Feature Story

July 30, 2010

Slowing growth shows need for renewed policies to boost jobs and incomes

From Economic Policy Institute:

The Department of Commerce reported today that gross domestic product (GDP) - the value of all final goods and services produced in the United States - rose at an annualized rate of 2.4% in the second quarter of 2010. This is a steep drop off from the 3.7% annualized growth rate in the previous quarter.

This economic deceleration is occurring even with the Recovery Act providing its last strong boost to the U.S. economy. By the last quarter of 2010, the Recovery Act will no longer provide a boost to growth. What will emerge to take up the slack of fading Recovery Act spending is a troubling open question about the economy going forward. It would be wise for policymakers to provide more fiscal support to the economy, and soon.

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