCE IN BARACK OBAMA.

    ANSWER THIS QUESTION: WITH OBAMA AS THE COUNTRIES LEADER, WOULD YOU, AS A SMALL BUSINESS OWNER, DARE SPEND YOUR MONEY–PROBABLY COLLATERALIZED BY YOUR FAMILY’S HOME, TO INCREASE YOUR BUSINESS BY HIRING NEW PEOPLE??

    SUCCESSFUL BUSINESS OWNERS ARE SELDOM THAT STUPID–SO THE DEPRESSION CONTINUES, AND OUR ECONOMY SUFFERS MORE.

    • Christin

      RAYMOND,

      With all due respect, the ‘Housing Debacle’ was started under Demo and Bilderburg Billy Clinton and pushed by his Democratic/Socialist Congress people…

  • Rick

    I was going to say, I must have missed that “end of the last recession,” as my reality is the depression that began in end of 07 and was jet fueled from 08 on.

  • dennis

    I FEEL WE ARE ALREADY IN A DOUBLE DIP. THINGS ARE GETTING BAD VERY FAST. HOLD ON FOR WILD RIDE

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