Well, we are coming close to the end of the recession and we might eventually see growth in the later part of this year.
The Bureau of Economic Analysis reported that GDP, or the total output of goods and services produced in the U.S., dipped by an annual rate of 1% in the spring. The advance estimate bettered most forecasts, as many economists expected a 1.5% slide.
The only problem is that consumer spending is still in the doldrums
However, consumer spending, or the lack there of, remains a nagging weight on the economy. The report noted that consumer spending slid 1.2% during the quarter, as compared to a 0.6% upswing during the first quarter. Consumers are likely to keep their wallets tucked in tight as unemployment figures continue to falter.
Too bad the failed stimulus did not have some more things in it similar to "cash for clunkers" that gave people financial incentives to buy things. If the Dems are serious about Stimulus 2 they should call it the "tax cut for everyone" and cut payroll taxes for 1 year or something like that. I think Americans will sign on for substantially more money in their paychecks.
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