And the numbers are in. April-June growth in business and trade up 1.3%, a lot lower than expected, plus a real shocker, the near 2% growth of the first quarter of the year was revised. It was only 0.4%, almost nothing at all.
The “slow recovery” BS has to be revised too. Something else is going on. Usually after a recession growth really takes off for a while and then things settle down to around 3%. Not so this time. The recession ended two years ago, but there was never any rocket growth and now things are just limping along. And did you notice that prices are going up? The CPI, the main price hike measure went up 3.6% from June 2010 to June 2011 even though gas prices fell a lot in the last month. Almost no worker is getting raises their buying power is down 3.6%. Not surprisingly spending by consumers (you and me, not businesses) rose a teeny-weeny 0.1% in the second quarter. Housing as you know is still in the toilet.
There’s a word for all this. It’s “stagflation”, a mix of stagnation and inflation.
The AFL-CIO noted today that of the new jobs that are being created most are low wage. “Can I take your order, please?” Of course, it has no plan on what to do other than write to Congress.
Someday working people are going to go out in the streets and demand jobs and not go home til they get them.