Economists: the U.S. remains in a growth recession

Think it is the time to commemorate economic recovery? Don’t get cocky, suggests Investor’s Business Daily. Slow, insufficient growth is almost the same as backsliding, which is a common indicator that a growth recession is still on.

Concerning a growth recession

When economic growth is so low that it creates net joblessness, it is called a growth recession. Underachievement in job creation or very low growth is also Growth recession. Job contraction typically means that a country’s real GDP is expanding, but too slowly.

Facts in a tailspin

There are several growth recession signs, states Investor’s Business Daily. Here are a few:

• ADP Payroll Services found that 38,000 private-sector jobs were created in May 2011. The minimum goal economists hoped for was 100,000 jobs more than that.
• There was a two percent increase from April to May in the number of jobs cut since 37,135 jobs were cut, according to Challenger, Gray and Christmas.
• U.S. housing prices fell 4.2 percent in the first quarter.
• There was a 4 percent decrease in the Mortgage Bankers Association’s mortgage application index. This occurred in just one week at the end of May.
• The Institute for Supply Management’s factory activity index – an indicator of United States manufacturing health – dropped from 60.4 in April to 53.5 in May, the lowest score on the index since September 2009.

Back into recession

Getting joblessness back to normal is something that may not happen considering the U.S. GDP growth. It was only at 2.7 percent in May. 2011’s borrowing by the U.S. government has hit $1.5 trillion already. It may never be possible to keep away from the double-dip tough economy with that debt on our shoulders.

The United States needs to change if it is going to get back to economic health, claims Michael Pento. Pento is a senior economist at Euro Pacific Capital.

“Genuine government stimulus comes from low taxes, stable prices, reduced regulation and low debt,” said Pento. “Our economic policymakers have scrupulously avoided such remedies.”

Summer 2011 will smell of economic déjà vu , says The Indypendent. Federal spending is going down while spending cuts and tax increases are appearing in cities and states while the Federal Reserve is backpedaling. The United States may soon end up in a depression rather than a growth recession if things don’t turn around.

Checking out the growth recession

http://www.youtube.com/watch?v=lIGJy41ekEU

Citations

Wikipedia

en.wikipedia.org/wiki/Growth_recession

The Indypendent

indypendent.org/2011/06/02/the-coming-double-dip-recession/

Investor’s Business Daily

investors.com/NewsAndAnalysis/Article/573972/201106011847/President-Plays-Economy-Lists.htm?src=HPLNews