Income Growth, Economic Growth Slow in 2013
Government Confirms Economy Grew Slowly at End of Year
(Washington, D.C.) – According to the Department of Commerce, personal income grew at a rate of 2.6 percent in 2013 – a significant drop from the prior year, when it increased by 4.3 percent. It is estimated that last year's "Fiscal Cliff Deal" – which increased taxes by more than $600 billion – was a significant reason that Americans took home less than they otherwise would have. The continued weakness of the U.S. economy overall is likely another cause.
Separately, the Bureau of Economic Analysis reports that the economy grew at an overall rate of 2.6 percent in the last 3 months of 2013. This is a significant drop from the previous quarter, when the economy grew by 4.1 percent. Analysts believe that growth in the first part of 2014 has been even slower.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"There's disturbing evidence that the U.S. economy is slowing down. That's bad news for everyone. Over the last five years, economists say it's been growing – although working American families feel like they're more hard-pressed than ever. Many cannot afford for things to get worse.
One of the priorities in Washington today must be economic growth. But it seems all we get is talk, and no real action. Too many of our government officials continue to push for more spending, more regulation, higher taxes, and higher deficits. We can't continue down this path. Government is stifling the private sector. Instead of devoting so much of his time to selling insurance, the President needs to ease the burden of government regulations, mandates and taxes, that's crushing small business and entrepreneurs. It's time to unleash them to start hiring again, and to grow wages. This will take more than speeches. It means working with Congress on a common-sense, bipartisan plan."