The unprecedented economic boom unleashed by Obama’s debt spending as claimed by Newsweek and Bob Beckel, has slowed from 5.6% in the 4th quarter of 2009 to just 3% in the 1st quarter of 2010. The Stock Market has declined 11% in the last month due to the European debt crisis and Obama’s spending policies. These facts don’t matter. The media is still pushing the Obama boom theme and it seems to be having an effect. Two months ago the GOP had an average lead in the Congressional races of 3-5%, now in most polls they are trailing the Democrats. Clearly the Progressive media’s propaganda is working and the GOP is blowing it by not getting aggressive. The 3% growth is being called healthy in contrast to the Bush years when it was called stagnant.
WASHINGTON (AP) – The economic rebound last quarter turned out to be slower than first thought, one of the reasons unemployment is likely to stay high this year.
The economy grew at a 3 percent annual rate from January to March, the Commerce Department said Thursday. That was slightly weaker than an initial estimate of 3.2 percent a month ago. The new reading, based on more complete information, also fell short of economists’ forecast for stronger growth of 3.4 percent.
The reasons for the small downgrade: consumers spent less than first estimated. Same goes for business spending on equipment and software. And, the nation’s trade deficit was a bigger drag on economic activity.
In a separate report, the Labor Department said Thursday that the number of newly laid off workers filings claims for unemployment benefits fell by 14,000 to 460,000 last week. The decline came after claims had risen by a revised 28,000 in the previous week, the largest gain in three months.
The latest level of claims is slightly higher than it was at the start of the year. That shows the nation’s workers are still facing tough times even though the overall economy is growing again.
Read the rest: Economic rebound slowed last quarter
The truth of the matter is that there is no economic boom. What we are having is stable government creating artificial growth that is not enough to reduce unemployment.
Here is a key quote from the article:
Economists say it takes about 3 percent growth to create enough jobs just to keep up with the population increase. Growth would have to be about 5 percent for a full year just to drive the unemployment rate down 1 percentage point.
After the last severe recession in the early 1980s, GDP grew at rates of 7 to 9 percent for five straight quarters and the unemployment rate dropped from 10.8 to 7.2 percent in 18 months.
What happened in the early 80’s to produce that growth and reduce unemployment? The growth was based on the Conservative economic policies of Ronald Reagan. The policies of Barack Hussein Obama are based on redistribution of wealth and increasing the debt. This is not working and to make matters worse, despite the increase spending and low interest rates, the amount of money (M3) in the US economy is at depression era levels. Clearly the media spin of the Obama economic boom is a lie. The Republicans, by not exposing this lie, are being cowards and are blowing this political opportunity to destroy Progressivism.
Tags: Obama Economic Boom, Progressive Propaganda, Ronald Reagan
