The GDP growth rate for the second quarter of 2012 was 1.5% according to the first figures released this morning by the government. This is a terrible number. Since the recession formally ended in 2009, this is the lowest that the growth rate has gotten by far. There will be adjustments to this early figure as more data comes in, but it is clear that the economy is barely limping ahead. When the third quarter comes in, if the trend continues, we may be back in the hole in a double dip recession.
From a political standpoint, today's numbers are a disaster for the Obama campaign. This anemic growth rate is the backdrop for the last months of the campaign. Obama's recent claim that America tried his program and it worked is totally refuted by these figures. Put another way, all those businesses that Obama claims were successful because of what the government has done are now hurting in a big way. Obama can claim ownership of that failure, but I doubt we will be seeing that.
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