Got a recipe for weakening economy?

What should be done to prop up a weakening economy?

More government stimulus? Continue the expiring tax cuts?

How do we get consumers and businesses to start driving the economy again?

The Commerce Department on Friday cut its estimate of second-quarter growth in the U.S., Associated Press reports.

The economy expanded at a 1.6 percent annual rate — down significantly from an earlier estimate of 2.4 percent.

What’s more, the new number represents a sharp drop in the April-to-June period from the 3.7 percent growth of the first quarter.

Weak growth like this hurts the prospects of reducing unemployment.

Economists look for growth of about 3 percent to keep the unemployment rate from increasing. In metro Atlanta, the unemployment rate is 10.2 percent and in Georgia it’s 9.9 percent. Nationally, unemployment stands at 9.5 percent.

Do you think we’re headed for a double-dip recession? Or will we just muddle along with weak growth for awhile?

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30 comments Add your comment

Jane Quatam

August 27th, 2010
10:57 am

We will not have a double dip, because we are still in the first dip. A double-dip by definition would legitimize the insane propaganda that the economy is/was recovering. Green shoots, summer of recovery, etc – all just wishful thinking.

The closest economic analogy would be, we are experiencing a recession inside a depression, much like they did during the Great Depression, in the decade of the 30’s there were times of economic growth, they were slow and always fizzled out.

If we do not change the structure of investing, the house of cards that is Wall Street, that manipulates our economy, we cannot expect to have different results. So to we cannot maintain failed trade policies and treaties that have destroyed manufacturing and burnt down industries and whithered the middle class.

First we must concurrently rebuild our manufacturing industries and capabilities and build demand for these products by spending government money on infrastructure rather than empty wars a world away.

High Speed railroads, would employ many in the construction, operation and maintenance. If we had a domestic capacity to manufacture the materials needed for the construction and maintenance, then we would have increased employment and economic activity.

So to would we prosper, were we to make sizable capital investments in solar power, wind and Thorium fueled reactors. We need to reduce purchasing foreign oil, to help our trade balances and to provide domestic security and reduce the need for troops in the middle east.

The future will look like the present as long as we allow the government to continue to make stupid policies that favor their banking friends and the military industrial complex. It is past time that the government stopped being the policeman of the world and instead became an instrument of the people being governed.

A govenment of the people, by the people and for the people.

Joel Koblentz

August 27th, 2010
2:39 pm

How about a strong dose of realism, responsibility and transparency by our federal government… without the political posturing and talking points?

Let’s face it. The government failed to deliver the promised results on their various recovery program..stimulus, cash for clunkers, mortgage programs, etc.

We have created an economic environment where the new certainty is uncertainty.

And, currently, we see no tangible light at end of the tunnel toward recovery.

How much faith should we have in the next to be proposed government program?

Where is the true leadership? Where is the courage to lead? Probably, on vacation at The Cape?

Time to provide relief and cut spending and taxes. Give the real wealth creators ie our army of small buslness owners and innovators, the economic opportunity to lead a sustainable recovery.

A.S.Mathew

August 27th, 2010
5:33 pm

Nobody has a panacea for this economic crisis, and now all are in the notion that the economy
is getting worse. As more people are taking precautionary measures by cutting down everything
from salt to shirt, the economic growth is a dangerous predicament.

How, people can be motivated to spend the money they have? That is the most urgent
question to be answered. The federal government does’t have the money to give another shot to
stimulate the economy, and any stimulation will not create a lasting effect.

We simply face the reality of life, and we need to retreat to a lifestyle of simplicity of less spending
and a life of meeting only the absolute necessities of life. This worldwide recession is being felt
in those countries depending on exporting their goods to the U.S.

Bailout!

August 27th, 2010
6:18 pm

Just send more taxpayer billions to connected companies like GM and AIG and it will one day “trickle down” to “regular people” so they can find a job! Yes—that’s the ticket!

Dr. M

August 28th, 2010
7:44 am

Here is my recipe for economic turn around and recovery.
1. Cut Gov. expense by 50%.
A. All elected people Cut 50%
B. Eliminate retirement benefits for elected officials.
C. Reduce paid employees pay by 50% or to civilian avg for their job, which ever is greater to a minimum of 25,000 per year.
D. Eliminate all programs that do not qualify under the 10 amendment.
a. Spin of SSI to a private company and repay the 2.5 Trillion that congress stole over the years.
b. Eliminate Dept. of Education. 10 amendment violator. 1
c. Cut all congressional and executive branch budgets by 50% or more.
C. Reduce military spending to the traditional 25% of budget. 500 Billion per year.
D. Pass legislation cutting congressional salaries by 20% for each year that they do not balance the budget. If the budget is balance the money will be restored. If is not balanced the next year they lose another 20%.
2. Stop shipping jobs, captial, people and businesses over seas and as economists say, increase the economy by 15% by passing the FAIR TAX.

A version of this idea was used to conqure the 1920 Depression which was deeper than the “Great Depression, and the Roaring 20’s resulted.

Dr. M

August 28th, 2010
7:53 am

Forgot one important item. Use money saved to rabidly pay down the national debt. Should have at least 1 to 2 trillion available yearly for this purpose.

J.B. STONER

August 28th, 2010
9:17 am

Why is this so hard for you people to figure out?

You put a marxist in the (now) black house………
You need to be in Washington TODAY with Glenn Beck orgonizing to take back YOUR country.

Sit back and expect THE SAME!!

Stay tuned this weekend, I have ALOT more to say.

Mr. big

August 28th, 2010
9:26 am

There is no “recipie”. That is like going out on the town and partying till dawn then passing out and waking up and asking how to eliminate a hangover instantly. We all know that “time” eliminates the hangover. Same with this recession we are in. We all need to do the best we can and keep ourselves in as good as financially possible and wait it out. That’s not to say that there are not opportunities during this down time that should not be explored, but throwing stimulus money around is a stupid idea. The term stimulus indicates that once it stops the economy will have been kick started. Well that sounds great on paper but everyone needs to realize that we are in much deeper dodo that anuthing that a stimulus can fix. We don’t need to prop up gm or the housing market. The quicker the entire market corrects itself naturally, the quicker we can begin to grow. And the reverse is true, the longer we attempt to “stimulate” and put bandaids on things the longer we will remain in this mess. It can’t be fixed. The economy will recover, but business needs to believe that we have leaders that will help them grow their businesses to allow them to take risks. We do not have that atmosphere today. It will come, but probably after Obama is out of the White House. So batten down the hatches mate.

Dr. M

August 28th, 2010
9:29 am

Hey JB, did you read my comment? I could have added another piece. Through out all the Progressive Marxist in the D’s and R’s. This is not too hard to figure out. But Glenn Beck has it right. We must turn back to God as a country or we will not find our way out.

J.B. STONER

August 28th, 2010
9:36 am

Yeah Dr. M ———–

The ‘black hope’ (or black dope) doesnt recognize god and doesn’t want anyone else to. YOU ARE 100% CORRECT..

Destin Dawg

August 28th, 2010
4:17 pm

Bogus healthcare plan.. no cost savings.. no tort reform .. must have TERM limits.. one 6 year term.. then back to private sector.. no retirement.. why do Gov’t workers need unions ??? they are serving their cities, counties, states etc… after all.. cut post office in half (or privatize).. we Email.. pay bills on line, so raise bulk rates.. home deliver mail on Mon. Wed. Fri,…. need business men in this administration… all laws, taxes, soc. security, etc. that apply to citizens must apply to all gov’t employees…

Montel

August 28th, 2010
6:07 pm

Bush and his rich republican friends ruined the economy. It will take Pres. Obama years to correct all these problems, but all the racist republicans in congress keep trying to throw up roadblocks to keep him down.

Mr. big

August 28th, 2010
8:00 pm

Montel: The so called “racist republicans in congress” have no power whatsoever. Unfortunately they are not able to stop any of the irresponsible things that Obama is doing. Obama has done nothing to create jobs. now or in the future. Let me know what he is doing to “correct all these problems”? The economy will not recover until Obama is out of office. Question: Are you better off than you were 2 years ago?

Alecia

August 28th, 2010
8:51 pm

Let’s get rid of these government handouts. Unemployment compensation for 1 yr, not good but okay. However, we have people that have been on unemployment 2-3 years. Where’s their motivation when they can collect food stamps, section 8, and unemployment? Some folks are making the same amount as they were when they had jobs and are working side jobs. If they were hungry enough they would create a business or acquire a skill. My brother recently lost his job as a crane operator. He did not sit around on the government nickel. He went out and re-trained himself as a truck driver. We also need to cut back on food stamps. When there are folks at Dekalb Farmer’s Market or Whole foods loading up on gourmet cheese and organic goodies and paying for it with an EBT card, there’s a problem.

Dr. M

August 29th, 2010
5:45 am

Montel,
You have been misled. There are two groups of culprits responsible for our economic condition. None of them had anything to do with rich people. 1. The long time presence of Progressive Marxist Dems and Reps who did not perform their oath of office and defend the constitution of the US. 2. The intentional economic collaps of the economy and housing market by the Federal Reserve Bank (a private corporation) in colaboration with the Congress of the US. i.e. they intentially doubled peoples adjustable mortgage house payment from 2004-2006. This in conjunction with Gas going to $4 a gallon started the forclosure snow ball which started the decrease in property values and led to high unemployment.
Also, it is the Dems who are the racists. Abraham Lincoln, a Republican, freed the slaves, President Dwight D. Eisenhour, a Republican, first attempted to get a Civil Rights Bill in 1957 but it was blocked in the House of Representatives by the Speaker, LBJ. From the time of the Civil War until recently all elected officials in the Southern States were Democrats including George Wallace. Therefore it was with a great amount of arm twisting by the Republicans in 1964 that enough Democrats were perswaded to join the Republicans in passing the Civil Rights Act.

The Dems are using you to obtain political power, nothing more. And by the way, Senator Robert Bird, a Democrat was a high up official in the KKK and recruited over 150 people into that organization.

Dr. M

August 29th, 2010
6:02 am

Montel, I forgot. Dr. Martin Luther King was a registered Republican.

Dr. M

August 29th, 2010
6:18 am

Montel I just realized something. During the Civil War, the Democrates were on the side of the South. The Republican President was fighting the Democrate controled south to free the slaves. That’s why Dr. Martin Luther King was a Republican.

S

August 29th, 2010
6:22 am

My recipe for the economy would be for everyone to read an article in the New Yorker Magazine about the Koch brothers, titled “Covert Operations” by Jane Mayer. After reading this, you will know the rest of the Tea Party Story. How the Ultra Rich can destroy and divide a great Country. Very disturbing.

Dr. M

August 29th, 2010
6:30 am

S, Just got a minute. Are you saying that the Tea Party movement was started by some clandestine Rich person to bring down the country?

Dr. M

August 29th, 2010
7:18 am

The Tea Party movement is made up of average americans that just want the congress to follow the constitution and operate with integrety. It is not a “party”.

Buzz G

August 29th, 2010
7:23 am

Get the government off the backs of we the people and our businesses. And no more government debt. The US currently owes $13.3 trillion and quickly rising plus another $5.5 trillion “off balance sheet” debt of Fannie Mae and Freddie Mac plus unknown trillions more soon to be owed by the Pension Benefit Guarantee Board plus an unknown amount soon to be owed by a defaulting Sallie Mae as well as an estimated $100 trillion unfunded liabilities for Social Security, Medicare, and numerous other promises made by politicians to get elected that no one can pay for. Stop the spending. Throw the politicians out. The economy will recover on its own.

J.B. STONER

August 29th, 2010
11:33 am

Montel is a moniker of a idiot…

He should have go on a bus, set in the back and rode to Washington yesterday.

Oh, Montie, the party is almost over. Hope you enjoyed yhe trial and error process.

Fool me once……………. Once WAS enough.

atlmom

August 29th, 2010
8:56 pm

Actually, S, you should go look at what Soros is doing to this country. All the tea partiers want to do is lower taxes and get govt out of our lives so much.

atlmom

August 29th, 2010
9:00 pm

In reality – the govt seems to have caused the mess we’re in.
How about this:

PASS THE FAIRTAX!

Okay, well, that might take a little bit.
FREEZE 100% of the budget (perhaps not the military, but that may be the only thing). Then cut 10% of everything. Then keep cutting 10% more every year until you…
Go line by line through each and every department. Figure out what’s working and what’s not.
They NEVER EVER NOT EVER cut programs. Once it’s there – it’s never gotten rid of or cut or anything. They keep expanding it, forgetting what the program was to do in the first place, etc.
I agree that the elected officials should not have pensions. That’s absurd.

Also – those working for govt are now, on average making MORE than in the private sector. This is CRAZY. The reason it’s crazy is that – well – there is complete and total job security AND a pension and all sorts of other benefits people don’t get in the private sector – did I mention job security????
That’s why you get paid LESS – or should. Because people in the private sector get paid for the ‘risk’ that they can lose their job…

atlmom

August 29th, 2010
9:03 pm

and when they clearly don’t know what they’re doing:

http://www.ajc.com/business/2-new-programs-planned-601929.html

More programs is going to do nothing.

RGB

August 29th, 2010
10:26 pm

Obama could, but won’t, improve the economic outlook instantly by going on national television and reading the following:

Good evening my fellow Americans. To improve the American economy I have directed the federal government to take the following measures:

1. I am rescinding my government takeover of health care and will not pursue it again as long as I am in office. Instead, I will provide the Congress with direction aimed at instating remedies that reduce costs by providing incentives for people to self-manage their health care costs.
2. Effective immediately, the Bush tax cuts will be made permanent.
3. I am issuing an executive order immediately that will end the Death Tax, thereby enabling families to keep small businesses alive after the death of the founder.
4. My pursuit of Cap and Trade legislation that would add $3,000 in costs to each American family has ended. I will never again seek to impose this costly legislation on Americans.
5. I will direct the head of the EPA not to attempt to regulate carbon dioxide emissions as this responsibility falls on the legislative, not the executive, branch of government.
6. Under my authority as President, I have ordered a hiring freeze for government employees that will last until the end of my administration. Further, I have ordered a cut of government employees and private contractors of 10% effective six months from this date. As families and private businesses tighten their belts, government must set an example in an effort to demonstrate that “we get it.”
7. As President, I am requesting that the Congress lower the capital gains tax rate to zero.
8. Additionally, I am requesting that the Congress permanently lower marginal income tax rates on individuals and businesses to lower the breakeven point for both businesses and families and reduce the burden that government places on them.
9. Because Government has no business competing with private entities, I pledge to remove government from an ownership position in private businesses. By year’s end, the federal government will no longer have an ownership stake in GM or Chrysler. By the end of the next year, the government will no longer control Fannie Mae, Freddie Mac, or be in the student loan business.
10. Effective immediately, all czars who have been named will have their positions eliminated. These individuals placed additional regulatory burdens on businesses–and my administration will no longer allow this.
11. By executive order, I am ordering a pay cut of 10% for all federal employees making less than $80,000 per year. For employees making more than that amount, I am ordering a pay reduction of 20%. These cuts will be permanent.
12. Finally, I have ordered that all unspent stimulus dollars be retained and that all future government budgets reflect a zero percent increase. If Congress wants to spend money for a new program, it must end an existing one.

Good evening. And may God (he would say “Allah”) bless America.

S

August 30th, 2010
2:09 am

Well I can see no conservative that wrote on this blog read the New Yorker article about the Koch brothers and how they are subsidizing the Tea Party(groups) or anything anti Obama, if you will. The Koch brothers, Father, worked for Stalin, the Marxist in Russia, read the article. There is so much going on to undermine the Obama administration to the detriment of this Country, wake up. Do your own research, don’t depend on the likes of the Rush’s, Becks, FAUX Nutty Nuz. The truth will set you free and believe me it is out there. The Tea Party member have not a clue..you are being used, don’t you get it!
Anyone who believes in the Fairy Tale Tax has to be clueless! Here is a question for you. How much money will you bring home in your check after the fair tax kicks in? If you say all of it you would be wrong. And no it won’t tell you that in that book. Are the Politicians talking about it, NO, they know it won’t work.
Nope God ain’t gonna help us out of this. God only helps those who help themselves and I know if there is a God he sure would not be on the side of Racist, and Haters and those that want to see this Country on it’s knees. Shame on all of those helping to bring this Country down…

Dr. M

August 30th, 2010
7:34 am

Excuse me S, Obama is a Marxist/Communist/Socialist! His parents were communists, his mentor that influenced him growing up was a communist. He stated that he purpously sought out communist professors in college. His friends as a community organizor were communists and marxist and anti capitalists. Half his “Czars” in the White House are communists and marxist and anti capitalists. He is using the Cloward and Pivins plan of overwellming the system to collaps it so that they can bring in a Marxist government structure in the US. You are being deceived.

S

August 31st, 2010
3:43 am

Capitalism only works if you share, some people, Politicians and corporations have forgotten that. Some only know of the talking points of the Rush’s, Beck’s, Faux Nuz and think it is gospel. A simple search engine on computers will fine the truth you seek and are easiest ways of finding the truth. Some wouldn’t know the truth even if it bit them on the arse though, so why waste my time here, when I have truth to seek out. Only those who listen to hate radio/TV channels and think it is the truth are being deceived. Sad REALLY!

nix

September 1st, 2010
4:38 pm

all those billions should have been divided amongst each adult american citizen. But since that did not happen, do it now. Bail out americans not corporate america.