The U.S. economy grew at a slothful 1.5% in the second quarter and way below the level needed to create new jobs. Workers and small businesses are losing hope. Yes, Mr. President, "you built that."
Despite our $16 trillion in debt and a bloated federal deficit of $1.2 trillion, Obama and the Democrats keep telling us that we need more spending and intervention in the economy for it to reach "escape velocity," as if the economy were a rocket ship or something.
Obama also likes to say the economy "grows from the middle out," and that America needs "bottom-up prosperity" — two nifty little sayings that, as any economist worth his salt will tell you, are utterly bereft of meaning.
Economies grow when entrepreneurs start businesses and create jobs. That's what creates "the middle," and also what lets "the bottom" rise up. It's that simple.
So let's pause for a minute and consider the reality of this GDP report. In the last six months, the economy has expanded at an annualized 1.7% rate — barely above the 1.4% average since Obama took office in 2009. That's pathetic.
The economy needs to grow 3% or more just to sop up the 130,000 new workforce entrants each month. We've done that in exactly two quarters since 2008.
Looking back over postwar recessions, GDP is usually 15.1% higher at this point in a recovery than when the recession began. Under Obama, it's up just 1.7%.
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