New reports show an economy grinding down to nearly a full stop in growth. How soon until we get recession?
It has been about a month since I posted about how mainstream sources are admitting that “the economy is sinking.” In that month, the situation has only gotten worse.
Here’s the Washington Post headline: “U.S. economic growth slows to 0.2 percent, grinding nearly to a halt.”
The U.S. economy ground nearly to a halt in the first three months of the year, according to government data released Wednesday morning, as exports plunged and severe winter weather helped keep consumers indoors.
The gross domestic product grew between January and March at an annualized rate of 0.2 percent, the U.S. Commerce Department said, adding to the picture of an economy braking sharply after accelerating for much of last year. The pace fell well shy of the 1 percent mark anticipated by analysts and marked the weakest quarter in a year.
The economy had expanded at a rate of 2.2 percent in the final three months of 2014 and at a rate of 2.4 percent for the year.
Economists, employers and policymakers now face the challenge of determining whether the slowdown is temporary — stemming mostly from an unusually snowy winter in the Northeast — or a sign of broader problems.
Right, the challenge of how they can con the public for a few more months.
While the headline refers to an economy grinding “nearly to a halt,” you know it will only take one more revision for the “experts” to admit that it has, in fact, halted. Or else it will take another month of grinding and then economic growth will stop—if not begin to recede.
Naturally, the article spends column inches pretending the economic news was merely the result of winter weather. But then it trots out other economic superstitions.
And more recently, consumers are electing to save rather than spend the extra cash they’re getting from cheaper gasoline.
Cheaper oil, too, is weighing on the economy. Since the global price of oil began its free fall last year, the U.S. oil rig count has fallen by more than half. American drillers, after several years of rapid expansion, reduced investment by more than $25 billion in the first quarter, according to Commerce Department statistics. Had oil investment remained flat in the quarter, the GDP would have been 0.6 percentage points higher.
If you think cheaper oil or a refusal to waste money is hurting the economy, I guess you must be an educated citizen. But for non-brainwashed people, wasting money and paying more for a commodity does not help the economy.