You have to know that the Obama administration has run out of excuses for destroying the U.S. economy when it starts to blame it on the weather.
According to the Commerce Department, the economy based on its Gross domestic product–the value of its goods and services–fell at a seasonally adjusted annual rate of 2.9% in the first quarter of this year. That was the largest recorded drop since the end of World War II in 1945!
The June 20 edition of The Wall Street Journal’s article, “Economy Shrank Rapidly in First Quarter” led off by reporting that “Weather disruptions at home and weak demand abroad caused a contraction in the U.S. economy in the first quarter, renewing doubts about the strength of the nation’s five-year-old recovery.”
What recovery? When the economy stays in the basement for five years you are looking at an on-going stagnation based on too much government interference with growth, the decline of the nation’s middle class, the lack of new start-up businesses, and the reluctance or inability of consumers to spend money, if they have any to spend.
In May, writing on his blog, Economic Collapse, Michael Synder pointed to “27 Hugh Red Flags for the U.S. Economy” noting, for example, that according to government numbers, “everyone is unemployed in 20 percent of all American families.” The other indicators include:
# Sales for construction equipment were down 13% in April and have been down for 17 months in a row.
# During the first quarter of 2014, profits at the office supplies giant, Staples, fell by 43.5%
# Foot traffic at Wal-Mart stores fell by 1.4% during the first quarter of 2014.
# It is being projected that Sears will soon close hundreds more stores and may go out of business altogether.
# Existing home sales have fallen for seven of the last eight months and seem to repeating a pattern witnessed back in 2007 prior to the last financial crash.
# The home ownership rate in the U.S. has dropped to the lowest level in 19 years.
You do not have to be an economist to understand that President Obama’s economic policies are flat-out failures that include a “stimulus” that wasted billions of taxpayer dollars without stimulating the economy, nor that having a $17 trillion debt means anything other than a nation teetering on a massive economic collapse.
In May, CNSnews reported that “A record 92,594,000 Americans were not in the labor force in April as the labor force participation rate matched a 36-year low of 62.8 percent, according to data released today by the Bureau of Labor Statistics.”
This is not my definition of a “recession” although we are told that it ended in 2009. This is a “depression” for millions of Americans. The labor force participation rate has gone from 63.5% to 63.3%, the lowest since 1979, but the Obama administration keeps telling us that it is “improving.”
Consumer spending is down. Exports are down. Employment is barely increasing. The only thing that is up is inflation.
Edward C. Prescott, a 2004 Nobel Laureate in Economics and Lee E. Ohanian, a professor of economics UCLA, writing in the June 26 edition of The Wall Street Journal, noted that the declining GDP rate was “the worst productivity statistic since 1990.