Government IS the economic problem. Liberals grant that weak consumer demand is causing the sluggish growth. Great. What does that tell us? According to the Law of Supply and Demand, the prices of goods and services are too high. OK, but ... ?
The total government burden (spending, regulations, & mandates) of all levels of government on the economy is roughly 50% of economic output. Thus, 1/2 of the price of EVERY good we buy or service we use is consumed by the government. In effect government is doubling the price of goods and services. If the price of everything is doubled by government intrusions then we can expect a sluggish economy. It must be that way.
A release from the Bureau of Economic Analysis today surprised analysts when the top-line number showed that the economy shrunk in the last quarter of 2013 by a slight 0.1%. While small, it was unexpected. This marks the first time the American economy has shrunk since the end of the 2008 recession.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the...
So 2% GDP growth is NOT the new norm. It is a way point on the way to Greece and then an economic calamity.