Economic growth was revised down to a piddling 1.6 percent in the second quarter, the Commerce Department reported Friday. It's a significant drop from the 3.7 percent growth in the first quarter.Economists expect the third quarter to hardly grow much more, estimating 1.7 percent growth.
It looks like the Keynesian theory of infusing massive amounts of government cash into the economy has fizzled. And while many other factors also explain the lack of economic energy, the bottom line is that nearly everyone — from consumers to business owners to government decision-makers — faces tremendous unknowns.
Worries about maintaining jobs and salaries stymie consumers. Businesses are holding back money. Economists also say that likely changes to tax laws and new regulatory environments are having a chilling effect.
And that uncertainty continues to hobble our consumer-generated economy.
The news is dire and the message — we hope — is simple: We need clear-eyed action going forward. Kicking around political footballs when there is a chance the country could slip back into recession cannot be tolerated."
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