Joe Gilbertson | Jun 19, 2022 | 10
The Economy has Another Disappointing Quarter Under Obama
The second quarter growth rate numbers are in and again, the US economy performed “well below” the expectations of economists. According to Bloomberg, the economy only grew by 1.2%. It was predicted this percentage would be much closer to 2.5%.
“Gross domestic product, the broadest measure of goods and services produced across the U.S., grew at a seasonally adjusted annual rate of 1.2% in the second quarter, the Commerce Department said Friday. The figure was well below the 2.6% growth economists surveyed by The Wall Street Journal had forecast,” writes The Wallstreet Journal.
So, where specifically is the economy suffering the most?
“We’re just muddling through,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York and who predicted just a 1 % increase gain in second quarter GDP to Bloomberg. “Consumer spending looks good, but the problem is that the rest of the economy is soft. The economy remains vulnerable to downside risks. The Fed is right to be cautious.”
Bloomberg reports that residential and business spending is down by 3.2% this quarter, the most it has been within the last seven years.
The Census Bureau also announced that the GDP growth for the first quarter has been revised to 0.8%, instead of the previously reported 1.1%.
If economy continues to underperform, Obama will be the only president in US history to never have the economy growth reach at least 3%.
Clinton defended Obama’s progress and said he deserved more credit for “improving” the economy.
“But, even more important than the history we make tonight, is the history we will write together in the years ahead. Let’s begin with what we’re going to do to help working people in our country get ahead and stay ahead. Now, I don’t think President Obama and Vice President Biden get the credit they deserve for saving us from the worst economic crisis of our lifetimes. Our economy is so much stronger than when they took office,” said Clinton at the Democrat National Convention last week.
But, the facts tell a very different story. The growth of the economy has been extremely disappointing in both of Obama’s terms.
Here are the GDP growth rates from the last seven years:
2009: -2.8 %
2010: 2.5 %
2013: 1.5 %
This is no way a major recovery. The mainstream media has consistently said that 2016 was supposed to be the year the economy returned to “normal.” Not to mention, the country has collected a significant national debt under Obama. It’s not going to be easy for the next president to deal with the economic disaster.
If Clinton is elected, it will only continue to get worse. She plans to increase income taxes, business taxes and “fairness” taxes significantly, which will be detrimental to the economy.