Another Friday and another day to come to terms with the reality that the US economy is still very sick:
"The U.S. economy expanded less than
forecast in the first quarter as a smaller contribution from
inventories overshadowed the biggest gain in consumer spending
in more than a year.
Gross domestic product, the value of all goods and services
produced in the U.S., rose at a 2.2 percent annual rate after a
3 percent pace, Commerce Department figures showed yesterday in
Washington. The median projection of economists surveyed by
Bloomberg News called for a 2.5 percent gain. Government
spending fell for a sixth straight quarter."
It means that the US economy is not growing, at least not growing fast enough to offset the recent losses. The recession officially started in November '07 and it ended in June '09. We need the kind of growth that we had in 1983-84 "bounce", or about 8%.
Why isn't the US economy growing? I think that the answer is Pres BO, BO-Care & concerns about new taxes in 2013. We've been operating in a very uncertain landscape and that means that people will hold back. (Professor VD Hanson is right that Pres BO has "investors scared stiff")
Click here for Sunday's show with Bill Katz:
Tags: Don't expect Pres BO to talk about the latest GDP numbers
To share or post to your site, click on "Post Link". Please mention / link to the My View by Silvio Canto, Jr. Thanks!