The 1 Percent Economy
by Washington Times
August 29, 2016
Source: Washington Times
Is this really the best that the great American economic engine can do? Is this really morning in America, as Hillary touted in her speech last month to the Democratic National Convention (stealing that famous line from Ronald Reagan’s 1984 campaign)?
The Commerce Department issued revised numbers on the Gross Domestic Product (GDP) last week and they reveal an economy that actually performed worse than originally estimated. Growth in the second quarter of the year reached only 1.1 percent, and less than 1 percent for the first six months of 2016. The business sector of the economy has sunk into what economist Larry Kudlow calls “a soft recession.” Profits were down 2.4 percent in the previous quarter, which raises the questions for investors: How long will the stock market boomlet last?
The only thing keeping the economy out of “negative territory,” in fact, is the willingness of the consumer to spend more than he makes. But how long can he keep doing that?
The Democrats who boast that the economy is doing well are living on an alternative planet, perhaps Pluto. The liberal pundits and economists shouting hosannas live and work in Washington, which actually is doing pretty well. It nearly always does, thanks to the tribute that taxpayers from the real America send each month to the capital. It’s a scene from “The Hunger Games.” The capital feeds off the people in the states.
A new study by the National Center For Policy Analysis calculates that Hillary’s economic plan will eventually shave 1 percent off the Gross Domestic Product, which would put the economy at zero growth. There’s even more of this wonderful news. The deficit is expanding again and looks to add $600 billion this year. The accumulation of debt is headed to $1 trillion on current course. Some states face a rise in Obamacare premiums of 20 percent this year. The Financial Times estimates that the nation is still short 1 million manufacturing jobs from where it was in 2007.
It’s still “the economy, Stupid,” and Donald Trump should talk about these abysmal economic developments, and emphasize tax cuts, deregulation, American energy production and repeal and replacement of Obamacare. He should talk about little else. Hillary Clinton avoids talking about the economy as if it were the bubonic plague. Does any sane person think raising taxes on the back of these flimsy numbers is a good idea?
The No. 1 issue is nearly always jobs and the economy. Her message of more of the same condemns everyone to the misery she never has to worry about. If this is “morning in America,” it’s a cold, rainy, miserable morning indeed.