Over at the Wall Street Journal, the editors finds Americans “underwhelmed by the economic recovery“. Growth, at 2.4%, is just not where it normally is this soon after a recession:
A robust recovery would be building momentum, especially with historically easy monetary policy continuing. Instead this one is plodding along at a rate that won’t create enough new jobs to sharply reduce the 9.5% unemployment rate. The Obama Administration, in its Keynesian confusion, is simultaneously saying the economy is so weak it needs more spending “stimulus” but also strong enough to absorb a huge tax increase.
The message of 2.4% second quarter growth is closer to the opposite: The epic government stimulus has failed to produce the robust expansion the White House promised, and the prospect of higher taxes and more regulation is inhibiting the private animal spirits needed for growth to accelerate. Americans may have to wait for November for Washington to get that message.
If anything, the “stimulus” has slowed down — or delayed — the traditional pattern of recovery. Instead of looking to policies that failed as they seek to address this problem, White House officials should consider just why private employers aren’t hiring new employees and expanding their operations.
UPDATE: Via Jennifer Rubin:
The Obama economy isn’t getting better anytime soon: “The U.S. economic recovery will remain slow deep into next year, held back by shoppers reluctant to spend and employers hesitant to hire, according to an Associated Press survey of leading economists. The latest quarterly AP Economy Survey shows economists have turned gloomier in the past three months. They foresee weaker growth and higher unemployment than they did before.”