“Recovery” Ends as Economy Shrinks
"Recovery" Ends as Economy Shrinks
Time for Washington to Encourage Economic Growth
(Washington, D.C.) – According to data released today by the Department of Commerce, the U.S. economy stopped growing in the first 3 months of 2014, and instead shrank by 1 percent in the first quarter of this year. This brings to an end a string of months of weak economic growth, during which time millions of Americans became dependent on food stamp assistance, household income fell by 4 percent, and long-term unemployment reached a crisis level. Instead of a very weak expansion, the overall size of the U.S. economy has declined. While some blame the economic contraction on this year's harsh winter weather, if this trend continues, the country will officially enter another recession, and employment would be likely to shrink as American companies adapted to reduced demand.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"Since the recession began, the U.S. population has grown by 14.5 million, while the total number of jobs has fallen. Household incomes have fallen – even while the White House bragged about a growing economy. Student loan debt is exploding. Government debt continues to grow. New business startups are falling. And now the economy has officially contracted, according to the U.S. government.
This is not a healthy economy; there are fundamental problems that must be addressed. Instead, too many in Washington are engaged in political games, and the White House continues to pretend working Americans are doing fine. This has to change. We need a new approach – one that encourages growth and certainty, and which reduces the size of government reach, eases the tax burden, reins in unnecessary regulations, and allows entrepreneurs and small businesses to start and grow the economy – free from excess government interference. The president simply hasn't led on this, and it's time he starts."