GDP report fuels new fears of economic slowdown
White House: 'Great deal of anxiety' among Americans
- Duration 6:09
- Date Jul 27, 2012
White House: 'Great deal of anxiety' among Americans
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Fox News alert a bombshell on the ailing economy new fears of an economic slowdown following a report that shows our country.
Is in a -- to say the least welcome to America live everyone on -- Friday.
-- Megyn Kelly.
Your reaction from Washington this hour as a GDP report shows the economy slowed to just one and a half percent growth.
From April to June that is below where they had hoped this is a look at the second quarter of 2012.
Just looking up at the chart myself.
It's a look at the second quarter there week out that's us.
All the way over on our rights and you can see that growth is rather low and nowhere near where it was back and 2011.
Analysts say when the number is at or below 2% against one point five right now.
It is just not enough to lower the jobless rate you need more -- more people buying and producing.
All this is the White House says there is still a great deal of anxiety among Americans.
And they claim the numbers show they claim the numbers show that we are moving in the right direction.
Here's the white house Press Secretary Jay Carney moments ago.
Well I would say that.
On the issue of GDP what we have seen his.
The twelfth street.
Quarter of economic growth positive growth.
And that is a good thing.
As we say consistently this is not enough and this is this is growth is not fast enough this is job creation that is not substantial enough.
-- and that's why congress needs to act.
Al Harrington is the founder and managing partner for Harrington capital management he's with me now Kyle.
They had hoped it would be more it could have been worse and the White House is now pointing out that even though they wished the numbers were higher.
That at least we've had six consecutive.
Periods of growth and -- at the exact statement here.
I heard Jay Carney see it park but they said that we're growing.
Month to month and quarter to quarter unlike when President Obama first took office.
-- I mean if you call wanted to -- percent growth growth fine but let let let's just go back to a basic definition of of GDP OK it really is a snapshot.
And a measure of the economic health.
Of the US journey given period of time.
And 200 years ago the US represented 1% of total GDP growth in the world today it stands at 23% Megan.
And does double China.
Okay and we got there because of limited government intervention.
-- -- -- -- property rights less bureaucracy and lower regulation.
Now I don't think.
Doing my research on this current administration the majority of those things are things that they believe him.
So unless we can change the sentiment.
Coming out of Washington going into November.
I don't believe that we're gonna see any significant.
GDP growth going forward and in addition I think we're gonna continue to see.
Jobless the jobless rate the unemployment rate continue to be stagnant it.
Not go hire the administration is saying -- -- my numbers here they say look.
Today's report shows that the economy posted its twelfth straight quarter of positive growth.
Over the last three years the economy has expanded by six point 7% overall mean while the economy continues to move in the right direction.
Additional growth is needed to replace the jobs that were lost in the deep recession that began at the end of 2007.
So their point is that.
Even though it hasn't been that great right.
They got twelve for twelve in terms of growth they're going like this is instead of like this -- which is better than the situation we found ourselves in when they took over.
Well let me say this -- I think one of the things that you need to consider seriously is that this fed.
Has been incredibly accommodative.
With respect to continuing to push the economy.
Toward a growth direction I mean interest rates are at historical lows -- in an effort to stimulate.
The homeowner to go out maybe by another home or someone who doesn't own a home.
To go out and buy a new home as well as businesses to go out and put capital to work in an effort to expand.
But I think the key word here is volatility in anxiety and I think it continues.
Going into the November election.
And I think it's one of the most important elections that we're gonna see in our life time.
It's only one point 5% is because consumers aren't spending -- spending has slowed.
And they say that that accounts for 70% of economic activity the folks.
They're not buying the cars they're not buying much they're sitting at home holding their money why are they doing that kind.
Key key point in this whole discussion.
Megan for your viewers I -- 70%.
Of GDP happens to come down to the consumer spending.
And if you look last year one year prior -- August of last year it was the lowest consumer sentiment in three decades and I think that that sentiment continues.
People are nervous to put money to work because.
-- -- -- they have fear that they might not have a job or they already don't have a job.
And they're collecting unemployment and -- I'm very fixed budgets.
And so they're afraid to go out and buy that flat screen television -- afraid to go out and take that vacation and spend money on traveling costs whether it be via car.
And you're gasoline is we seen gasoline prices still very high.
They've come down a bit but I -- historically they're still very high so.
I think people are more interest in keeping money under their mattress to protect and preserve.
To get a better -- better view.
Into what's gonna happen it given the November election.
Just our viewers now we are officially.
Greater more what we have more in in debt that we -- -- income in the second quarter our -- our GDP grew one point.
Point six billion our debt -- 274.
So we are debt is now officially 101 point 6% overall the whole year of our GDP Kyle thank you thank you --