Why the US economy is slowing

July 27, 2012

The US GDP report for the second quarter of 2012 is out today. It says the US economy is slowing.  It’s not for lack of business investment. This chart shows that business investment – or “non residential investment” – is way up.

Now look at the other line. Government spending is way down. For economist Paul Krugman, it’s this premature austerity that’s choking the US economy.

Posted in: Infographic of the day | Leave a Comment

US growth slows

July 27, 2012

The US economy grew at a rate of 1.5 per cent in the second quarter of 2012 as consumption growth stuttered and government spending continued to decline. The figure confirms the loss of momentum in the world’s largest economy since the spring. It’s not enough to bring down high unemployment.

 

Posted in: News | Leave a Comment

The Coalition’s austerity plan is stalling

July 26, 2012

Economists such as Nobel prize winner Paul Krugman say you must spend your way out of  a recession.

But the coalition have made swingeing cuts to protect the UK’s triple-A credit rating. Unfortunately, the Euro debt crisis has made mincemeat of their efforts.

GDP is down again, as this chart shows. The UK is now in its longest post-war recession. The OECD said the UK must stick with austerity, but it isn’t working now, so when will it start working?

Posted in: Infographic by Furthr, Infographic of the day | Leave a Comment