The Numbers Don’t Lie: The U.S. Economy Is In Trouble
ByDesmond Lachman
Published22 hours ago
John F. Kennedy famously said that victory has one hundred fathers but defeat is an orphan. Something similar might be said of Washington and the economy. While everyone would like to claim credit for economic success, nobody wants to assume responsibility for our current economic mess.
This week’s economic data leave little doubt that we are in an economic mess. It now turns out that following rapid economic growth last year, the economy is slowing abruptly. In the first quarter of this year output actually declined by 1.5 percent, while Goldman Sachs is now anticipating economic growth of only 2 ½ percent in the second quarter. Meanwhile, inflation continues to rage at a forty-year high, mortgage interest rates have increased at the fastest rate since 1994, and the stock market has declined by around 20 percent since the start of the year.
According to both the Biden Administration and the Federal Reserve, today’s inflation and now today’s slowing economy has nothing to do with economic policy. Rather, they claim that it has everything to do with the Covid-19 pandemic and with Russia’s invasion of Ukraine.
https://www.19fortyfive.com/2022/05/the-numbers-dont-lie-the-u-s-economy-is-in-trouble/
