It comes as no surprise that in Barack Obamas last year as president the U.S. economy has all but stopped growing.
Obama has had relatively little if anything to say about the economy lately and with good reason. What can he say? Except maybe Im sorry. I dont know why this is happening.
The president is briefed by top aides each morning on major developments at home and abroad so he couldnt have missed the Commerce Departments bad news.
Heres how Reuters worldwide news service put it in their lead shortly after 8:30 a.m. Thursday:
U.S. economic growth braked sharply in the first quarter to its slowest pace in two years as consumer spending softened….
The gross domestic product or GDP the governments broadest measurement of the economys annual growth rate increased at a 0.5 percent annual rate the weakest since the first quarter of 2014…
The Democrats have been ignoring the economys troubles for years without a peep of criticism from its leaders in Congress or maybe even an apology to the voters about why Obamas economic scores have rarely broken out of the 2 percent growth range.
The Democrats paid a price for their silence suffering big losses in the 2012 and 2014 congressional elections.
Hillary Clinton on a fast track to become the Democrats 2016 presidential nominee has side-stepped the subject altogether too. Maybe because she hasnt a clue how to turn the economy around or has been busy raking in millions on the speaking circuit to utter a discouraging word.
Its not as if the Democrats were blindsided by the U.S. economys decline. It was in a near free fall in the last three months of 2015 when it slowed to a bare 1.4 growth rate.
That elicited yawns from Obamas party leadership on Capitol Hill despite a growing number of business layoffs a sharp decline U.S. exports and what Reuters said was a build-up in unsold merchandise clogging up warehouses.
Another worrying sign behind the economys decline is consumer spending which accounts for more than two-thirds of all economic activity.
It slowed to a tepid 1.9 percent the slowest since the first quarter of 2015 and marked a deceleration from the fourth quarters 2.4 percent rate Reuters said.
The Federal Reserve notorious for issuing exaggerated forecasts of an economic comeback was virtually mum as well about the economys collapse.
Despite its past promises that the central bank will keep to its plan to raise interest rates in the months to come the Fed left its benchmark rate unchanged Wednesday but said relatively little else -- except a terse statement that it would continue to closely monitor inflation indicators and global economic and financial development.
While the Fed grudgingly acknowledged the economys slow down its watered down response was disappointing.
The economys sharp nose dive spoke volumes about its capitulation in the face of the Obama economys dismal performance and the Feds refusal to face reality.
The economys lethargy cant and wont be solved by monetary policy alone as former Fed Chairman Ben Bernanke often reminded us in the Bush years.
It will need a sharp turn-around in fiscal policy including pro-investment pro growth pro-job tax cuts iron-clad spending reductions and deregulatory reform to unlock the economys animal spirits.
But were not going to get those reforms from Obama or a Democratic Congress nor will they come from Hillary Clinton whose economic agenda has Big Government and Higher Taxes written all over it.
What we need now is a new experienced leader who understands the power of capitalism to get our economy moving again by restoring Americas entrepreneurial risk-taking spirit.
Obama came into office telling us that capitalism didnt work and he wanted no part of it.
The market will take care of everything they tell us…. But heres the problem: it doesnt work. It has never worked. It didnt work when it was tried in the decade before the Great Depression. Its not what led to the incredible postwar booms of the 50s and 60. And it didnt work when we tried it during the last decade. I mean understand its not as if we havent tried this theory he said in a speech in Osawatomie Kansas on Dec. 6 2011.
But Obama is wrong. Everywhere it has been tried it has not only worked it has been a spectacular success.
In 1800 the total population in America was 5.3 million life expectancy was 39 and the real gross domestic product per capita was $1343 (in 2010 dollars) wrote Professor James Otteson of New Yorks Yeshiva University in a paper for the Manhattan Institute think tank.
But by 2011 our population was 308 million our life expectancy was 78 and our GDP per capita was $48800. Thus even while the population increased 58-fold our life expectancy doubled and our GDP per capita increased almost 36-fold Otteson continued.
Such growth is unprecedented in the history of humankind he said. And it was due principally to the complex of institutions usually included under the term capitalism.
Near the end of Ronald Reagans successful presidency that ended a severe recession in just two years a liberal critic said he had made capitalism fashionable again.
And once in office Obama admitted to colleagues that he aspired to be a transformational leader like Reagan.
That was not going to happen especially to someone who still believes that capitalism is a disproven theory.
It comes as no surprise that in Barack Obamas last year as president the U.S. economy has all but stopped growing.
Obama has had relatively little if anything to say about the economy lately and with good reason. What can he say? Except maybe Im sorry. I dont know why this is happening.
The president is briefed by top aides each morning on major developments at home and abroad so he couldnt have missed the Commerce Departments bad news.
Heres how Reuters worldwide news service put it in their lead shortly after 8:30 a.m. Thursday:
U.S. economic growth braked sharply in the first quarter to its slowest pace in two years as consumer spending softened….
The gross domestic product or GDP the governments broadest measurement of the economys annual growth rate increased at a 0.5 percent annual rate the weakest since the first quarter of 2014…
The Democrats have been ignoring the economys troubles for years without a peep of criticism from its leaders in Congress or maybe even an apology to the voters about why Obamas economic scores have rarely broken out of the 2 percent growth range.
The Democrats paid a price for their silence suffering big losses in the 2012 and 2014 congressional elections.
Hillary Clinton on a fast track to become the Democrats 2016 presidential nominee has side-stepped the subject altogether too. Maybe because she hasnt a clue how to turn the economy around or has been busy raking in millions on the speaking circuit to utter a discouraging word.
Its not as if the Democrats were blindsided by the U.S. economys decline. It was in a near free fall in the last three months of 2015 when it slowed to a bare 1.4 growth rate.
That elicited yawns from Obamas party leadership on Capitol Hill despite a growing number of business layoffs a sharp decline U.S. exports and what Reuters said was a build-up in unsold merchandise clogging up warehouses.
Another worrying sign behind the economys decline is consumer spending which accounts for more than two-thirds of all economic activity.
It slowed to a tepid 1.9 percent the slowest since the first quarter of 2015 and marked a deceleration from the fourth quarters 2.4 percent rate Reuters said.
The Federal Reserve notorious for issuing exaggerated forecasts of an economic comeback was virtually mum as well about the economys collapse.
Despite its past promises that the central bank will keep to its plan to raise interest rates in the months to come the Fed left its benchmark rate unchanged Wednesday but said relatively little else -- except a terse statement that it would continue to closely monitor inflation indicators and global economic and financial development.
While the Fed grudgingly acknowledged the economys slow down its watered down response was disappointing.
The economys sharp nose dive spoke volumes about its capitulation in the face of the Obama economys dismal performance and the Feds refusal to face reality.
The economys lethargy cant and wont be solved by monetary policy alone as former Fed Chairman Ben Bernanke often reminded us in the Bush years.
It will need a sharp turn-around in fiscal policy including pro-investment pro growth pro-job tax cuts iron-clad spending reductions and deregulatory reform to unlock the economys animal spirits.
But were not going to get those reforms from Obama or a Democratic Congress nor will they come from Hillary Clinton whose economic agenda has Big Government and Higher Taxes written all over it.
What we need now is a new experienced leader who understands the power of capitalism to get our economy moving again by restoring Americas entrepreneurial risk-taking spirit.
Obama came into office telling us that capitalism didnt work and he wanted no part of it.
The market will take care of everything they tell us…. But heres the problem: it doesnt work. It has never worked. It didnt work when it was tried in the decade before the Great Depression. Its not what led to the incredible postwar booms of the 50s and 60. And it didnt work when we tried it during the last decade. I mean understand its not as if we havent tried this theory he said in a speech in Osawatomie Kansas on Dec. 6 2011.
But Obama is wrong. Everywhere it has been tried it has not only worked it has been a spectacular success.
In 1800 the total population in America was 5.3 million life expectancy was 39 and the real gross domestic product per capita was $1343 (in 2010 dollars) wrote Professor James Otteson of New Yorks Yeshiva University in a paper for the Manhattan Institute think tank.
But by 2011 our population was 308 million our life expectancy was 78 and our GDP per capita was $48800. Thus even while the population increased 58-fold our life expectancy doubled and our GDP per capita increased almost 36-fold Otteson continued.
Such growth is unprecedented in the history of humankind he said. And it was due principally to the complex of institutions usually included under the term capitalism.
Near the end of Ronald Reagans successful presidency that ended a severe recession in just two years a liberal critic said he had made capitalism fashionable again.
And once in office Obama admitted to colleagues that he aspired to be a transformational leader like Reagan.
That was not going to happen especially to someone who still believes that capitalism is a disproven theory.
