U.S. Economy Grows Despite the Debt Ceiling Debate
By Krystle Weeks | Friday, July 29th, 2011 | PolicyWhile the debt ceiling debate continues in Washington, the U.S. Economy continued to grow at a slow rate. We should be celebrating, right? Things are looking up. Before you break out the champagne and fireworks, you might want to consider that the GDP (gross domestic product) only grew by 1.3 percent. While 1.3 percent is better than a decline, there are some factors to consider. According to The Wall Street Journal, the meager increase was caused due to a lack of consumer spending, and the reduced expenditures are only going to continue due to the rising rates of inflation and the increased prices for basic commodities, such as food and energy. The GDP will continue to experience these hardships, as many consumers have to prioritize their expenditures.
Another reason why the GDP is experiencing slow growth is due to the rise in unemployment numbers. Currently, the Bureau of Labor Statistics reports that unemployment is at 9.2 percent. This number is expected to increase, as many companies are cutting back their workforce to stay afloat in this economy.
In light of the meager economic growth, one has to wonder if this trend will continue. I would guess that the economic growth will tank before real growth occurs.
Cross posted at Crystal Clear Conservative
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About the author
Growing up in Maryland typically does not yield a Republican. Fortunately, Krystle Weeks was one of the lucky few booted to the Commonwealth for her staunch conservative views. From an early age, she has been debating politics, and since 2006, she has been involved here in the Commonwealth helping Republican candidates to victory. Aside from politics, Krystle is a runner and a dynamite cook. You can email her here. Krystle also blogs at Crystal Clear Conservative and Charm Offensive Cooking.
Comments
One Response to "U.S. Economy Grows Despite the Debt Ceiling Debate"
nteresting to see the stats on this. I’m sure there is some relevance to it, but my worry is, whether this trend will continue or not.
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