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Wednesday, May 1, 2013

Is the Economy Slowing Once Again?

In the last few days, we have seen new statistics that seem to indicate that the American economy is continuing to slow its rate of growth.  This is not a new trend.  It is not the result of sequestration, as the Democrats and the media would have you believe.  No, the rate of growth of the GDP was less in 2011 than in 2010.  It was less in 2012 than in 2011.  Now we have data for the first quarter of 2013.  If you remove the effect of inventory changes which distort the final number, growth in the first quarter of 2013 was less than it was in the last quarter of 2012.  The ADP employment report for April indicates that fewer jobs were created than last month.  The economy is just not moving ahead.

Now let's be clear.  Slowing rates of growth would not be a big deal if we were slowing from 8% to 7.5%, but that is not the case.  The rate (without the inventory moves) was just under 2% in the last quarter of 2012 and less than 1% in the first quarter of 2013.  In other words, the economy is barely growing at all.  We can all be happy that there is not decline like there is right now in Europe, but that happiness will not find jobs for the countless millions of  unemployed and underemployed Americans.

So now let's get to the main question.  What is the plan of president Obama to change the trajectory of the economy for the better?  The sad truth is that Obama does not have a plan.  Oh, he talks about raising taxes on the wealthy, but no one, not even a loony leftist like Paul Krugman, believes that raising taxes on the wealthy will promote economic growth.  Obama also talks about universal preschool, but it will be two decades before those kids enter the workforce.  That will not affect the growth rate now.  Indeed, all of Obama's push for educational spending will have no present effect on the economy.  So I say again, what is Obama's plan for the economy?

Obviously, Americans on the whole, did not care that Obama had no plan which he could enunciate.  They re-elected him last November.  Nevertheless, I am sure that very few of those who voted for Obama would have expected that 100 days into his second term, he would have no program for economic growth.  Nor would they have expected that Obama would hold a press conference and the subject of the economy would not even be raised.  Whenever the pollsters ask the public which issues they consider the most important ones facing America, the response is always that jobs and the economy are the first two.  It is not even close.  But Obama has no program.  Obama does nothing about the economy.  Those without jobs are forced to fend for themselves.  Obama, instead, spends his time pondering gay NBA players, gun control proposals that will not prevent crimes, and immigration "reforms" designed for political purposes.  Oh, and I should not forget all the time spent fundraising.

America needs a president who is prepared to lead on the issues important to the country.  It is going to be a long time before we have one.



 

 

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