Don’t call it a double-dip, because that ties it to the unrelated financial crisis of 2008. No, the crisis of 2008 was due to lenders being forced to lend money to questionable borrowers and trying to recoup the losses through hybrid investments that went south.
This one is squarely on the shoulders of Obama’s job killing redistributive economic policies, not a second leg of 2008. Obama, Reid and Pelosi were the Andrew Cunanan of jobs for two years. Now their killing spree shows up in the data.
Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. Excluding falling prices for such items as energy and food, consumer spending would have been unchanged in June.
Incomes rose 0.1 percent. It was the weakest growth in income since September, reflecting anemic hiring this spring.
Stock futures were trading lower after the report was released.
Stock futures lower? That can’t be. Haven’t you heard – we fiscal conservatives agreed to hand our country’s future over to 12 members of Congress (approval rating – 6%) and go $7 trillion deeper in debt! The economy is saved! So why isn’t the post-debt crisis rally in full swing?
Just remember, no matter how bad things get there will always be jobs carrying failed President Obama’s water in the media.
High gas prices and unemployment have squeezed household budgets this spring, leading to tepid overall economic growth in the April-June quarter. The economy expanded at an annual rate of 1.3 percent in the second quarter after only 0.4 percent growth in the first three months of this year. The combined growth for the first six months of this year was the worst since the recession ended two years ago.
Yep. Suddenly, “remembering what got us here” is no longer so important. “High gas prices and unemployment” of a mysterious origin.
Many analysts are still hopeful that growth will rebound in the second half of the year. They expect auto production and sales to pick up once supply chain disruptions ease. Many auto dealers reported shortages of popular models after Japan’s March 11 earthquake limited production of parts. That cut into auto sales.
“Many analysts are still hopeful.” We see where baseless hope gets us. Maybe if American car companies were focused on building cars that run on GAS instead of coal-fueled electricity, people wouldn’t be waiting around for months to buy models out of earthquake ravaged Japan.