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New GDP Data: Economy 'Sluggish,' 'Far Weaker Than Previously Believed' | Missouri Political News Service

New GDP Data: Economy ‘Sluggish,’ ‘Far Weaker Than Previously Believed’

September 27th, 2012 by mopns · No Comments

The AP reports today, “The U.S. economy grew at a sluggish 1.3 percent annual rate in the April-June quarter, held back by the severe drought that reduced farm production in the Midwest. The growth rate was lowered from a previous estimate of 1.7 percent, the Commerce Department said Thursday.” AFP called the data “far weaker than previously believed” and economist Chris Williamson told CNNMoney, “The 1.3% increase in GDP was the weakest since the third quarter of last year and one of the weakest seen since the recovery began three years ago.” CNNMoney added, “Growth is still frustratingly slow, and economists often say the economy needs to expand at least 3% a year to bring the unemployment rate down significantly.”

Given yet another set of disappointing economic numbers, it just reinforces the folly of Democrats’ desire to raise taxes now. When he signed the last full extension of tax rates, President Obama said that “tax rates for every American were poised to automatically increase on January 1st” and allowing that to happen “would have been a blow to our economy just as we’re climbing out of a devastating recession.” The president was right when he signed that extension in December 2010, and clearly, things haven’t improved since then.

So why are the president and Democrats now so adamant about raising taxes? In July, 51 Senate Democrats voted for a massive tax hikes. And The Wall Street Journal editors observed, “Mr. Obama is demanding tax increases, not tax cuts, and large increases at that.”

As Senate Republican Leader Mitch McConnell said after Democrats voted for their tax hike, “After nearly four years of spending and debt, millions of Americans are still struggling amidst the slowest recovery in modern times, and the economy is flat on its back. And they want to raise taxes. . . . [T]wo years ago, Democrats agreed that the higher taxes they’re now fighting for would hurt the economy. At a time when economic growth was 3.5 percent, 40 Democrats voted to keep rates where they were on the grounds that it was the best thing for jobs.”

With growth as low as 1.3% now, do Democrats still think it’s the time to raise taxes?


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