The Swamp: July 2008 Archives
The Swamp
Chicago Tribune
Posted July 31, 2008 5:21 PM
The Swamp

by Frank James

Maybe the economy will pick up during the rest of the year. Optimism is healthy, isn't it?

But the economy certainly had a poor first half in 2008, growing 1.9 percent in the second quarter, the Commerce Department said this morning.

And it actually contracted during the 2007 fourth quarter by 0.2 percent, based on the agency's revised data.

The only good news seemed to be that matters could have been worse, significantly worse. The economic stimulus checks pumped out by the U.S. Treasury earlier this year boosted second-quarter growth. But that was a temporary fix.

The other factor pushing economic growth was the relatively weak dollar which kept U.S. exports humming.

But there were other bad economic data today. The Labor Department reported that the number of U.S. workers filing unemployment claims last week was 448,000, a five-year high.

And here's one many if not most American workers can relate to: wages and salaries rose only 0.7 percent in the second quarter. Benefit costs rose less than that.

One might think such data would be difficult to put a positive spin on. Anyone thinking that would be underestimating the Bush White House.

President Bush said the following to a group of coal industry executives today:

"I want to remind you a few months ago there were predictions that the economy would shrink this quarter, not grow. But in fact, the opposite has happened. As a matter of fact, it's more than double the rate we saw in the first quarter; that's positive."

And this:

"[W]e saw the slowdown early." "And that's why we passed the stimulus package.

Continue reading "Bush positively spins weak economic data" »

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