Let's just call it the Pelosi/Reid slowdown -- after all, the Rush economic policies enacted by a GOP Congress have resulted in a steadily growing economy during his term (excluding the immediate aftermath of 9/11). Now that the Democrats have taken charge of both the House and Senate, the economy has slowed and appears to be heading for a recession.

The government cut in half its estimate of economic growth in the first quarter, reporting the slowest rate of expansion since the end of 2002.

Before todayÂ’s numbers were released by the Commerce Department, it was clear the economy was downshifting from the rapid 5.6 percent expansion of the first quarter last year. But the new data reinforced how significant the slowdown has been.

Growth advanced just 0.6 percent, compared with an initial estimate of 1.3 percent. IThe chief reasons for the revisions were adjustments to the estimates of imports and business inventories. Imports, which subtract from the gross domestic product, were stronger than the government first thought. At the same time, businesses cut production and accumulated smaller inventory stockpiles.

Despite the adjustments to the growth figures, inflation in the first quarter was essentially unrevised. Prices excluding food and energy, a measure preferred by the Federal Reserve, advanced by 2.2 percent in the first quarter, still above what the central bank has said it considers acceptable.

While there is still optimism among economists, I'm sure that continued bad-talking of the American economy can produce a recession in no time --and will certainly do so if the policies proposed by the current crop of Democrats running for the White House get adopted.

Posted by: Greg at 11:55 PM | No Comments | Add Comment
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