Economy Slows; No Recovery

Thu, 23 Dec 2010 12:47:55 +0000

eowyn2

I awoke early this morning to the big three TV networks positively giddy with ill-concealed partisan glee about Obama’s purported “legislative triumphs,” putting his signature to the START treaty and the repeal of the military’s Don’t Ask Don’t Tell policy.

True to their self-inflicted slavish nature, the big MSM are not reporting on just-released government data indicating the U.S. economy has slowed down.

There is no recovery.

In an article for the Reno Gazette-Journal on Dec 22, 2010,Financial status barely budges for Nevadans in 3Q of 2010,” Kara Lapoint reports that the latest U.S. Bureau of Economic Analysis of state personal income data paints a bleak picture of America’s economy:

Nationwide, the report estimates state personal income growth slowed to an average 0.7% in the third quarter of the year, down from 1.4% in the second quarter.

The slowdown stretched across the U.S., with 41 states demonstrating decelerating growth and three states remaining unchanged. Just six states showed accelerating personal income growth in the third quarter: Hawaii, Kansas, Minnesota, Missouri, South Dakota and Utah.

Nationally, all three major sources of personal income grew more slowly in the third quarter than the second.

Growth of the net earnings of workers slowed on average to 0.8%, from 1.5% in the second quarter. Property income fell on average 0.4%, after rising 0.4% the previous quarter. And the growth of transfer receipts (such as social security benefits received by retirees and benefits received by the unemployed) slowed to 1.3% in the third quarter from 1.8% in the second….

State and local government earnings fell in all but eight states, with the largest declines in government earnings seen in New Jersey and Washington.

The report states the slowdown in earnings growth reflects the net effect of declines in some industries, such as construction, real estate, government, and finance.

Construction earnings declined in most states in the third quarter, with the largest effects on personal income growth in Nevada (-0.22% points) and Hawaii (-0.19% points). Real estate earnings in every state also fell, continuing the downward trend of the last five years.

Only in faming and mining were earnings growth relatively strong nationally in the third quarter. Mining earnings (including earnings in oil and gas) made a significant contribution to personal income growth in Wyoming, Texas, and West Virginia.

~Eowyn

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