Patterico's Pontifications

7/27/2012

Breaking: Obama’s Economy Still Sucks

Filed under: 2012 Election,Economics,Obama — Patterico @ 7:31 am

When the L.A. Times can’t spin it for you, man, it’s time to hang it up:

U.S. economic growth slowed further in the second quarter as consumers cut back on spending and businesses curbed their investments, the government reported Friday.

The economy expanded at a sluggish annual rate of 1.5% in the April-June quarter, down from an upwardly revised 2% growth pace in the first quarter and a 4.1% increase in the final quarter of 2011.

The latest reading of the nation’s gross domestic product — the total value of goods and services produced — was slightly better than analysts’ expectations of a 1.3% gain.

Still, the deceleration confirmed that the economy has slipped into another spring stall. The loss of momentum raises the risks of more trouble ahead as Europe’s economic problems hurt American exports and manufacturing, and growing angst about the so-called fiscal cliff — looming tax increases and government spending cuts — threatens to further weaken consumption and hiring by businesses.

An economy growing at a 1.5% pace is consistent with a monthly growth of less than 100,000 new jobs, said Sung Won Sohn, an economist at Cal State Channel Islands. “That’s not enough to take care of new workers coming into the labor force, let alone rescue the unemployed,” he said.

Better than expected; worse than it’s been.

I can’t figure out why massive government spending hasn’t done the trick!

31 Responses to “Breaking: Obama’s Economy Still Sucks”

  1. Ding.

    Patterico (feda6b)

  2. It’s teh economy, stoopid!

    Icy (5ef891)

  3. Is there any doubt that President Obama thinks this is all about him and he just can’t catch a break?

    DRJ (a83b8b)

  4. His plan worked.

    SPQR (26be8b)

  5. Your headline should be this:

    REPUBLICAN ECONOMIC PLAN IS WORKING
    (Thwarting Obama’s every attempt to get the economy going)

    That, of course, will bring derision from you and your minions in this little room. But independent voters get it. And that’s your problem. Who cares about your ideological spin and this daisy-chain of feeding the base? Republicans are fast losing the independent voters.

    Which reminds me: How’s that Romney international exposure workin’ out for ya? You know, the trip in which he shows himself a true statesman.

    Tee-hee-hee.

    Larry Reilly (7a9cbb)

  6. (Thwarting Obama’s every attempt to get the economy going)

    Wait. Are you telling me that Obama’s stimulus plan didn’t pass Congress?

    How’s that Romney international exposure workin’ out for ya?

    At least he didn’t give the Prime Minister a stack of DVDs or the queen an iPod containing his speeches.

    Chuck Bartowski (3bccbd)

  7. Reilly, more of your utter lies. This failed economy is all Democrat owned. Even Robert Reich says so. The GOP has “thwarted” nothing at all and Obama and the Democrats latest move is to raise taxes to further weaken demand.

    And your lies contradict Obama’s own statements about his economic plan working.

    Your comments are amazingly stupid, Reilly.

    SPQR (26be8b)

  8. And Romney’s statement in London made a lot of sense, when you took it in context, something the President says people should do.

    SPQR (26be8b)

  9. “I can’t figure out why massive government spending hasn’t done the trick!”

    Obviously, in the words of the Left, the wrong people are directing the spending.

    2012: Vote for the Mormon, not the Moron!

    AD-RtR/OS! (b8ab92)

  10. You know, I did feel the Earth tremble just a little bit.

    AD-RtR/OS! (b8ab92)

  11. Tee-hee-hee.
    Comment by Larry Reilly — 7/27/2012 @ 8:43 am

    – You can almost picture the drool running down Mawry’s chin.

    Icy (5ef891)

  12. ___________________________________________

    Obviously, in the words of the Left, the wrong people are directing the spending.

    Yep, definitely. Because in their mind, nothing is wiser than themselves, the supporters of Solyndra or — in my neck of the woods — the wonderful governor and legislature in wise, down-to-earth California. The “Golden State” is now going to start pouring billions into a high-speed train that upon opening will be serving mainly the Central Valley, or central California (ie, agriculture-ville).

    The motto of such politicians (virtually all of them registered Democrats) should be: “If it’s good enough for Spain, it’s good enough for us!!”

    bbc.co.uk, July 26, 2012: Europe has already bailed out Spanish banks, now Spain’s regions are clamouring for money from central government – and one of the reasons for this is their lavish spending on white elephant building projects, such as the airport at Ciudad Real, south of Madrid. It has one of the longest runways in Europe but today there are no planes, only hawks and falcons gliding in the still heat over the arid yellow landscape of Don Quixote’s Castilla La Mancha.

    The airport of Ciudad Real opened in 2008 but it closed in April 2012. The luggage trolleys are now trussed together in the car park gathering dust and cobwebs.

    It is not the only white elephant to stomp across Spain’s landscape. It is merely one of the herd, a monument to the country’s burst construction bubble which brought down its banks.

    “We had an attack of wealth, we didn’t know how but suddenly we were rich,” says Miguel Angel Bastenier, senior columnist at the left-of-centre daily El Pais. “There was such a frenzy for investing money and people got inebriated.”

    “You might think the airport failed because of the crisis, but I am convinced that the shareholders never thought it (the airport) would work. The only profit in this airport was the building of it,” says local investigative journalist Carlos Otto.

    The official bankruptcy report for the airport seems to back this up. It says: “The loans taken out were enough to cover the construction phase but no thought was given to the investment needed to make the airport function as a business.”

    This lack of transparency is one of the problems that led to Spain’s economic crisis according to David Cabo, representative of Civio, a foundation that lobbies for freedom of information. “Public servants are not used to being monitored, their accountability isn’t common in Spain. It’s terrible because you have many opaque layers of government and each of those control public money.”

    ^ I still recall a researcher at a university in Spain saying a few years ago that the massive subsides given to the alternative-energy industry by the previous Socialist government was a major waste. He warned other countries, particularly the US, to take heed of his message. Fast foward to today and, of course, there have been stories about companies like Solyndra.

    Believe it or not — and in spite of my not wanting to be as foolish as a typical, clueless Obamatron is — there was a part of me at the time of the report from the Spanish researcher that toyed with the possibility that what was true of smaller Spain wouldn’t necessarily apply to bigger, more robust America. “D’oh!” to me.

    And, again, uber-blue California is about ready to start building a high-speed train, which is quite similar to the other various white elephants — specifically gold-plated transportation projects — in modern Spain.

    Mark (7b2cc7)

  13. I dunno if it’s worse than I thought, SPQR. According to the article:

    While the big banks have paid back their loans, the overall program is now projected to lose somewhere between $32 billion to $70 billion, with $109.1 billion owed as of June 30, according to SIGTARP.

    That’s less than 1/10 the initial cost of $750 billion for TARP, so the bulk of it will be paid back. In terms of government wastefulness, 10% is pretty low. (Not saying losing $70 billion is a good thing, but it just wasn’t nearly as bad as I feared it would be.)

    Maybe my expectations for TARP were much lower at the outset.

    Chuck Bartowski (3bccbd)

  14. How’s that Romney international exposure workin’ out for ya?

    Sometimes I worry that what I try to warn people about, like a canary in a coal mine, will be dismissed as crazy talk even amongst right-wingers.

    Until s***heads like s***head shows up and says exactly what I’ve been warning about.

    Steve57 (386607)

  15. I’m waiting for someone else to build me a company before I create any jobs.

    Diffus (48ae73)

  16. – You can almost picture the drool running down Mawry’s chin.

    Is that what that is?!

    Patterico (feda6b)

  17. It’s amazing how those pesky, dumb Republicans keep outsmarting the smartiest man in the whole smarty-smart world.

    Ag80 (b2c81f)

  18. Larry thinks our economic problems are just a conspiracy to hurt Obama.

    That’s … well, I don’t know whether to laugh or sigh.

    I guess Larry admits Obama’s promises to right the economy are a huge failure, then.

    Dustin (73fead)

  19. This president’s disastrous policies and feckless cluelessness have put millions of people at risk. And it’s a sad fact that it didn’t have to be this way. Obama made a conscious choice to fundamentally transform America and – to that end – he’s added millions more to the welfare rolls.

    He’s a sham, his administration is a travesty and he’s made the U.S a laughingstock. The first Tuesday in November can’t come soon enough.

    Colonel Haiku (369d4c)

  20. 5. “Republicans are fast losing the independent voters.”

    Listen up fool, Indies include the purest conservatives ‘the room’.

    Moreover, Bootblack is losing liberal support, Gallup has Donk enthusiasm at 39% and ebbing.

    45% of the popular vote will garner an electoral landslide in November and Dog will be gone by 10:30 EST.

    gary gulrud (dd7d4e)

  21. Ya know iffin I was a single issue voter, Mormon shellacs ‘debil courtin’ as a hedge’ atheist all day long.

    gary gulrud (dd7d4e)

  22. Just a couple weeks after MS cuts its losses on MSNBC, CNN CEO decides he’s embarrassed himself enough.

    Resign Urkel, or are you denser than news readers?

    gary gulrud (dd7d4e)

  23. I know I’m a broken record, especially after Dow brokeback over 13K today, but the pace of DOOM is set to pick up by the end of next week.

    The ECB big talk that goosed the Market will produce nothing, Muni renewals are going to begin failing, and Spanish banks start going bust.

    By the convention in Charlotte it will have become a requiem.

    gary gulrud (dd7d4e)

  24. I get that Central Planning will get next quarter’s demand for dog sleds wrong on occasion.

    However, the incentive to build many more than mushers ready could just be padding the numbers:

    “Sales of MV”, contributions to GDP past 5 quarters -.53 .05 .63 .31 -.29

    “Output of MV”, contributions to GDP past 5 quarters .05 .03 .55 .72 .13

    Urkel seems to be behind this curve.

    gary gulrud (dd7d4e)

  25. .

    Wonderful! This is just in time for the elections!

    .

    Smock Puppet, 10th Dan Snark Master and Gold Lining Detection Specialist (8e2a3d)

  26. The Obama administration’s own forecast: The White House budget office on Friday projected a $1.211-trillion deficit this year. In fiscal year 2012, the White House downgraded its its projection to a 2.3 percent growth in gross domestic product compared to 2.7 percent when Obama released his budget in February. It lowered expectations in 2013 from 3 percent GDP growth to 2.7 percent. And that does not even take into account the 1.5 percent growth rate in GDP in Q2 2012. So it will probably be worse overall for 2012.

    SPQR (26be8b)

  27. The 2013 budget estimate is for a deficit of just a hair under $1 trillion but that assumes tax increases that are not politically sustainable in 2012 when the current tax rates are scheduled to expire.

    SPQR (26be8b)

  28. We are in a terrible spot not because 0bama failed, but because he succeeded… he had clear choices on policies and he made them. America is right where 0bama wants it to be.

    In. A. Bad. Spot.

    Colonel Haiku (5af332)

  29. “Obama spent very little time in business, but he did have a job at a company called Business International for about a year after he graduated from Columbia University in 1983. The book contains new details about the future president’s brief stint in corporate America.

    Obama was a low-level editor in Reference Services, working on reports describing economic conditions in various foreign countries. By all accounts, he disliked the work, not just because it was pedestrian and boring, but because it was in business.

    “He calls it working for the enemy,” Obama’s mother, Ann, wrote after a phone conversation with her son, “because some of the reports are written for commercial firms that want to invest in [Third World] countries.”

    http://washingtonexaminer.com/york-obama-saw-corporate-job-as-working-for-the-enemy/article/2500325

    Colonel Haiku (d1abfb)


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