We Take A Break From Our Usual Terrible Unemployment Rate Stories To Report On Even Worse GDP Numbers

Obama just the other day said "our plan worked" (see video below the fold). Today reality offered its rebuttal.

The U.S. economy grew at an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending. The slowdown in growth adds to worries that the economy could be stalling three years after the recession ended.

The Commerce Department also said Friday that the economy grew a little better than previously thought in the January-March quarter. It raised its estimate to a 2 percent rate, up from 1.9 percent.

...

Growth was weaker mostly because consumer spending slowed to a growth rate of just 1.5 percent. That’s down from 2.4 percent in the first quarter. Americans bought fewer autos, computers and other long-lasting manufactured goods. Spending on services increased.

Consumer spending, which accounts for 70 percent of economic activity, was offset somewhat by a slightly smaller drag from the government. Spending by governments fell at an annual rate of 1.4 percent in the second quarter, just half of the 3 percent rate of decline in the first quarter.

Clearly these numbers have been taken out of context.

Remember that unemployment is a lagging indicator....almost non-existant economic growth last quarter means little if any job growth now.

This word "worked". I do not think it means what he thinks it means.

posted by DrewM. at 08:54 AM

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