July 29, 2016

Obama Running Out of Time to Grow Economy

  • The U.S. economy grew at a 1.2 percent in the second quarter of 2016.
  • The previous two quarters grew at a revised rate of below 1 percent.
  • President Obama has not worked with Congress on pro-growth policies during his presidency.

The U.S. economy grew at an inflation-adjusted rate of 1.2 percent in the second quarter of 2016, according to the Commerce Department. While this growth is higher than the previous two quarters, it is less than half of the 2.6 percent growth economists had expected. The previous two quarters (Q1 2016, Q4 2015) were revised down to below 1 percent.

GDP Components – Change in Q2 2016

2016 Q2 gdp components change graph

Gross private domestic investment, necessary for future job growth, declined for the second straight quarter. This is the first time this has happened in more than three years. President Obama has done little to encourage domestic investment during his time in the White House. Instead, he grew government when Democrats controlled Congress and has fought the Republican Congress on pro-growth, low-regulatory policies. Presidents Reagan and Clinton, by contrast, worked with congresses controlled by the other party to encourage private sector job growth.

Obama’s Economic Growth Disappoints

Obama economic growth chart reagan and clinton

Issue Tag: Economy