July 30, 2015

Q2 Economic Growth Disappoints

Today the Commerce Department’s Bureau of Economic Analysis reported that inflation-adjusted GDP grew at an annualized rate of 2.3 percent, below expectations, in the second quarter of 2015. The Wall Street Journal had predicted 2.7 percent growth. BEA also upgraded the first quarter estimate to a paltry 0.6 percent.

GDP Components Change Q1 2015

This news is disappointing in that growth seems to be stuck in a range somewhere between disappointing and barely acceptable. Very good growth levels remain elusive. This is the result of President Obama’s attempt to micromanage the economy with the stimulus bill, Obamacare, Dodd-Frank, EPA regulations, and other measures. Compared to the best Obama quarter of 4.6 percent (reached just twice during his presidency), the Reagan policy of freeing the economy to create jobs led to higher growth, including one quarter in which growth reached 9.4 percent.

Obama Economic Growth Disappoints

Issue Tag: Economy