Chalk up another triumph for President Downgrade:
The government cut its calculation of U.S. growth in the second quarter to 1.3 percent from 1.7 percent in its third and final review, citing less consumer spending and business investment than previously estimated. Consumer spending rose 1.5 percent in the previous quarter instead of 1.7 percent as initially forecast.
And business investment, excluding residential housing, was revised down to a 3.6 percent increase from 4.2 percent. The government also said corporate profits climbed $21.8 billion in the second quarter, compared to a $53.0 billion decline in the first quarter. The economy grew at a 2.0 percent pace in the first three months of the year.
(Courtesy of the Wall Street Journal’s MarketWatch.) Naturally, the media has been obsessively focusing on the arrested decline of residential housing, the only sign of life in Obama’s moribund economy.
Meanwhile, If you’re planning to vote for Barack Obama, try not to think about the fact that durable goods orders just suffered their biggest drop in over 3 years – a loss off 13.2 percent in a single month. That’s probably all George Bush’s fault somehow. He’s probably intercepting the durable goods order sheets before the reach the manufacturer and shredding them, just to make Obama look bad.
The Weekly Standard reports that the Obama years have knocked 5.7 percent off the real income of the average American family. That’s probably Bush’s fault too. Except that incomes actually fell faster during the Obama “recovery” than the recession. And it’s been even worse for black Americans, who lost 11.1 percent of their real household income.
“What kind of ‘recovery’ compares unfavorably with the recession from which it’s ostensibly recovering?” asks Jeffrey Anderson of the Standard. That question is probably racist, and he should apologize for asking it, or at least sell his birthday presents and send the money to the Obama campaign to make restitution.
Fox News reports business owners openly stating that they won’t hire anyone because they’re terrified of the $600 billion tax hike Obama is about to drop on them, with the expiration of the “Bush tax cuts.” Furthermore, “A survey by the National Association of Manufacturers (NAM) and the National Federation of Independent Business (NFIB) reveals 55 percent say federal regulations, taxes, government spending and the cost of health insurance have hurt the economy and their businesses. And more than two-thirds say there is too much uncertainty to expand or hire new workers.”
“Experts say it is about risk and reward, and business owners are not going to gamble their money when they have no idea what the government might impose,” continues the Fox report. Here, let me translate that for Obama voters: Racist greedy fat cats don’t want to give our brilliant President the money he needs to build roads and bridges.
Of course, Democrat dogma holds that the “fiscal cliff” is caused entirely by greedy people who want to keep their own money, instead of giving it to the government for “deficit reduction.” This is like declaring bankruptcy after running up $100k in credit card bills, and blaming it on your employer for refusing to give you a ten-cent raise. The naïve faith that Obama and his allies would actually use new tax revenue for deficit reduction, instead of fresh spending, is among the most powerful and irrational superstitions on the planet. It’s as stubbornly ignorant of history, and current events, as the belief that four more years of Obama policies will magically begin producing better results.