Stuck In The Slow Lane

The American economy remained stuck in the slow lane over the first three months of the year, expanding by a modest 0.6 percent annualized rate, the Commerce Department announced Wednesday morning.

The weak performance reflected the increasingly thrifty inclinations of American consumers in the face of plummeting real estate prices, tightening credit and a deteriorating job market. Economic growth was also hampered by a continued pullback in construction and business investment.

The only factors preventing the economy from sliding backward were the growth of American exports -- aided by a weakening dollar -- and a buildup of inventories by businesses. Exports and inventories set aside, final sales of American goods and services domestically dipped at a 0.4 percent annualized rate in inflation-adjusted terms, the first decline since the end of 1991.

Consumer spending grew at an anemic 1 percent annualized rate, down from 2.9 percent in 2007 and 3.1 percent the year before.

"You're seeing a sharp slowdown in domestic demand," said Michael T. Darda, chief economist at MKM Partners in Greenwich, Conn. "This is stall-speed growth."

Read the whole story here.

Comments

[WIpatriot]

Coming soon to an economy near you: Deficit spending growth!

[VivaZapata]

couldn't help but notice the pictures used to accompany this article juxtaposed to the picture of borrow and spend ben bernanke in an article on the fed rate cut. the connection is of course more than pictorial. the weakening of the dollar is just one more capitalist trick to levy tax on pensioners and hard working people without much in the way of salary increase prospects. Dickensianly speaking, these bankers are ruthlessly cruel bastards who need to be forced to live in the conditions of the poorest of the poor for as many years as it takes to develop a sense of compassion and concern.

[filo]

This is what we get for putting a failed, corrupt oil man in the White House. He has let big business do anything they want and corporate greed has hijacked our country. I don't fault CEO's for making big bucks but what a lot of them get is just obscene.

[Enid]

The Ministry of Numbers?

[WIpatriot]

Ministry of Lying Statistics, I say.

[Fler]

What if even half of all large public and private businesses/companies/corporations with large commuter workforces could find a way to shift the traditional 40-hr workweek to four 10-hour days vs. five 8-hour days? Same amount of work hours but less congestion on the roads, less gas consumed in a four-day work commute, and people would have an extra day to spend the money they didn't use to buy gas (hopefully to buy U.S. products or services...) Sick leave use would probably be lower - employees would have more to lose by taking a sick day they don't really need, and if they really are ailing have an extra day to rest and recuperate... morale would likely improve (in my workplace, for sure!) Perhaps tax credits of some sort as an incentive to the business community? Say, if a certain percentage of the workforce is in compliance within a certain amount of time (would three years be enough time to give businesses time to plan a way to really make it work, AND see quantifiable results?) I know it could not work for every business but it's worth debating.

[vippy]

Most employees do 10 hours worth of work anyway without getting paid. Some forfeit breaks,
some lunches and stay longer just to get caught up. I have noticed this quite often being in the
USA versus Europe. Also, I am strongly opposed to VOLUNTEERS of any kind, because it
eliminates paying jobs. Think about it. Self-serve checkout lines means your children or
grandkids won't have a job!

[torrrep]

That's not such a bad idea. The problem is many companies operate globally and to only be available 4 days a week would not be conducive to business. Unless you could figure out a staggered work schedule.

[timothe]

OK...let's do some math.

Let's say you are driving down Hwy 80 at 65 mph for 12 hours. You get to Iowa after the 12 hours and then you drive at 66 mph. Which speed is slow?

According to the New York Times, 66 mph is slow.

Liberal math is fun!!

[WIpatriot]

That's Republican math, you are still confused.

[Woggles]

I just got back the Promenade Cove area in Newport Beach, CA. Great food, great help, everybody was dressed pretty nice. I didn't see any signs of a recession.

Are we just looking at the glass half full here?

[marko77]

W keeps saying our economy is fine. Well, it is for him and his millionaire and billionaire buddies and that's all he cares about. As a result, he's telling the truth. This is part of Rove's genius - prop up a guy who speaks like a third grader, but identifies only with millionaires, and whatta ya got? W Bush. Well, there goes our once strong country.

[JohnKemp]

No recession? Really?

Economy up 0.6%? Really? (Same as first quarter 2007)

WOW!

Next the boobs will find out that there is no housing "crisis" either.

Have no fear, though. The same rocket scientists who "missed" (damn, imagine that) the first quarter are now telling us that the recession will hit during the second quarter.

Plenty for the MSM to run with. Not to mention the Dems.

[rollingdivision]

Recession is by definition, two consecutive quarters of negative economic growth. The last report indicates we have just completed six years of continuous economic growth. Though the economy have slowed, the US is not in recession.

[vippy]

I bet the GDP growth of .6% is attributed to the rising gas prices. And we have to
use gas in order to go work. Plus the population is growing every day, so taking this
into consideration we did have a negative growth already!

[WIpatriot]

Riiight. And the Ministry of Lying Statistics will keep it that way.

[marko77]

"Though the economy have slowed, the US is not in recession." by rollingdivision


rolling: OK, the US is not in recession but we're paying $4.00 for a gallon of gas and about $40.00 for one bag of groceries. Sweet!!! Meanwhile, most high school graduates will be bagging groceries or working the third shift at the local 7 - 11. And we owe trillions to China, which was once considered a Third World Country, because we no longer produce or sell anything to ourselves as Americans or to any other country anymore.

You know what, I agree. We're not in a recession, but we are totally fucked economically, although we haven't been squarely hit in the face yet with it......yet.

[JohnKemp]

Perhaps my sarcasm was too cutting.

You're exactly right; we are not now & have not before been in a a recession.

Much to the disappointment of the libs.

[gevan]

Let's not put the blame for the 0.6 percent on the expanding illeagal alein population. Let's just say "welcome to the Chinese Century." Thanx, President Bush!

[vippy]

Not just Bush, Clinton started it let us not forget this!

[marko77]

"welcome to the Chinese Century." Thanx, President Bush!" by gevan

Yes, it can be called "The Chinese Century" because W and the Neo-cons plus other leading US business leaders have actively promoted it.

Why employ American workers when goods can be produced in China for 1/20th of the cost, with all the profits going to American Companies who invest and build there? And what work is left for millons of US citizens? Try the third shift at the local 7-11 or as a greeter at Wal-mart. And the rest? Well, teens and US young adults who won't work for minimum wage will sell drugs and terrorize thier neighborhoods, since in America everyone is free to "live the good life." Meanwhile, a small minority of Americans are comfortably tucked away in their gated communities. How sad and pathetic.

[torrrep]

That's funny. I'm not rich. I'm not even in the top 30%. I don't live in a gated community. I drive a Pontiac Grand Am that will be paid off in November. I live in a 2 bedroom condo that is 35 years old. I only work part time though my wife is full time. And guess what? We are doing just fine. We keep hearing how bad the economy is yet I still have to wait for a table at a restaurant. I still have to wait in line for gas. I pay the same for gas and groceries as everyone else. The problem is not with the economy. Yeah it's slow but guess what? That happens. I think the primary problem is that most Americans don't know how to manage their money very well. They buy the newest and biggest toys. They use credit cards instead of paying cash. They don't save any money, they work minimum wage jobs and have 3 or 4 kids. Are people struggling? Of course. But you have that even when the economy is good. I know people that are getting by on a lot less than I am making so I it can't be that bad. I don't see people starving in the streets. I don't see empty streets when I go out. The freeways are full. The side streets are worse. Everyone must be going somewhere. But I guess you can count me in the "small minority".

[WorkingClass]

Can anybody give me one reason I should believe these numbers?

[torrrep]

Because if they were Obama's numbers you would be praising how good he is doing.

[WIpatriot]

Kinda like you are doing now?

[WIpatriot]

Well if you were a Republican, you wouldn't even have asked that question.

[ErnestineBass]

CALLING ALL TROLLS!!!

CALLING ALL TROLLS!!!

heh heh

[Nommo]

We're on a long line at Wal Mart's. We'll be here as soon as we tap your gas tank.