As Glenn Reynolds Would/Eventually Will Put It . . .
By Pejman Yousefzadeh Posted in Economic Growth | Economy — Comments (1) / Email this page » / Leave a comment »
The economy turned in a better -- but still subpar -- performance in the first three months of this year, mostly spurred by stronger sales of U.S. products overseas.
The 1 percent annualized increase in gross domestic product, announced by the Commerce Department on Thursday, marked a slight improvement from the government's previous estimate of 0.9 percent growth for the January-to-March quarter. And, it showed the economy logging stronger growth than the feeble 0.6 percent pace registered in the final three months of last year.
Still, the first quarter's performance pointed to a fragile economy, shaken by housing, credit and financial debacles. That has made people and businesses more cautious in their spending and investment, restraining overall economic activity. More normal growth would be along the lines of a 2.5 percent to 3 percent pace, analysts said.
Obviously, no one thinks that this is ideal. But a recession it ain't so perhaps we can stop with the talk that this is the worst economic crisis since the days of Herbert Hoover. That kind of melodrama won't solve any problems for us.
This probably is the worst economy since Hoover ca. 1929.
All we need now is for the Fed to raise rates, and the Congress to raise income tax rates and turn its back on free trade to turn the corner until 1930. And then demogogue the economy to break the backs of consumers and propose all manner of regulations to keep business from rebounding to bring about 1933-1939.
Oh wait . . .
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