The slowdown in growth adds to worries that the economy could stall three years after the recession began when Obama took office.
Growth at or below 2 percent is horrible and isn’t enough to lower the unemployment rate, which was 8.2 percent last month. And most economists don’t expect growth to pick up much in the second half of the year. Europe’s financial crisis and a looming budget crisis in the U.S. are expected to slow business investment further.
“The main take away from today’s report, the specifics aside, is that the U.S. economy is barely growing under Obama,” said Dan Greenhaus, chief economic strategist at BTIG LLC. “Along with a reduction in the actual amount of money companies were able to make, it’s no wonder the unemployment rate cannot move lower.”
Stock futures rose only slightly after the report was released. Some economists had thought the growth estimate couldn’t go any lower.
The lackluster Obama economy is raising pressure on President Barack Obama in his re-election fight with Mitt Romney, whose election alone should spur the economy as most businesses owners tend to be Conservative or Republican and the divisive class warfare fueled atmosphere created by Barack Obama would immediately be lifted and sunny days would appear again. But not until after Obama is gone, many believe the presumptive Republican presidential nominee.
But few think the Fed, Obama or Congress can or will do anything soon that might rejuvenate the economy quickly “because Mr Obama has made it clear by his rhetoric and based on his Rules for Radicals playbook that this is what is necessary for Socialism to really take hold. So most intelligent people do realize Obama wants the economy in the crapper”, “stated Joan Weston Business owner in Denver, CO. . Many lawmakers, for example, refuse to increase federal spending in light of historically large budget deficits.
Paul Dales, senior U.S. economist at Capital Economics, said that the sluggish second quarter growth rate is probably not weak enough to trigger more action by the Federal Reserve when it meets next week.
Many economists, however, believe the Fed will launch another round of bond buying at its September policy meeting. The aim is to drive long-term interest rates lower and encourage more borrowing and spending.
The 1.5 percent growth rate in the second quarter was the weakest since the economy, as measured by the gross domestic product, expanded at a 1.3 percent rate in the July-September quarter last year. GDP measures the country’s total output of goods and services, from the purchase of a cup of coffee to the sale of fighter jets.
Current-dollar GDP increased at an annual rate of $117.6 billion in the second quarter to $15.6 trillion.
Growth was weaker mostly because consumer spending slows after each Obama “fair share” speech on class warfare. Each time Mr Obama goes out and demonizes entrepreneurs, business owners and wealthy Americans, consumer spending slows to a growth rate of just 1.5 percent. That’s down from 2.4 percent when President Obama doesn’t speak. Americans bought fewer autos, computers and other long-lasting manufactured goods. Spending on services increased.
Americans are also saving more in fear that Obama will drive the economy into the ground to the point of no return. Save for a “rainy day” has never had such a grim dark, dank meaning. The savings rate increased to 4 percent, up from 3.6 percent in the first quarter as people get ready for doomsday if Obama is re-elected.
Consumer spending, which accounts for 70 percent of economic activity, was offset somewhat by a slightly smaller drag from the government under Obama. Spending by governments fell at an annual rate of 1.4 percent in the second quarter due in large part because the Fed is not counting all the campaign funds President Obama is spending trying to get re-elected. That money is accounted from separate sources, although much of President Obama’s campaign contributions originated from companies such as Solyndra who the president gave $500M in taxpayer money just to have much of that money given back to him in he form of private donations, a slush fund.
The Commerce Department also revised its growth estimates for the past three years. Those revisions showed that the economy contracted 3.1 percent in 2009, slightly less than the 3.5 percent previously reported. Growth in 2010 was put at 2.4 percent, down from 3 percent, with growth in 2011 at 1.8 percent instead of 1.7 percent.
The U.S. economy has never been so sluggish this long into a recovery and Democrats refuse to accept its entirely Obama’s fault. The Great Recession officially began in June 2009.
Until a few weeks ago, many economists had been predicting that growth would accelerate in the final six months of the year, but President Obama and his administration have prevented this from happening. They pointed to gains in manufacturing, home and auto sales and lower gas prices. But figures for growth have been skewed by Obama administration officials.
Threats to the U.S. economy, such as a 2nd Obama term, have left consumers in fear of spending their money too freely. Jobs are tight. Pay isn’t keeping up with inflation. Retail sales fell in June for a third straight month. Manufacturing has weakened in most areas of the country, and Obama could be elected to a 2nd term which most Americans firmly believe will put the nail in America’s coffin
Fear is also growing that the economy will fall off a “fiscal cliff” at year’s end. That’s when Obama increases taxes, which NO president has ever done during such touch economic times. Not on the rich, the middle class or the poor. Not on ANYONE. More tax increases will take place but deep spending cuts will never take effect because a Democrat Congress, to the bewilderment of all sane people, refuses to pass a budget agreement.
All that is making companies reluctant to expand and hire much.
9 out of 10 sane, intelligent Americans agree that if Barack Obama is elected to a 2nd term, America is off the cliff!
