It really is Obama’s third term
Hampered by rising COVID-19 cases and persistent supply shortages, the U.S. economy slowed to a 2% annual rate in the July-September period, the weakest quarterly growth since the recovery from the pandemic recession began last year.
Thursday’s report from the Commerce Department estimated that the nation’s gross domestic product (GDP) – its total output of goods and services – declined sharply from the 6%-plus annual growth rates of each of the previous two quarters.
At the same time, though, rising prices, especially for gasoline, food, rent and other staples, are imposing a burden on American consumers and eroding the benefits of higher wages. Inflation has emerged as a threat to the economic recovery and a key concern for the Federal Reserve as it prepares to start withdrawing the emergency aid it provided to the economy after the recession struck last year.
Thursday´s report from the government, the first of three estimates of last quarter´s GDP, showed that consumer spending slowed to an annual growth rate of just 1.6% from July through September, after a robust 12% annual rate in the second quarter.
The government´s estimate Thursday of a 2% annual increase in GDP last quarter was even lower than economists´ forecasts for a significant slowdown in growth. The effects of the delta variant in keeping some people away from restaurants, retail shops and entertainment venues was seen as a drag on growth.
In September, America´s employers added just 194,000 jobs, a second straight sluggish monthly gain and evidence that the pandemic was keeping its grip on the economy, with many companies struggling to fill millions of open jobs.
Obama has 2.2% growth and was praised for it.
The “most popular President ever with 81 million votes” dipped below that with higher inflation.
Gone is the Bill Clinton “it’s the economy, stupid” principle. The Democrats are all about meager growth and inflation.
And it’s still only the first year of Biden’s first term. It’s only going to get worse from here.