Obamanomics Continue to Fail: Consumer Spending, Construction Spending Drop in August, Democrats’ Promised “Recovery Summer” Never Happened
Posted By Vicki McClure Davidson on September 1, 2010
Economy is still dismal, unemployment is still high... Americans continue to not spend during Pres. Obama's worsening economic recession
Pres. Obama’s socialist “spend and tax” economy continues to fail, despite the administration’s groundless promises that it would recover this summer.
Millions of Americans, suffering through record numbers of unemployment and/or under-employment and job losses in the private sector mounting across the country, continue to hurt financially and not spend their precious few dollars… putting food on the table and keeping the mortgage or rent paid, for millions of American families, is the ongoing struggle from California to Maine.
Construction spending is also down much more than was predicted by Team Obama. So much for the premature left-wing media’s hoopla over the Democrats’ pipe dream of a “recovery summer.”
Perhaps, now that Labor Day is just a few days off and summer’s nearly over, Team Obama will attempt to spin this worsening economic crisis — brought on by their clumsy meddling, gigantic bailouts, economic manipulations, hidden costs in ObamaCare scaring employers, and other greedy, statist contrivances — into a proclaimed, fervently promised “recovery autumn.”
And later, when the “recovery autumn” doesn’t pan out, a “recovery winter.”
And later — well, heck… Obama’s “recovery spring” — in the year 2013.
From the latest Gallup poll, U.S. Consumers Pulling Back on Spending in August:
PRINCETON, NJ — Americans’ self-reported spending in stores, restaurants, gas stations, and online averaged $61 per day during the week ending Aug. 29. So far, August and back-to-school 2010 spending trends appear no better than those of August 2009.
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At this point, consumer spending in August is running below that of June and July, falling back to roughly the $65-per-day average of August 2009. This is consistent with perceptions of a continued weakening of the U.S. economy and tepid back-to-school sales.
It is also consistent with recent downward trend in consumer confidence as reflected by Gallup’s Economic Confidence Index. Gallup’s index predicted the slight uptick in last week’s Reuters/University of Michigan consumer sentiment index, and suggests a similar upward nudge in Tuesday’s consumer confidence index report from the Conference Board. However, Gallup’s index already shows confidence continuing to decline late in August — falling below its average July levels.
A disappointing back-to-school sales season, declining consumer confidence, and a weak job market suggest that the perceived weakening of the U.S. economy is the reality on Main Street. Federal Reserve Chairman Ben Bernanke’s “I’ve got your back” speech on Friday may have made Wall Street feel better for a day or so. However, it will likely take concrete, measurable action — not just the Fed’s announcement of its good intentions to help if necessary — to build Americans’ consumer confidence, stimulate consumer spending, and help small businesses increase their revenues and cash flow.
Gallup chart: consumer daily spending comparison, August 2010
Construction spending was the worst it has been in a decade. It declined twice as much as Team Obama had forecast.
From Bloomberg, Construction Spending in U.S. Declined Twice as Much as Forecast in July:
Construction spending in July fell twice as much as forecast, led by a slump in homebuilding that will depress U.S. economic growth.
The 1 percent drop brought spending to $805.2 billion, the lowest level in a decade, after a revised 0.8 percent drop in June that wiped out a previously estimated gain, Commerce Department figures showed today in Washington. Spending on federal government projects fell by the most in a year.
Builders are facing a slump in demand following the end of a homebuyer tax credit, even with mortgage rates at a record low, while mounting foreclosures will add to the inventory and further restrain prices. Government construction spending is also likely to stay weak as stimulus-linked outlays wane and state budgets shrink.
Additional:
Michelle Malkin: Obama jobs death toll: private sector jobs, growth forecasts down
Frugal Café Blog Zone: Biden Declares America Is “Moving in Right Direction” As Home Sales Hit “Unexpected” Low & Stock Market Drops (video) and Ten-Day POTUS Vacation: The Obamas Have Arrived on Poshy Martha’s Vineyard for Another Family Vacation and Unemployment Bad, More Jobs Shed… More Backlash on Michelle Obama’s Lavish Vacation — Public Beach Closed for Her by Police, Ingraham’s Parody of FLOTUS Vacation Diary and Yes, She’s Our “Uptown Girl”… Michelle Obama’s Ridiculously Lavish Vacation in Spain (video) and “Fire Pelosi” Campaign & Signs Scaring Democrats… Their Propaganda Email This Week Tries to Paint Nancy As America’s Sweetheart or Something and CA Budget Woes: Arnold “The Governator” Schwarzenegger Wants to Issue IOUs Again for California’s Bills and Federal Deficit Grows Like a Pot-bellied Pig, Government Spending in July Hit $160.04 Billion and More Bleak “Hopenchange”… Record-Breaking: More Than 780,000 Families in Illinois Receiving Food Stamps and Obama & Reid, Two of a Kind: Responsible for Nevada’s Broken, Decimated Economy, Highest Rate of Home Foreclosures in Nation, Angle Slams Reid (video) and Bad News: Police Layoffs of Up to 30 Percent for East St. Louis… Blame It on Obama’s Terrible Economy and More Bad News for Dems: 75% of Americans Say Free Market Principles Better Than Government Manipulation & Interference… Obama’s Approval Index Drops to -19 and Rasmussen’s Prez Approval Index for Obama… Déjà Vu at Dismal Minus 17, Unemployment Improves Only Because Americans Have Lost Hope, Stopped Looking for Work and “Duh” Files: Obama’s Approval Drops Like a Metamorphic Rock in Arizona… Disapproval of POTUS Worsening on Economy, Illegal Immigration, Job Markets
Gateway Pundit: A Trillion Dollars & 19 Months Later… Obama Proposes Tax Cuts for Business and Obama’s Disastrous Jobs Record Makes George W. Bush Look Godlike and This War Is Lost… 8 Years of Iraq War Cost Less Than Obama-Pelosi Failed Stimulus and Jobless Claims Rise “Unexpectedly” to Highest Level in 9 Months and Migrants Massacred In Northern Mexico – Where’s the UN Human Rights Council? and Thanks Barack… Record 1 of 6 Americans Receive Government Aid and Bombshell… Colorada Dem Michael Bennet Admits: “We Have a $13 Trillion Debt & Nothing to Show For It” and GOP Leader Boehner Calls For Obama’s Economic Team to Resign and Joe Biden Admits: “Voter’s Anger & Frustration Understandable Given High Unemployment & Sluggish Economy” and Beautiful!… Dem’s First Ad Asks Voters to Choose Between Bush’s Pro-Business Policies or Current Ruin and It’s Time to Admit It: Obamanomics Are a Complete Disaster and US TAXPAYERS ARE FUNDING MOSQUE CONSTRUCTION and Democrats: Say, Let’s Exempt Rich People in Blue States From Tax Hike! and Recovery Slumber: Consumers Stop Consuming and Obama July Deficit of $167 Billion Tops Bush Deficit For Entire Year of 2007: and As Michelle Returns From Spanish Extravaganza Obama Cuts Food Stamps to Nation’s Poor and IT’S OFFICIAL: Barack Obama Is Worst Jobs President Since Great Depression
Diary of a Mad Conservative: Newsweek and Bill Maher: America the Ignorant and Stupid
Nice Deb: David Limbaugh Calls Obama, “The Most Destructive President In American History”, In Bestseller, “Crimes Against Liberty”
Say Anything: 95.5% Of Payroll Growth Is Census Hiring
Big Government: Government Created 10x More Jobs than Private Sector in May
Sister Toldjah: Bad news day for Democrats
Camp of the Saints: The Moral-Traitor-In-Chief
Flopping Aces: Will Republicans Have The Stones To Put Uncle Sam in the Unemployment Line? [Reader Post]
Blue Crab Boulevard: “Recovery Summer” Churns On
Bob McCarty, Big Government: One Battle Ends, Another Begins for Nail Salon Owner
Missouri Political News Service: WSJ Notes Another Stimulus Promise Broken; ABC: ‘Summer Of Recovery’ Simply ‘Hasn’t Materialized”
About the author
We need a ‘dream team’ for 2012.
I submit Mitt Romney for treasury secretary.
The mess we find ourselves in needs to be rectified ASAP.
The socialist in chief will wreck this country for decades if we don’t stop him.
The time is now to start advancing toward the goal of restoring the ‘Shining City on the Hill’.
the 2010 elections will be a major first step.
Obamas’ credibility is seriously on the decline.
The time to weaken the beast is November 2, 2010.
Cry Havoc, and loose the Dogs of War.