(NNPA)—During 2013, the U.S. economy experienced a reasonable level of growth. The 3.4 percent growth rate in the second half of 2013 represented a solid growth rate, but not enough to trickle down to those who live at the periphery of the economy. Those with low or stagnant wages might find that their lives have not improved by 3.4 percent. Indeed, the gains from gross domestic product growth may mostly be captured by the wealthy.
The first quarter of 2014 was an amazing disappointment. Instead of the modest growth of 3.4 percent from the second half of 2013, the economy grew by just one tenth of one percent. This is the one of the slowest growth rate in the five years of so-called economic recovery. Based on these data, the economy grew more than 300 times slower than it did in the last half of 2013. Some say we are growing at a snail’s pace, but even the most sluggish snail can do better than this.
Can we blame this stagnant economy on the harsh winter we have experienced? Between snow, hail, sleet and rain, housing starts have slowed. People who might hit the malls are staying home. People aren’t buying cars at expected rates. Since consumer spending drives about three-quarters of our nation’s economic growth, postponed spending dampens growth. But consumer spending has not slowed as much as GDP has. Spending on health care (thanks to Obamacare) and on other services suggests that consumers have had mixed engagement as spenders.