Why the Economy is Worse Than You Think

As of March 5, 2011, Obama has played 60 rounds of golf, which is at least 8 times more than President George W. Bush.

Martin Feldstein, chairman of the Council of Economic Advisers under President Ronald Reagan, is a professor at Harvard and a member of The Wall Street Journal‘s board of contributors.

In an op-ed he wrote for the Wall Street Journal, June 8, 2011, Feldstein explains why and how the economy is worse than we think. The reasons are:

  • GDP growth is declining, dropping to just 1.8% in the first quarter of 2011, from 3.1% in the final quarter of last year.
  • Two-thirds of the 1.8% GDP growth in the first quarter of this year went into business inventories rather than sales to consumers or other final buyers. This means that final sales growth was at an annual rate of just 0.6% and the actual quarterly increase was just 0.15%—dangerously close to no rise at all. A sustained expansion cannot be built on inventory investment. It takes final sales to induce businesses to hire and to invest.
  • The picture is even gloomier if we look in more detail. Estimates of monthly GDP indicate that the only growth in the first quarter of 2011 was from February to March. After a temporary rise in March, the economy began sliding again in April, with declines in real wages, in durable-goods orders and manufacturing production, in existing home sales, and in real per-capita disposable incomes.
  • The index of leading indicators fell in April, only the second decline since it began to rise in the spring of 2009.
  • The data for May are beginning to arrive and are even worse than April’s. They are marked by a collapse in payroll-employment gains; a higher unemployment rate; manufacturers’ reports of slower orders and production; weak chain-store sales; and a sharp drop in consumer confidence.

Feldstein concludes with this doleful prediction:

“The policies of the Obama administration have led to the weak condition of the American economy. Growth during the coming year will be subpar at best, leaving high or rising levels of unemployment and underemployment. Expect more bad news until someone enacts a plan to bring deficits under control without raising taxes.”

Read the rest of Feldstein’s article HERE.



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7 Comment authors
igorDavid StrangeDCGdanEowyn Recent comment authors
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We’re soooooooooooooo screwed it’s light years beyond ridiculous.

I hate to say it, but I really don’t think this country is salvageable through the ballot box anymore.

I tend to think the last chance for that came and went in November of 2008.

I hope I’m wrong.



David Strange, ’tis easier to criticize than create….easier to react than act.The measure of ones character is in correcting ones mistakes rather than blaming others. Hypocrisy or pretension if my Greek serves me,and hubris are not conducive to the search for truth. Misunderstanding someone who takes a perverse pleasure in being cryptic and practices the art of sarcasm (overmuch IMHO)and reacting honestly IF incorrectly but having the integrity to reevaluate one’s position after reflection…well, ,I daresay that the aforementioned discussion had the desired effect of correction/instruction.To take argument personally…or to practice ad hominem attacks is immature and something we should… Read more »


Good grief strange, can you make a more concise post for attacking Eowyn, Christianity, conservatives and accusing us of wanting to kill those that don’t agree with us? You are quite the master at Alinsky tactics here…personally attacking us yet ignoring the FACTS of the post re: our economy. Course that is typical, attack the messenger when you can’t attack the message.

Obama’s approval ratings remain strong? hahahaha….you must really be Jesse Lee!

David Strange
David Strange

DCG: Alinksy tactics? I’ve never read Alinksy in my life. I’m just pointing out the obvious. I hear more and more calls for violence by the right if the elections don’t work out for you. Go look at the facebook comment section on WND.COM— there are outright calls for murder/imprisonment of anyone who votes for Obama … The only reason I brought this up here is Dave mentioning “ballot box” might not be the solution — which is usually a tale tale sign of people on your side YEARNING for war …. Stop with your silly “Alinsky” bullcrap DCG …… Read more »


the moronic liberals in my hometown paper claim that obama has created 800,000 jobs. i wonder if liberals actually have the ability to count. obama has said that he had been to 57 states although there are only 50. numbers seem to be an arbitrary thing when used by the liberal.