The U.S. Dept. of Commerce on Wednesday announced that America’s economy shrank by a whopping 2.9 percent annual rate in the first quarter of 2014. That’s a far more precipitous decline than two previous estimates had predicted. The Commerce Department estimated last month that the economy had experienced shrinkage of 1 percent, and prior to that in April had actually estimated 0.1 percent growth. Wednesday’s revised number represents the largest negative revision in the history of the department, according to multiple reports.
Sen. Jeff Sessions (R-Ala.), in his capacity as the Ranking Member on the Senate Budget Committee, released a statement in response to the bad news, including a stinging indictment of the Obama Administration’s overall economic record.
Growth last year was 1.9% — less than half of the White House predicted in 2009. And in 2012, the White House predicted growth this year would be 4.0%. But with a first quarter GDP contraction of -2.9% (a dramatic downward revision from initial estimates of positive 0.1% growth), the economy would need to average nearly 5% growth for the remainder of this year to hit that target.
The human consequences of almost six straight years of weak GDP figures are devastating: 7 million people have exited the workforce since the President took office. One in six men in their prime working years aren’t working. Workforce participation for women is at its lowest level in 23 years.
The American economy is the victim of a tragic collision with reality. We are living out the truth that no amount of political rhetoric, professional spin, or expedient demagoguery can create a single job, produce a dime of prosperity, or boost opportunity for a single working person.
Sessions followed up by laying out a simple 7-step plan that he believes would get America’s economy back on the right track.
“Clearly, we need a new course: one that creates jobs without adding to the debt,” Sessions said.
Here’s what he has in mind:
- Produce more American energy
- Make the tax code more globally competitive
- Eliminate all costly and unneeded regulations
- Turn the welfare office into a job training center
- Enforce our trade laws so our own workers can produce goods here in the USA
- Apply immigration policies that serve the national interest
- Balance the federal budget to restore economic confidence
What do you think about the seven bullet points in Sen. Sessions’ plan to grow the economy? Are there any steps you would add or take away? Let us know in the comment section below or by tweeting @YHPolitics.
Follow Cliff on Twitter @Cliff_Sims
