The Economy Is Worse Than You Think

June 10, 2011 05:01


Expect more bad news until someone enacts a plan to bring deficits under control without raising taxes.

By MARTIN FELDSTEIN at The Wall Street Journal

EXCERPTS:

The policies of the Obama administration have led to the weak condition of the American economy. Growth during the coming year will be subpar at best, leaving high or rising levels of unemployment and underemployment.

The picture is even gloomier if we look in more detail. Estimates of monthly GDP indicate that the only growth in the first quarter of 2011 was from February to March.

The data for May are beginning to arrive and are even worse than April’s. They are marked by a collapse in payroll-employment gains; a higher unemployment rate; manufacturers’ reports of slower orders and production; weak chain-store sales; and a sharp drop in consumer confidence.

The administration’s most obvious failure was its misguided fiscal policies: the cash-for-clunkers subsidy for car buyers, the tax credit for first-time home buyers, and the $830 billion “stimulus” package.

FULL ARTICLE



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