published Tuesday, August 30th, 2011

U.S. economic growth alarmingly slow

There was understandable alarm when the U.S. Commerce Department said that growth of the U.S. economy in the April-June quarter was only 1.3 percent. So the alarm is even greater now that the Commerce Department has further downgraded that figure. The agency says actual growth in the spring quarter wasn't 1.3 percent, but only 1 percent instead. And worse still, for the entire first half of this year, our economy expanded by only 0.7 percent!

What makes that so troubling is that it suggests our country may be headed for another recession. Economic growth of 1 percent or less has preceded almost all of the 11 recessions our nation has endured since World War II, The Associated Press noted recently. So if we're at less than 1 percent growth now, a new recession could be knocking on our door.

And as continued high unemployment shows, what little expansion there has been in the economy just hasn't been enough to provide sufficient jobs to keep up with normal population growth. That means more people are falling further behind as they must rely on government aid or on help from friends and family.

President Barack Obama has made his unwise "prescription" for the economy clear: He wants much higher taxes and a lot more spending.

But that does not mean Congress has to go along with the president. In fact, it is urgently important that Republicans hold the line against big new federal spending -- especially considering the failure of the last "stimulus."

Our nation's economic problems are not being caused by insufficient spending or "too-low" taxes, but by over-regulation, excessive taxation and intrusive government policies that are hamstringing the free market's ability to create jobs and growth.

So long as those suffocating policies continue, we have little chance of seeing real, sustained economic expansion.

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librul said...

You people, and the Republican airheads you worship, are disgusting beyond words.

August 30, 2011 at 12:12 a.m.
nucanuck said...

There is a very good case to be made that the earth's population and economic expansion are at or near sustainable maximums.

This may be the moment when we should abandon the persuit of growth as an objective and begin striving for stability as a healthier goal.

August 30, 2011 at 12:54 a.m.
Rickaroo said...

And by "excessive taxation" causing our economic problems, Mr. Editor, you mean the lowest tax rates EVER on top earners since just before the Great Depression? To be accurate, they were slightly lower than now at the end of Reagan's presidency and then Clinton raised them slightly and, funny thing, we experienced very impressive job growth. In fact, there is clear and abundant evidence throughout our history showing that higher tax rates have been beneficial to the economy as a whole while there is NO evidence whatsoever showing that tax cuts have created jobs or strengthened the economy. Yet you drone on and on and on in your daily dispatches about how tax cuts will spur the "job creators" to create more jobs. It must be an interesting world you inhabit where facts don't matter and all you have to do is believe your ideology with enough passion that just believing it will make it so. Or so you like to think.

Trickle down doesn't work. Never has, never will. And tax cuts for the rich do not create more jobs. Hell, they don't even spend the extra money, they just invest it and make even more money for themselves.

You end your editorial with this: "So long as those suffocating policies continue, we have little chance of seeing real, sustained economic expansion."

I end my post with this: So long as your suffocating, nonsensical rhetoric continues and the Republicans keep trying to force their suffocating, senseless policies on us, we have little chance of seeing real, sustained economic expansion.

The double dip - or worse, Great Depression #2 - is just around the corner. And when it happens I have no doubt you will still be blaming it on those damn liberals and "excessive taxation."

August 30, 2011 at 3:19 a.m.
conservative said...

About half of the American people pay no federal income tax. They enjoy the freedoms our military and courts protect and drive on our roads at others expense. They vote for socialists and clamor for more programs that benifit them, again at others expense. They then have the gall to say the rich don't pay their fair share. I'm encouraged by the resistance of the overtaxed and over-regulated to the socialist dictates of Obama. Someone once stated that the cure for higher taxes was-higher taxes! I look forward to Obama taxing himself out of office.

August 30, 2011 at 9:01 a.m.
Rickaroo said...

"About half of the American people pay no federal income tax." You do realize, don't you(??), that the reason many of those people don't pay it is because they simply do not make enough money! I'm sure that they would all love to make a decent wage and be able to pay into the tax system. It's not like they are staying unemployed or purposely taking low wage jobs just so they can avoid paying income taxes. But you think the answer to our economic ills is to go after the poor and unemployed and force them to pay taxes on money they do not make. Brilliant.

August 30, 2011 at 1:14 p.m.
conservative said...

No one, not one, pays " taxes on money they do not make". Nowhere did the article state or advocate going "after the poor or unemployed and force them to pay taxes on money they do not make". You have to have income to pay income taxes! Now Oblamer did send people checks who paid no income taxes and CALLED them tax cuts. Maybe that is what confused you.

August 30, 2011 at 2:04 p.m.
hambone said...

And the GOP has done so much to spur growth??

August 30, 2011 at 3:26 p.m.
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