United States continues to be in growth recession

Are you buying the hype that we are out of the economic downturn? Do not get any ideas, suggests Investor’s Business Daily. Slow, inadequate growth is almost indiscernible from backsliding, which is a classic sign that a growth recession is still on.

The numbers about a growth recession

When economic growth is so low that it creates net unemployment, it is called a growth recession. Underachievement in job creation or very low growth is also Growth recession. A country’s gross domestic product is expanding at too slow of a rate with job contraction.

A few signs

Here are just a couple of the signs that a growth recession is here, writes Investor’s Business Daily:

• In May 2011, there were 38,000 private-sector jobs created according to ADP Payroll Services. That’s 100,000 short of the minimum goal economists had marked for economic growth.
• Employment consultant company Challenger, Gray & Christmas noted that 37,135 jobs were cut in May, a two percent increase from the previous month.
• In the first quarter of the year, there was a 4.2 percent decrease in U.S. housing costs.
• The Mortgage Bankers Association’s mortgage application index fell 4 percent in May’s final week.
• 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.

Terrible economy continues

Getting unemployment back to normal is something that may not happen considering the United States gross domestic product 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 recession with that debt on our shoulders.

Michael Pento is the Euro Pacific Capital senior economist who believes that economic health won’t return unless the U.S. changes things.

“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 U.S. has to change things. If not, the U.S. may be looking at a depression rather than a growth recession in the future.

Growth recession at teatime

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

Articles cited

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