New government data just released shows the pace of economic growth has slowed in the second quarter of this year. The Commerce Department reported the gross domestic product rose to just 2.4 percent down from the 3.7 percent growth in the first quarter. The anemic economic growth has placed the economy as a threat to the overall national security of the U.S. with its dwindling tax revenues and soaring national debt.
The Chairman of the Joint Chiefs of Staff has stated on numerous occasions that the national debt is a threat to the national security of this nation, unless action is taken will begin to undermine the security of this country.
Consumer spending has lagged and many are fearful of where the economy is heading. One only has to look at the the dismal news emanating from the various states regarding their state's budget's. Policy out of Washington has had a chilling effect on business and as reported in a previous email businesses are holding on to almost two trillion dollars in assets unwilling to spend fearful of what the future holds.
Right now Congress and the president are wrangling over letting the Bush tax cuts expire or keep some and let others expire. Either way a tax increase is coming and this will have a dramatic effect on the fragile economy.
Washington and the State's across the nation need to keep in mind that small businesses are reeling from policies enacted by both governmental entities. Small businesses account for almost 80% of all jobs in America and if you want to jump start the U.S. economy help small business. If we don't then the economy will just sputter along!
It will be interesting to see what July's unemployment numbers will be!
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