So much for the recovery promised by President Obama eh?
The economy got off to an even weaker start this year than first thought, the government reported Friday, as economic activity contracted amid a disappointing trade picture and continued caution on spending by businesses and consumers alike.The 0.7 percent decline in economic output in the first quarter of 2015 was a reversal of the initial 0.2 percent advance for the period reported last month by the Commerce Department.While statistical quirks and one-time factors like wintry weather in some parts of the country played a role, as did a work slowdown at West Coast ports, the lackluster report for January, February and March underscores the American economy’s seeming inability to generate much momentum.Source: U.S. Economy Contracted 0.7% in First Quarter – NYTimes.com
One thing I feel the need to write about and correct is this; Ed Morrissey over at the neoconservative blog, HotAir.com says the following:
Get ready to hear a lot about supposedly harsh winter weather in supposedly the warmest year on record, and port closings in a period where imports seemed to have no trouble coming on shore.
Allow me to share something with you; I recently applied for a got my sales tax ID. I am back in the business of selling 12 volt electronics, mainly for cars. One of the other things that I can get are 10 meter mobile amateur radios. Well, one of the brands that I can get are the Ranger line of 10 meter radios. Well, this is what I see, when I log on to one of my many supplier’s website; they’re all out of stock:
The problem is, it is not just this supplier; it is all of them and I am told the next time that Ranger is going to try to ship any, is in July. Now, this really does not bother me; because this stuff is not my main line of sales. I am more into the car stereo end of things. But, could you really imagine being heavily invested into the CB/10 meter end of things and have a huge customer base and then find out that you cannot get this stuff? Ouch.
So, Ed is wrong about the part about imports, there is a labor dispute going on. They are working without a contract and thus the slowdown. This all plays into the status of the economy. Also too, inflation and globalism all play a part into as well.
Others: Wall Street Journal, White House.gov Blog, Truth Revolt, Outside the Beltway and The Week (via Memeorandum)