Two words to describe the Obama era: Downward revision
If it feels like the recession never ended, that’s because economic growth is so low we’re practically in a recession right now.
The Commerce Department this morning reported its initial estimate for economic growth from April to June: an annualized rate of 1.3 percent, which is still less than half the long-term trend, two years after the recession officially ended.
But what shouldn’t be overshadowed by that poor number is the downward revision of growth from January to March to a paltry annualized rate of 0.4 percent — from an earlier estimate of 1.9 percent, which was bad enough but now seems like President Obama’s version of the Roaring Twenties. There were also smaller downward revisions to figures for the last two quarters of 2010, and four of the last six quarters overall.
In short, even the meager growth previously reported has been revised downward to the less-rosy reality Americans have been experiencing all along.
These figures represent inflation-adjusted growth. The unadjusted figures were 3.1 percent in the first quarter and 3.7 percent in the second. That means higher prices have swallowed up just about all of the economic gains this year. (Not-so-fun fact: While the debt ceiling has dominated the news cycle recently, gas prices nationwide have crept back up by almost 17 cents a gallon during the last month and are almost back to being $1/gallon higher than a year ago.)
The growth the Federal Reserve has tried to stimulate through its easy monetary policies has been consumed by the inflation those policies have wrought. The growth Obama and the Pelosi-Reid Congress tried to stimulate through timid tax cuts, gifts to state governments and not-so-shovel-ready public works has not only failed to multiply itself as promised, but simply evaporated.
And new, lasting growth is not going to come as long as the president is determined to browbeat business, punish success, build a permanently larger public sector, suck the middle class into the welfare state, and otherwise impose his notion of fairness as national economic policy.
If you believe otherwise, you haven’t been paying attention the last two and a half years.
– By Kyle Wingfield
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111 comments Add your comment
Exit Strategy
July 29th, 2011
3:26 pm
There is no need for a useless Balanced Budget Amendment. If the members of Congress (both parties) do there job, there is no need. Congress creates the budget. Congress approves the budgets, and sends on to the president. All the Congress idiots need to do is NOT approve a budget that overspends, PERIOD. Demannd for a BBA is merely an admission that Congress is not doing its job. And, holding the economic future of this country hostage over a BBA borders or criminal.
Kyle Wingfield
July 29th, 2011
3:40 pm
midtownguy @ 3:00: Ah, but in this Age of Continuing Resolutions, the Congress no longer debates and passes an actual full-year budget, making the kind of trade-offs you imply. By Sen. Jeff Sessions’ count, it’s been more than 800 days since the Senate passed a full-year budget.
Exit Strategy @ 3:26: Thomas Jefferson had the rebuttal 213 years ago: “In questions of power, then, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.”
There are flaws in the BBA concept, but there’s little reason to believe Congress will do as you suggest anytime soon.
midtownguy
July 29th, 2011
3:48 pm
I agree they haven’t passed a full-year budget in quite a while but that doesn’t mean they couldn’t (and by “they” I meant he Congress and the President). The continuing resolutions allow each side of the aisle to protect their sacred cows and blame the other side and/or the White House. The resolutions just continue the programs in place so that no real debate on what could and should be spent is ever held.
Joe Friday
July 29th, 2011
3:57 pm
We need a balanced budget amendment like we need a hole in the head.
Especially the one that Republicans crafted which makes it easier to do the things that they like to do (cuts spending for the poor and middle class) and harder to do the things they don’t like to do (cut tax “expenditures” for the rich).
guy
July 29th, 2011
4:02 pm
Those that supported obama don’t care because most are content to let the liberal media think for them and are even prouder for the government to support them. You will never overcome ignorance and anger.
Linda
July 29th, 2011
4:10 pm
Kyle, Sounds like you hit some nerves. How do you put up with this nonsense day in & day out? No wonder you write about generic topics from time to time.
I’ve offered dozens of sites to back up my comments on your blog. It’s useless. The left is in denial of any facts whatsoever. They continue to blame Bush & Republicans & find Obama blameless for anything. They think that raising taxes is the answer for all woes. Economic geniuses. The Democrats are so deserving (of each other).
BTW, there are now 4,835 comments on another AJC blog with the topic being a mural. Some journalists are expendable. Glad you are not one of them.
Joe Friday
July 29th, 2011
4:13 pm
The latest is that the bill that Republicans will vote on in the house today would raise the debt ceiling only until next year.
Then, they would only raise it again IF congress passes a balanced budget amendment by 2/3 votes in both houses. In other words, “Give us our constitutional amendment, or the American people get.”
Reasonable people would think that our senators and congressman should have the opportunity to vote for or against something as important as a constitutional amendment based on whatever their consciences tell them to do. But Republicans aren’t reasonable people. Whether you support the amendment they propose or not, you’d better vote for it, or America gets it.
What they’re attempting to do is the very definition of extortion, and if it were up to me, these hostage takers would be serve prison time for their methods.
—
extort: to obtain from a person by force, INTIMIDATION, or undue or illegal power (merriam-webster)
carlosgvv
July 29th, 2011
4:20 pm
This may be the Obama era but you can’t blaim Obama for the lack of business hiring. Corporations are sitting on a large amount of cash but aren’t hiring because they have come to realize, now more than ever, that they can just pile more work on their existing employees, knowing they won’t dare quit. Instead of using the extra cash to hire more workers, they just pocket it. No president, Democratic or Republican, can force Corporations to hire. My guess is they will keep on doing this for the foreseeable future and that now is the new normal. Hey, is this a great country or what???????
ATF
July 29th, 2011
4:21 pm
the hole we are in is the Bush Great Recession. Bush and a Republican Congress took the surpluses of the Clinton years and trashed them. Just look at what is happening in the House if you want an example of disfunction.
To create a bill that will extend the debt ceiling the Republicans need to be compromising with the Democrats, not the tyrants of the Tea Party. The illusion of progress being made in the House is the same story we always hear from Republicans – illusion.
Tell me. If tax cuts produce jobs, where are they?
DannyX
July 29th, 2011
4:25 pm
“gifts to state governments ”
And there were some good ones. Georgia Republican Governor, Sonny Perdue, representing every single Republican Governor in the nation fired off a letter to Obama begging for more stimulus money.
Republican Texas used the stimulus money to balance their budget!
saywhat?
July 29th, 2011
4:26 pm
What exactly would the Republicans have done differently the past 2 and 1/2 years had they won the Presidency and both houses of congress in 2008? There would have been no health care bill, and no ending of DADT, those two are a given. But what would they have done to stimulate the economy and create jobs that hasn’t already been tried in the past and failed miserably (like cut taxes and deregulate everything)?
Joe Friday
July 29th, 2011
4:36 pm
saywhat?
We know exactly what Republicans would have done. They’ve been planning it for years. They created deficits specifically so they could kill the beast.
Keep in mind that they don’t want to kill the beast because they oppose big government. They only oppose big government for most people so they can expand government for the powerful few.
Linda
July 29th, 2011
4:43 pm
Since the War on Terror began after 9/11, thousands of our military have suffered traumatic brain injuries (TBIs). They have had to navigate a bureaucratic military care system that pays for only a partial cost of the therapy needed thru the DOD’s Tricare insurance program. Thanks to Bernie Marcus, co-founder of Home Depot & the Marcus Foundation, our own Shepherd Spinal Center is one of only 2 civilian hospitals in the US to treat veterans of war. Mr. Marcus is one of the most generous philanthropists of our day, whose gave Atlanta the aquarium. Shepherd has treated 176 of our military. One said he received more help at Shepherd in 7 wks. than during 10 mts. elsewhere.
Govt. is not the answer. Govt. is the problem. Thank God for the rich & benevolent. Thank God for our military.
Thank you, Bernie Marcus.
Original Thought not Necessary
July 29th, 2011
4:46 pm
Linda,
Of course it’s the case that everyone that disagrees with you is in denial because it is impossible to fathom that there are some intelligent, considered, patriotic American’s that aren’t lock step members of the GOP. You are one of many that need to wake up and realize there are vast numbers of people who see things from a different perspective, who think a little differently than you, who are just as intelligent as you and yours but don’t agree with anything you have to say.
People like you on both sides of the political spectrum are dangerous and will remain so until you wise up and realize that there are good ideas abundant on the left and the right. The demonization of the “enemy” will bring this republic to its knees faster than any outside enemy. If you need an example look at the mess we are in now. A completely fabricated crisis over an arbitrary limit with both sides digging in their heels.
I’m praying that the vast middle is beginning to awaken and will soon assert its might, pushing the fringes and zealots to the margins of the left and right where they belong so that the adults that understand that “my way of the highway” is no way to govern can begin the work of cleaning up after the children.
Joe Friday
July 29th, 2011
4:50 pm
Linda likes living in a world where we have to rely on the rich and benevolent to take care of us. If I felt that way, I’d vote Republican too.
By the way, I wonder how veteran’s health care is going to do after Republicans deliberately drive our economy over a cliff next week. Probably not great.
Not to worry though. Bernie Marcus will pick up the slack.
Jefferson
July 29th, 2011
4:54 pm
There is no way the gov’t can cut its way out of debt. Until it is belived by the GOP, expect more of the same dysfunctional gov’t. The tea reps ain’t seen nothing yet.
Chuck
July 29th, 2011
5:02 pm
@ Joe Friday,
“I wonder how veteran’s health care is going to do after Republicans deliberately drive our economy over a cliff next week. Probably not great…Not to worry though. Bernie Marcus will pick up the slack”
I can’t stop laughing! I studied southern history and Linda’s implication that the rich and powerful will take care of us reminds me of the noblesse oblige argument in support of slavery. That slave owners are too kind, generous, and well bred to exploit the people put under their care by the lord almightly.
USMC
July 29th, 2011
5:05 pm
Great piece Kyle,
This President is Anti-Business and really Anti-American. I don’t care if he has a Birth Certificate.
He was raised in Hawaii and Indonesia and it is so obvious that he is the “Manchurian Candidate”.
I do believe that Obama will LOSE in 2012, but don’t let up on the gas pedal just yet.
Tick, Tock, Tick, Tock…
USMC
July 29th, 2011
5:08 pm
“There is no way the gov’t can cut its way out of debt. Until it is belived by the GOP, expect more of the same dysfunctional gov’t. The tea reps ain’t seen nothing yet.”
What kind of MORON doesn’t understand that Cutting spending is the best way of getting out of debt?
These are the Bolsheviks that we are contending with these days.
Joe Friday
July 29th, 2011
5:18 pm
I hear you, Chuck. Your comparison is valid.
If only Linda could hear herself. She votes for Tea Party types who seek to cut spending indiscriminately, except where the powerful are concerned, and then has the gall to argue that inadequate veteran health care benefits are an indication of a “bureaucratic military care system.”
Original Thought not Necessary
July 29th, 2011
5:21 pm
And up pops USMC to prove my point.
Thanks.
Republicans do not oppose big government
July 29th, 2011
5:27 pm
IF they did why did they pass Medicare Part D – the drug benefit that provides a subsidy to the drug industry and ensures a rapid escalation of costs. Sorry most of you who drink the Republican kool aid – also don’t have the cuts to reform any of the entitlement programsm or fund new expenses like wars through taxes or cuts – rather it is more convenient to keep the cost of wars off the balance sheet. The republicans had their chance – they opted for bridges in Alaska to no where – they lost the trust of fiscal conservatives.
Sorry – I will stick with a libertarian ticket
Jefferson
July 29th, 2011
5:28 pm
USMC you are a name caller and wrong. Look at the last 2 days in the house or reps. They can’t do nothing. So when will it be?
Joe Friday
July 29th, 2011
5:29 pm
USMC,
What kind of MORON doesn’t understand that Cutting spending is the best way of getting out of debt?
Well, you obviously know that when revenues fall faster than spending does, then deficits and debt go up.
You also know that government spending makes up a significant part of the economy, and that if you cut government spending, then you’re cutting part of the economy.
And finally, you know that when the government spending shrinks drastically then revenues will fall too. I mean, that government spending went into somebody’s pockets that paid taxes on that income. No income, no taxes to pay.
I know that you know these things because, what kind of moron wouldn’t?
What is happening to the countries in Europe that are cutting spending? Their economies shrink, their revenues go down, they have deficits, they cut more spending, their economies shrink, their revenues fall again, and so on.
That’s exactly what austerity will get us in America.
Jefferson
July 29th, 2011
5:31 pm
What makes anyone belive if the GOP was handed the whole gov’t like in 2000, they would do anything different than before? Now thats hope vs experience.
Linda
July 29th, 2011
5:53 pm
The crisis we are in has little to do with raising the debt ceiling. The credit agencies & the investment banks have been very specific. The problem is the DEBT. None of the proposals in DC will prevent the US from being downgraded. None of the proposals in DC address the DEBT. They merely prevent the debt from increasing at the rate that Obama proposed.
Lil' Barry Bailout
July 29th, 2011
5:58 pm
Two words to describe the Obama era: Downward revision
12:05 pm July 29, 2011, by Kyle Wingfiel
———————
ROFLMGDAO! Perfect.
Lil' Barry Bailout
July 29th, 2011
6:02 pm
“What makes anyone belive if the GOP was handed the whole gov’t like in 2000, they would do anything different than before?”
——————–
Uh, most Americans would agree that Bush’s relatively frugal $400 billion deficits and 4-6% unemployment are superior to the sad result of your Idiot Messiah’s failed regime.
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
July 29th, 2011
6:05 pm
Wow, I found that last people in the world who still admire barry obozo, other than the jihadees in the Middle East of course, and it’s the libs that populate the blogs of the Urinal.
Just sayin…………ew.
F. Sinkwich
July 29th, 2011
6:10 pm
Joe:
“And finally, you know that when the government spending shrinks drastically then revenues will fall too.”
Nope. Did you get your economics degree from a matchbook cover?
In Joe-World, we need to double or triple our government spending to fix the economy.
Joe is a typical Messiah voter.
Original Thought not Necessary
July 29th, 2011
6:23 pm
And up step the disgraces known as LBB, Sinkwich and I Report to further prove my point.
Keep it up folks. Bellow into the wind and self inflict those wounds, your day will soon come to an end as you and your compatriots on the left are pushed aside.
F. Sinkwich
July 29th, 2011
6:29 pm
“A new poll shows that President Barack Obama’s approval rating has plummeted to a new low as talks to raise the debt ceiling stalled and the president stayed out of the public eye after a Monday night speech through early Friday. The president’s average approval rating on Tuesday, Wednesday and Thursday was 40 percent in Gallup’s daily tracking poll released on Friday.”
How in the hell can Hopey/Changey’s approval rating be so high?
Who is being polled? Pawn shop owners? Registered socialists? Alinsky acolytes? Illegal aliens?
SEIU thugs? ACORN losers? EITC leeches? Members of the Karl Marx fan club? Dum-asses?
Could be all of the above…
F. Sinkwich
July 29th, 2011
6:32 pm
“Bellow into the wind and self inflict those wounds, your day will soon come to an end as you and your compatriots on the left are pushed aside.”
Yo, dude, pass the bong…
I Report (-: You Whine )-: Thee Magnificent!!! mmm, mmmm, mmmmm! Just sayin...
July 29th, 2011
6:38 pm
you and your compatriots on the left
I know know this is hard to follow, stooge, but I’m a right wing Christian extremist, or as better known outside of planet Moonbat, a typical American.
Call me a leftie again and I’ll ruin you.
MarkV
July 29th, 2011
6:40 pm
“The crisis we are in has little to do with raising the debt ceiling. The credit agencies & the investment banks have been very specific”
An obvious lie. The credit of the US has been intrinsically downgraded by the debt, but the crisis we are in is due to the debt celining fiasco.
“A new poll shows that President Barack Obama’s approval rating has plummeted to a new low as talks to raise the debt ceiling stalled and the president stayed out of the public eye after a Monday night speech through early Friday. The president’s average approval rating on Tuesday, Wednesday and Thursday was 40 percent in Gallup’s daily tracking poll released on Friday.”
Still much better than the approval of the Republicans in Congress,
Hillbilly D
July 29th, 2011
6:47 pm
In theory, a Balanced Budget Amendment sounds like a good idea. In the real world, if it ever did pass, they would just play games with what’s in the budget, what’s off-budget, etc. And things would probably be based on “projections”, which can easily be manipulated by whoever is holding the reins at the time. I think Congress is going to always find ways to hide things and play games; it’s in their job description.
Paddy O
July 29th, 2011
6:48 pm
Obama has personally stated that he did not know that shovel ready projects were not just lying around by the boat load – and you wonder why he hangs out in the background & throws darts at others ideas? Obama has not DESIRE to balance the budget. That is horrible leadership. That is demagoguery. That is the neophyte Obama. Fool me once, shame on you, fool me twice, shame on me.
MarkV
July 29th, 2011
6:52 pm
“The president’s average approval rating on Tuesday, Wednesday and Thursday was 40 percent in Gallup’s daily tracking poll released on Friday.”
The approral rating of GWB dropped to 40% in 2006 and went down from there.
Paddy O
July 29th, 2011
6:52 pm
hillbilly – if you want to be lied to about our country’s economy, fine – but without a balanced budget amendment (that would be in the Constitution), our entire economy is a house of cards – it has allowed the overpaid inept twits in Congress to run around propping up 3rd world countries – even countries with large populations than us – INdia & China – which is actually treasonous activity. We need to exit NAFTA, adopt import tariffs,and start mass producing things like clothes, TV’s, 80% of the stuff at wal mart – that would generate good jobs for those who are not qualified for college (about 60% of the population).
MarkV
July 29th, 2011
6:58 pm
“In theory, a Balanced Budget Amendment sounds like a good idea. ”
The Balanced budget Amendment is a stupid idea in theory as well as practice. The conservatives always like to say that the government should deal with the finances like family with its budget or corporations with theirs. Would anybody want to have a balanced budget law for the family finances, or for corporation finances?
Hillbilly D
July 29th, 2011
6:59 pm
Paddy O
In my opinion, they’ll lie to us either way and our economy has been a house of cards for a long time. I’ve said before that even though he was nutty as a fruitcake on some things, Ross Perot was dead right on NAFTA, I’m for import tariffs, including things sold by US companies that are manufactured in their own plants, if those plants are overseas and I don’t shop at WalMart or buy things made in China. More than once I’ve had a store employee ask me what I was doing, when I’m searching for the info on where something is made, on the box. I even remember when Sam Walton used to use “Made in USA” as a selling point.
F. Sinkwich
July 29th, 2011
7:02 pm
MarkV:
“The approral rating of GWB dropped to 40% in 2006 and went down from there.”
Grow up, please. Your guy sucks. Period.
Instead of tripping down memory lane every time someone points out the incredible stupidity of your Messiah, why don’t you try to defend the idiot.
Oh, that’s right, he’s indefensible.
Linda
July 29th, 2011
7:17 pm
I laugh out loud when anyone on the left calls me a liar, when any idiot or sane person can get on the internet & read the conversation between S&P executive John Chambers & S&P’s investors during a conference call on 7/27 when he said that $4 T would be a good down payment. S&P has already said that it may slash out AAA rating due to the DEBT. NONE of the bills in DC deal with the DEBT.
The US is in trouble with the credit rating agencies, the Wall St. investment banks, the IMF, etc.
We WILL be downgraded.
Linda
July 29th, 2011
7:29 pm
Hillbilly, How do you get around? How do you get to Wallmart? How do you get to work, etc? Where does your gas come from? Do you only buy gas from Texas? How will you light your home since all the CFBs come from China? They are too dangerous to be manufactured in the US. Liberals are a stitch!
MarkV
July 29th, 2011
7:33 pm
I laugh when somebody substitutes a vague, nonbinding statement of one person for his/her reasoning. The debt is a chronic problem, while the debt ceiling issue is an acute condition, a crisis. It is sad to see someone who claims to be edcucated to ignore the warning of a vast majority of economists regarding the debt ceiling issue.
MarkV
July 29th, 2011
7:35 pm
“Instead of tripping down memory lane every time someone points out the incredible stupidity of your Messiah, why don’t you try to defend the idiot.”
Somebody who substitutes insults for arguments is worse than an idiot.
Hillbilly D
July 29th, 2011
7:44 pm
Linda
You’re right I have no control over where my gas comes from. The things I can control, I don’t buy things made in China. How do I get to WalMart? I don’t go there. I buy incandescant light bulbs and will as long as I can get them. And I’m not a liberal by the way, for those keeping score at home.
Linda
July 29th, 2011
7:55 pm
A vast majority of economists & a vast majority of climatologists suggests we should vote.
The fact is that the credit ratings agencies plan to downgrade our worthiness, with good reason. Why they did not do it long ago baffles me. Our debt is unsustainable. Nothing being debated in Congress addresses it. Obama wanted a clean debt ceiling, a blank check. Had it not been for the 87 new members in congress, many of which were supported by the Tea Party, he might have been granted his wish. By tying the debt ceiling to the debt, the Tea Party appears to have saved the USA about $2 T. Go Tea Party!
MarkV
July 29th, 2011
8:04 pm
“Obama wanted a clean debt ceiling, a blank check.”
That is the kind of demagoguery that is so common in these debates. Raising the debt ceiling is not a “blank check.” It is merely a recognition that we must pay our obligations.Tying the debt ceiling to the debt is blackmailing the country, not Obama or Democrats, to go along with the ideas of one group of people.
Lil' Barry Bailout
July 29th, 2011
8:05 pm
MarkV: …someone who claims to be edcucated…
——————-
If you’re going to call someone stupid, you might want to pay attention to your spelling.
MarkV: Another victim of public schools.