by Mitch Kokai
Senior Political Analyst, John Locke Foundation
No wonder Hillary doesn’t want to talk about the economy. ?
We got revised GDP numbers from the Commerce Department on Friday and the economy actually did slightly WORSE than originally estimated. Growth was 1.1 percent in the second quarter of this year and less than 1 percent for the first six months of 2016. The business sector of the economy has sunk recession territory. Profits are srinking (down 2.4 percent last quarter) so how long can the stock market rise?
The consumer is keeping the economy out of negative territory, but that’s only because we are spending more than we are earning.
How long can that go on? About as long as the housing bubble could inflate without bursting.
For years the polls have shown that Americans are hyper-concerned about the economy and job security. That was when the economy was growing at a meek 2 percent. Now at 1 percent, we aren’t just treading water, more families are being plunged underwater.
This is some recovery. Under Reagan we had growth rates quarterly of 5, 6 and even 7 percent. Economists in the ’80s worried about overheating. Too much growth. Now growth is nowhere to be seen – except for those at the very top of the income ladder.
The Democrats who keep saying how well the economy is doing seem to be living in an alternative universe. And that’s probably because so many of the leftwing pundits and economists live and work in Washington DC, which really is doing just fine – thank you. DC is booming thanks to the tribute taxpayers from real America send each month to the capital. Three of the five wealthiest counties are around DC. That tells you everything about who is getting rich off liberal government expansion policies.