The following is an excerpt from IRWIN M. STELZER | July 21, 2012 | TheWeeklyStandard.com |
Slow, slower, and maybe even stop—that’s a quick summary of how Federal Reserve Board chairman Ben Bernanke sees the U.S. economy. The economy grew at an annual rate of 2.5 percent last year, 1.9 percent in the first quarter of this year, “and available indicators point to a still-smaller gain in the second quarter” he advised congress last week. Household spending is slowing down because “confidence remains relatively low” (at its lowest level since December); numerous factors (a supply overhang, unavailability of credit) “impede growth” in the housing sector; manufacturing production has slowed; business investment has “decelerated”; there is “further weakness ahead” for investment demand; and “reduction in the unemployment rate seems likely to be frustratingly slow.”
Now for the bad news. “U.S. fiscal policies are on an unsustainable path.” In the hope of forcing the politicians to do something to prevent the economy that is due to fall off a…..
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