U.S. continues to stay in growth recession

Think it is the time to commemorate economic recovery? Do not get any ideas, suggests Investor’s Business Daily. Employment is still hard to find, and the Gross Domestic Product is slow, which signifies the United States is still mired in a growth recession.

The facts about a growth recession

When economic growth is so low that it creates net unemployment, it is called a growth recession. Also considered a Growth recession is when job creation potential is very low for growth. Underachievement is also involved. A country’s gross domestic product is expanding at too slow of a rate with job contraction.

Facts in a tailspin

Here are just a couple of the signs that a growth recession is here, writes Investor’s Business Daily:

• ADP Payroll Services found that 38,000 private-sector jobs were created in May 2011. That’s 100,000 short of the minimum goal economists had marked for economic growth.
• Challenger, Gray & Christmas showed that there were 37,135 jobs cut in May. From April, that’s a two percent increase.
• In the first quarter of the year, there was a 4.2 percent decrease in United States housing prices.
• There was a 4 percent decrease in the Mortgage Bankers Association’s mortgage application index. This occurred in just one week at the end of May.
• The Institute for Supply Management’s factory activity index – an indicator of U.S. manufacturing health – dropped from 60.4 in April to 53.5 in May, the lowest score on the index since September 2009.

Back into economic downturn

Getting joblessness back to normal is something that may not occur considering the U.S. GDP growth. It was only at 2.7 percent in May. The only way for the U.S. government to keep away from the double-dip economic downturn is to match the growth with the borrowing, which is at $1.5 trillion in 2011.

The United States needs to change if it is going to get back to economic health, claims Michael Pento. Pento is a senior economist at Euro Pacific Capital.

“Genuine government stimulus comes from low taxes, stable prices, reduced regulation and low debt,” said Pento. “Our economic policymakers have scrupulously avoided such remedies.”

Summer 2011 will smell of economic déjà vu , states The Indypendent. Spending cuts and tax increases are apparent in almost every city and state. The Federal Reserve is backpedaling at the moment. The United States may soon end up in a depression instead of a growth recession if things do not turn around.

This video will explain it

http://www.youtube.com/watch?v=lIGJy41ekEU

Citations

Wikipedia

en.wikipedia.org/wiki/Growth_recession

The Indypendent

indypendent.org/2011/06/02/the-coming-double-dip-recession/

Investor’s Business Daily

investors.com/NewsAndAnalysis/Article/573972/201106011847/President-Plays-Economy-Lists.htm?src=HPLNews