Obama’s Economic Slide
J.D. Foster /
The Commerce Department today revised down its estimate for second quarter gross domestic product from 2.4 percent to 1.6 percent. This is not a sign of a weakening economy but a weak economy last spring. The weakness was especially pronounced as the bulk of what growth did occur was due to a building of inventories and a temporary (and now apparently reversed) blip in home sales.
Most of the data since the second quarter ended—from industrial orders to labor markets to housing—has worsened further. What we are seeing is an economy that tried to recover last winter, slowed, and is now sliding steadily to stagnation. Not yet a recession, it is certainly the Obama slide.
The great American jobs machine has stalled. Whether it revives anytime soon or continues to flounder is the 7-millions-jobs question. What is certain is that the economy should be steadily strengthening. The basic forces of growth and prosperity remain in place, much as they have always been. But something is holding the economy back. That something is Washington.