The Obama Economy: Barack Obama Built This.

usamamasan1usamamasan1 Posts: 4,695
edited July 2012 in A Moving Train
1.5% eh?
obamastevejobs.png




Economic estimates reflecting a weak 1.5 percent growth rate in the second quarter quickly became a political football Friday, as Republicans used the stat to chastise President Obama over his economic policies and bolster warnings about "looming tax hikes" next year.

The Commerce Department reported Friday that the economy grew at the 1.5 percent rate from April to June, as Americans cut back sharply on spending. The rate matched expectations -- but expectations were low.

In a hastily convened conference call, the Mitt Romney campaign pointed to the figure as the latest sign the economy under Obama simply cannot produce enough growth to put millions of jobless Americans back to work.

"It's a picture of a decelerating economy," said Romney economic adviser Dean Glenn Hubbard. "At that pattern, the economy simply will never return to full employment."

A campaign email with a snapshot of the gloomy GDP headlines also poked at Obama's recent "you didn't build that" gaffe. The email was titled: "The Obama Economy: Barack Obama Built This."

While Republicans used the report as a campaign cudgel, the White House tried to look on the bright side -- in that, the economy is technically growing.

"Today's report shows that the economy posted its twelfth straight quarter of positive growth," Alan Krueger, chairman of the Council of Economic Advisers, said in a statement. "While the economy continues to move in the right direction, additional growth is needed to replace the jobs lost in the deep recession that began at the end of 2007."

Republicans seized on the Commerce report with an intensity usually reserved for the monthly employment reports, which often feature prominently on the campaign trail.

They also used the report to build their case for extending all the Bush-era tax rates before they expire at the end of the year.

"Today's GDP report is a troubling sign for the future of our economy, and it underscores the need to stop all of the looming tax hikes that will weaken it further," House Speaker John Boehner said.

Senate Democrats passed their version of the tax plan earlier this week, which calls for the rates to be extended for households making less than $250,000 a year, and rates to rise for those making more. Democrats, including President Obama, say top earners need to pay more to help close the deficit and stress that their plan would still benefit the overwhelming majority of taxpayers.

But Republicans warn that the limited tax hike would hurt small businesses, not just the wealthy.

The Commerce Department also said Friday that the economy grew a little better than previously thought in the January-March quarter. It raised its estimate to a 2 percent rate, up from 1.9 percent.

But growth at or below 2 percent 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," 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 slightly after the report was released. Some economists had thought the growth estimate would be even lower.

The lackluster economy is raising pressure on Obama in his re-election fight with Romney, the presumptive Republican presidential nominee.

But few think the Fed, the White House or Congress can or will do anything soon that might rejuvenate the economy quickly. Many lawmakers, for example, refuse to increase federal spending in light of historically large budget deficits.

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 slowed to a growth rate of just 1.5 percent. That's down from 2.4 percent in the first quarter. Americans bought fewer autos, computers and other long-lasting manufactured goods. Spending on services increased.

They also saved more. The savings rate increased to 4 percent, up from 3.6 percent in the first quarter.

Consumer spending, which accounts for 70 percent of economic activity, was offset somewhat by a slightly smaller drag from the government. Spending by governments fell at an annual rate of 1.4 percent in the second quarter, just half of the 3 percent rate of decline in the first quarter.

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. The Great Recession officially ended 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. They pointed to gains in manufacturing, home and auto sales and lower gas prices.

But threats to the U.S. economy have left consumers too anxious to spend 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.

Fear is also growing that the economy will fall off a "fiscal cliff" at year's end. That's when tax increases and deep spending cuts will take effect unless Congress reaches a budget agreement.

All that is making companies reluctant to expand and hire much.

The Associated Press contributed to this report.



Read more: http://www.foxnews.com/politics/2012/07 ... z21qWC3eQ2

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Post edited by Unknown User on

Comments

  • brianluxbrianlux Moving through All Kinds of Terrain. Posts: 42,426
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.
    "Pretty cookies, heart squares all around, yeah!"
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  • brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    in all seriousness,
    i probably won't vote.
    i couldn't care less which of the two clowns takes the prize.
    If I was to smile and I held out my hand
    If I opened it now would you not understand?
  • peacefrompaulpeacefrompaul Posts: 25,293
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    No
  • ByrnzieByrnzie Posts: 21,037
    edited July 2012

    I wonder how tthings would be shaping up now if the Republicans hadn't blocked every effort by Obama to boost the economy?
    Or is this something that Republicans would prefer that we all just forget?

    http://www.nytimes.com/2011/10/21/us/po ... emeal.html
    For the second time in 10 days, the Senate on Thursday rejected Democratic efforts to take up a jobs bill championed by President Obama.

    The vote to advance the bill was 50 to 50. Democrats needed 60 votes to overcome a Republican filibuster.

    This time, the bill was narrowed to provide $35 billion to state and local governments to prevent layoffs of teachers, police officers and firefighters. To offset the cost, the bill would impose a surtax of 0.5 percent, starting in 2013, on income in excess of $1 million.



    http://www.huffingtonpost.com/2011/11/0 ... 74539.html

    'Republicans in the Senate Thursday dealt President Barack Obama the third in a string of defeats on his stimulus-style jobs agenda, blocking a $60 billion measure for building and repairing infrastructure like roads and rail lines.

    Supporters of the failed measure said it would have created tens of thousands of construction jobs and lifted the still-struggling economy. But Republicans unanimously opposed it for its tax surcharge on the wealthy..'
    Post edited by Byrnzie on
  • lukin2006lukin2006 Posts: 9,087
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    Reading something on here wouldn't change my mind. As a Canadian I don't vote. I do not understand how people feel voting for any political party will make there life better. Politicians of all political stripes only want to take care of their own interest...imo.
    I have certain rules I live by ... My First Rule ... I don't believe anything the government tells me ... George Carlin

    "Life Is What Happens To You When Your Busy Making Other Plans" John Lennon
  • Go BeaversGo Beavers Posts: 9,191
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    I would guess that there are lurkers who are undecided on who they're going to vote for in Nov. There a curious bunch to me, because I can't see how you can be undecided at this point. Us posters seem more clear on who we're going to vote for.
  • mickeyratmickeyrat Posts: 40,182
    Go Beavers wrote:
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    I would guess that there are lurkers who are undecided on who they're going to vote for in Nov. There a curious bunch to me, because I can't see how you can be undecided at this point. Us posters seem more clear on who we're going to vote for.
    Some of us "lurkers" might feel its nobody's business who we will vote for. the only thing ,imo, that matters is that people participate in the process.
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  • Byrnzie wrote:

    I wonder how tthings would be shaping up now if the Republicans hadn't blocked every effort by Obama to boost the economy?
    Or is this something that Republicans would prefer that we all just forget?

    http://www.nytimes.com/2011/10/21/us/po ... emeal.html
    For the second time in 10 days, the Senate on Thursday rejected Democratic efforts to take up a jobs bill championed by President Obama.

    The vote to advance the bill was 50 to 50. Democrats needed 60 votes to overcome a Republican filibuster.

    This time, the bill was narrowed to provide $35 billion to state and local governments to prevent layoffs of teachers, police officers and firefighters. To offset the cost, the bill would impose a surtax of 0.5 percent, starting in 2013, on income in excess of $1 million.



    http://www.huffingtonpost.com/2011/11/0 ... 74539.html

    'Republicans in the Senate Thursday dealt President Barack Obama the third in a string of defeats on his stimulus-style jobs agenda, blocking a $60 billion measure for building and repairing infrastructure like roads and rail lines.

    Supporters of the failed measure said it would have created tens of thousands of construction jobs and lifted the still-struggling economy. But Republicans unanimously opposed it for its tax surcharge on the wealthy..'


    it's just unfathomable that Obama-haters choose to forget all of these facts.
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  • cincybearcatcincybearcat Posts: 16,492
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    Well, I voted for Obama last time. Won't do it again.
    hippiemom = goodness
  • brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    Well, I voted for Obama last time. Won't do it again.

    may I ask why? If you prefer to keep it confidential, understandable.
    Gimli 1993
    Fargo 2003
    Winnipeg 2005
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    St. Paul 2014
  • ComeToTXComeToTX Austin Posts: 7,872
    Byrnzie wrote:

    I wonder how tthings would be shaping up now if the Republicans hadn't blocked every effort by Obama to boost the economy?
    Or is this something that Republicans would prefer that we all just forget?

    http://www.nytimes.com/2011/10/21/us/po ... emeal.html
    For the second time in 10 days, the Senate on Thursday rejected Democratic efforts to take up a jobs bill championed by President Obama.

    The vote to advance the bill was 50 to 50. Democrats needed 60 votes to overcome a Republican filibuster.

    This time, the bill was narrowed to provide $35 billion to state and local governments to prevent layoffs of teachers, police officers and firefighters. To offset the cost, the bill would impose a surtax of 0.5 percent, starting in 2013, on income in excess of $1 million.



    http://www.huffingtonpost.com/2011/11/0 ... 74539.html

    'Republicans in the Senate Thursday dealt President Barack Obama the third in a string of defeats on his stimulus-style jobs agenda, blocking a $60 billion measure for building and repairing infrastructure like roads and rail lines.

    Supporters of the failed measure said it would have created tens of thousands of construction jobs and lifted the still-struggling economy. But Republicans unanimously opposed it for its tax surcharge on the wealthy..'


    it's just unfathomable that Obama-haters choose to forget all of these facts.

    It's hard to say his ideas don't work when we haven't seen many in action.
    This show, another show, a show here and a show there.
  • ComeToTX wrote:

    it's just unfathomable that Obama-haters choose to forget all of these facts.

    It's hard to say his ideas don't work when we haven't seen many in action.

    precisely.
    Gimli 1993
    Fargo 2003
    Winnipeg 2005
    Winnipeg 2011
    St. Paul 2014
  • brianluxbrianlux Moving through All Kinds of Terrain. Posts: 42,426
    Right! There are several reasons why many of us who voted for Obama are disappointed but it should be noted that almost everything he's tried to do has been met with extreme resistance. If he gets re-elected I think we'll see much more progress since there won't be the strong efforts being put out to keep him to one term.
    "Pretty cookies, heart squares all around, yeah!"
    -Eddie Vedder, "Smile"

    "Try to not spook the horse."
    -Neil Young













  • ed243421ed243421 Posts: 7,667
    The whole world will be different soon... - EV
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  • maj4emaj4e Posts: 605
    brianlux wrote:
    When ever I read threads like this- and there sure are a lot of them- this question comes to mind: "Has any body who reads AMT regularly changed their mind about who you are going to vote for?" I'm not being facetious- I really do wonder about this.

    No because most people don't vote for someone, they vote against someone. And lately it seems as if it's something personal than you know... issue oriented. Don't get me wrong, they will drag up some issue (both sides) to point at but really it's just something personal.
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