Return of the Summer of Wreckovery?

posted at 1:01 pm on April 28, 2011 by Jazz Shaw

A pair of new reports surfaced this week casting a dim light on the nation’s economic recovery, which even optimistic administration supporters have labeled as “fragile,” among other things. The first indicator comes from the nation’s economic growth, which was already borderline at roughly 3%. After today, three might start looking pretty good.

WASHINGTON (MarketWatch) — The U.S. economy slowed markedly in the first quarter and inflation accelerated, clear evidence of the double whammy on the economy from higher gasoline prices.

In its first estimate Thursday, the Commerce Department said gross domestic product rose at a 1.8% annual rate between January and March, slower than the 3.1% pace in the prior three months.

Economists polled by MarketWatch had expected a slightly weaker 1.7% growth rate.

The report cites a combination of factors including lethargic consumer spending, reflecting decreased confidence combined with declines in federal defense spending and cash strapped states tightening their belts as well. Disturbing enough news by itself, but it turned into a double whammy with the revised job numbers which came out on the same day.

New applications for U.S. unemployment benefits jumped last week to the highest level in three months, potentially a sign that recent improvement in hiring trends may have stalled.

The number of people who filed initial requests for jobless benefits climbed 25,000 to a seasonally adjusted 429,000 in the week ended April 23, the Labor Department reported Thursday. The last time claims were that high was in late January

Avoiding the use of the “u word” is a bit easier this month. The report shows that hiring is still continuing, though at a slower pace than would be needed to establish a robust recovery. One factor mentioned is that some of the discouraged workers may be starting to come back into the work force, even as more people find themselves filing new unemployment claims.

Either way, supporters of the President’s economic recovery plan (I know… I know… don’t ask) need to hope that this is simply a blip on the recovery radar. Numbers like these only add fuel to the fire as the Republican presidential hopefuls gear up for the summer campaign season. But, if nothing else, there should be more openings for vendors to sell cold drinks and hot dogs to people standing in long lines.


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Did the red head get a job?

red131 on April 28, 2011 at 1:03 PM

Did the red head get a job?

red131 on April 28, 2011 at 1:03 PM

TSA Regional Director of genital inspections.

BobMbx on April 28, 2011 at 1:06 PM

“Either way, supporters of the President’s economic recovery plan (I know… I know… don’t ask) need to hope that this is simply a blip on the recovery radar.”

Whistling past the grave yard…

Seven Percent Solution on April 28, 2011 at 1:10 PM

There is no recovery.

j_galt on April 28, 2011 at 1:11 PM

Did the red head get a job?

red131 on April 28, 2011 at 1:03 PM

She has no cash for gas thus her not being in the line at the moment. Or maybe too weak from hunger to stand in line.

Knucklehead on April 28, 2011 at 1:12 PM

Some 57 percent of registered voters said they disapproved of Obama’s economic management, while only 40 percent approved. That’s the lowest score of his presidency.

“These numbers spell political trouble,” said Lee Miringoff, the director of the Marist Institute for Public Opinion in New York, which conducted the survey. “To get re-elected with a 57 percent disapproval rating would be a very tall order.”

Meanwhile, public pessimism is growing: Fifty-seven percent of U.S. adults said they thought the worst was yet to come for the U.S economy, up sharply from 39 percent in January. And 71 percent said the nation was still in a recession, even though the slump …

J_Crater on April 28, 2011 at 1:12 PM

That time of the year again:

The Bush recession is over. The Obama recovery has begin.

Bleeds Blue on October 29, 2009 at 9:32 AM

WashJeff on April 28, 2011 at 1:14 PM

I am sure Obama is in the Oval Office at this moment frantically drafting an executive order permanently outlawing unemployment. And Michelle will begin an ad campaign with tips on how to stretch the folks food budgets, just let them eat more cake!

BadMojo on April 28, 2011 at 1:15 PM

After today, three might start looking pretty good.

Ah, lowered expectations. The theme of the Obama Regime.

Tommy_G on April 28, 2011 at 1:18 PM

But, if nothing else, there should be more openings for vendors to sell cold drinks and hot dogs to people standing in long lines.

Michelle Obama doesn’t want us eating hot dogs. So the vendors will be serving veggie dogs and tofu burgers.

Doughboy on April 28, 2011 at 1:21 PM

But I read an Associated Press report yesterday that the economy is recovering supurbly well.

Who to believe?

Dhuka on April 28, 2011 at 1:27 PM

The new unemployment claim numbers are potentially more significant than you might first realize – they would qualify as being genuinely unexpected.

ironman on April 28, 2011 at 1:27 PM

Green shoots. You heard it here first.

a capella on April 28, 2011 at 1:29 PM

There’s crap here about the booming recovery is dependent on our vibrant small and medium size businesses………….which are leaving in droves because the cost of doing business is so high.
There is no recovery.

ORconservative on April 28, 2011 at 1:34 PM

The M word……

……. it’s here to stay. At least, for as long as this fool is in the White House.

UltimateBob on April 28, 2011 at 1:36 PM

Cue the theme song to “Endless Bummer II”!

pilamaye on April 28, 2011 at 1:39 PM

Here’s a little experiment you can do: ask anyone that you run into if they think the economy is improving. I’ve yet to find anyone that said “yes”.

But then again, if the WH and their sycophants say it is, who are we to question it?

bofh on April 28, 2011 at 1:40 PM

The people Democrats pretend to care about are using all of their money to buy expensive gas and food thanks to the devaluation of the currency and idiotic ego-friendly overregulation.

forest on April 28, 2011 at 1:41 PM

All this talk of no recovery…I mean com’on….

McDonalds is hiring 50,000 people!!!

PatriotRider on April 28, 2011 at 1:41 PM

Stagflation. Malaise. Carter redux.

petefrt on April 28, 2011 at 1:43 PM

How do you reconcile this with the highest consumer confidence reported yesterday?

Sir Napsalot on April 28, 2011 at 1:44 PM

$3.50/gas is just starting to be felt. The next numbers will be worse as Gas has continued to go up. this isn’t rocket science people. The more gas costs the less economic activity we will see.

unseen on April 28, 2011 at 1:48 PM

How do you reconcile this with the highest consumer confidence reported yesterday?

Sir Napsalot on April 28, 2011 at 1:44 PM

I would say the CC # was an outliar.

unseen on April 28, 2011 at 1:49 PM

But I read an Associated Press report yesterday that the economy is recovering supurbly well.

Who to believe?

Dhuka on April 28, 2011 at 1:27 PM

I saw that too. AP has just gone off the deep end for Obama. That is the only thing I can think of.

The economy is clearly stalled.

I don’t think the housing thing has come close to working its way through.

And noone talks about commerical real estate. I remember someone saying that commercial reestate had a slower path to foreclosure than residential but that they had the same borrowing problems and people were less emotionally tied to business property and it was just easier to admit defeat and move on…

I’ve not seen much of that covered so maybe that was wrong?

petunia on April 28, 2011 at 2:03 PM

Leftist policies cannot logically or possibly produce, and it is not even their goal to produce, “economic recovery.” The goal is to redefine both our meaning of prosperity and our relationship to government. The goal is to acclimate Americans to a norm of lower expectations and greater dependency. Ultimately, it is to vanquish the notion of the American dream.

rrpjr on April 28, 2011 at 2:03 PM

hope that this is simply a blip on the recovery radar

How many BLIPS = 2nd dip?

GarandFan on April 28, 2011 at 2:03 PM

People are no longer buying the “official party line”.

The gas pump/store shelf sticky note campaign goes viral.

http://tinyurl.com/10-Rules-For-Liberty-Guerillas

YTZGal on April 28, 2011 at 2:16 PM

Surfing around I just saw a turn of phrase that I think should be quite useful in the messaging war with Obama.

regulatory jihad against deep-water drilling.

Obama has a regulatory jihad against all use of our national resources from coal to natural gas to oil.

It is a holy war. That is why he uses the shrine of gaia the EPA to wage this war.

Religion, you gotta love it’s usefulness.

petunia on April 28, 2011 at 2:19 PM

All this talk of no recovery…I mean com’on….

McDonalds is hiring 50,000 people!!!

PatriotRider on April 28, 2011 at 1:41 PM

That’s right! After all, what better way is there to use a PhD in Chemistry than to be able to figure out the optimal temperature of grease for the best french fries?

UltimateBob on April 28, 2011 at 2:36 PM

Has anyone seen any proposals as to the new value of the debt ceiling? Are there any numbers being floated?

Sebastian on April 28, 2011 at 2:40 PM

Here’s a great idea for the leftist trash in ruinning our economy. Let’s pull the rug out of a $4 billion investment in Alaska because some people 70 miles away might get poisoned by the CO2 released by an ice breaker. And cooties. Or something.

And for craps and giggles, tell the world that after spending billions on a plant, in a non union state, that our third world government can pull the rug out from under your feet.

Winning the Future.

MNHawk on April 28, 2011 at 2:52 PM

regulatory jihad against deep-water drilling.
……..
petunia on April 28, 2011 at 2:19 PM

It’s a jihad against ALL drilling. Now Dept of Interior is trying to shut down drilling in West Texas and SE New Mexico via the Endangered species act, with the Dune Sagebrush Lizard as the latest “victim.”

And they have shut down drilling in Alaska due to potential emissions from icebreakers impacting a town of 250 people 70 miles away from the drill site.

They want a dependancy state, including dependancy on foreign energy.

iurockhead on April 28, 2011 at 2:57 PM

Recovery? Not seeing it…

Hiring? Not enough to matter.

http://data.bls.gov/timeseries/LNS12300000

Employment as a % of the population, 2001-current (graph and data). Not seasonally adjusted so compare month to previous year same month data for a better comparison.

March, current 58.5%, lowest since 2001? 58.5%.
Feb, current 58.4%, lowest since 2001? 58.4%
Jan, current 58.4%, lowest since 2001? 58.4%
Dec, most recent 58.3%, lowest since 2001? 58.2% … woohoo, recovery!
Nov, most recent 58.2% (and lowest).
Oct, most recent 58.3% (and lowest).
Sep, most recent 58.5% (and lowest).
Aug, most recent 58.5% (and lowest).
Jul, most recent 58.4% (and lowest).

So of the past 9 months, 8 are at the lowest point in a decade, and one is .1% higher than the lowest point for employment as a percent of population.

That’s not an employment “recovery” to be proud of… lets hope it turns around and the hiring actually gets us off the bottom of the chart here.

bls.gov data so I don’t see any “conservative bias” likely… where was this recovery?

Or does the recovery come without employment ever going over 60% of population?

gekkobear on April 28, 2011 at 3:09 PM

1970′s Part 2.

We’re in really deep s**t right now and the only reason we don’t have a reported UE rate over 25% is the fed is flooding the market with fiat money. Sooner or later it’s all gonna collapse. Forget specific industries, the whole US Dollar is a giant bubble.

Nelsen on April 28, 2011 at 3:14 PM

The Federal Reserve is waging jihad on a sovereign US dollar.

Nelsen on April 28, 2011 at 3:16 PM

Has anyone seen any proposals as to the new value of the debt ceiling? Are there any numbers being floated?

Sebastian on April 28, 2011 at 2:40 PM

No, haven’t seen or heard anything about this. Trump has sucked all of the oxygen out of the news.

Mirimichi on April 28, 2011 at 3:24 PM

Mirimichi on April 28, 2011 at 3:24 PM
There are days when I think Trump is purposely helping the Ds.

red131 on April 28, 2011 at 3:41 PM

In its first estimate Thursday, the Commerce Department said gross domestic product rose at a 1.8% annual rate between January and March

If you take off the increase in borrowed money the federal government is spending, and if you adjust the current GPA “growth” figures to ones based on the previous inflation standard – which included food and fuel – and you take away population growth by looking at the per capita GDP, then this “recovery” is running somewhere around a NEGATIVE three percent “growth” rate.

(And that’s not very good.)

logis on April 28, 2011 at 5:06 PM

Leftist policies cannot logically or possibly produce, and it is not even their goal to produce, “economic recovery.” The goal is to redefine both our meaning of prosperity and our relationship to government. The goal is to acclimate Americans to a norm of lower expectations and greater dependency. Ultimately, it is to vanquish the notion of the American dream.

rrpjr on April 28, 2011 at 2:03 PM

True, but I’m seeing the Leftists as being more opportunists and “nudgers” as Beck pointed out. Obviously there’s a heck of a lot more going on than just Marxism at work.

Dr. ZhivBlago on April 28, 2011 at 7:19 PM

See the article about high gas prices hurting Walmart.

BruceB on April 28, 2011 at 7:28 PM

Instapundit had a good email from a guy in Pennsylvania who has been talking to women in grocery store check out lines and people there are freaking out over gas and food prices. That might explain why Trump was getting so much air time with his calls for he birth certificate – anything to avoid talking about what people’s actual concerns with any degree of truth.

The emailer said, “Women are scared and FIVE billion campaign dollars buys you nothing if women are terrified about feeding their families.”

It’s over for Obama.

piglet on April 28, 2011 at 8:29 PM