Economy Slows – GDP Growth Shrinks, Unemployment Rises


Who will President Obama blame for today’s gloomy economic news? The millionaires he’s so obsessed with? One thing he won’t do is take a good hard look at the man in the mirror and change his progressive ways. Sadly and predictably, the economy is slowing yet again.

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The Wall Street Journal reported that GDP growth has shrunk, while unemployment has gone up.

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The U.S. economy hit the brakes in the first three months of 2011 as higher prices, especially for gasoline and food, squeezed spending by Americans.

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Separately, the number of idled U.S. workers filing new claims for unemployment benefits unexpectedly jumped last week, the latest sign that the labor market remains weak.

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Gross domestic product, the value of all the goods and services produced, rose at an seasonally adjusted annual rate of 1.8% in the first quarter, the Commerce Department said Thursday in its first estimate of the economy’s benchmark indicator.

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The modest increase marked a significant slowdown from the economy’s pace in the fourth quarter, when GDP rose by 3.1%. The results were in line with economists’ forecasts.

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The data marked a setback for an economy still healing from a deep recession. High international oil prices have pushed gas costs beyond $4 a gallon in parts of the country. But the Federal Reserve and private-sector economists see the almost two-year-old recovery gaining momentum later in 2011. Fed Chairman Ben Bernanke Wednesday said the first-quarter slowdown would likely be temporary.

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Why do I find no comfort in the words of Ben Bernanke?

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Oh, and the value of the dollar continues to fall. Maybe that’s why.

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