While 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
