Andre Damon (WSWS) examines the economy:
Economic data released this week provides further evidence that economic growth in the US has virtually come to a halt. The Commerce Department reported Tuesday that consumer spending fell by 0.2 percent in June, the first monthly decline since September of 2009. Personal income increased a negligible 0.1 percent, the smallest gain since last November, according to the department. Wages and salaries remained unchanged.
These figures followed similarly disastrous data on manufacturing released Monday by the Institute of Supply Management. The institute reported that its US purchasing managers index (PMI) fell in July to its lowest level in two years, while new orders contracted for the first time since 2009.
The data on consumer spending and manufacturing is consistent with the figures released Friday by the Commerce Department on overall economic growth. That report showed second quarter growth of the US gross domestic product (GDP) slowing to a mere 1.3 percent on an annualized basis. The Commerce Department also revised downward its estimate of GDP growth in the first quarter from 1.9 percent to a negligible 0.4 percent.
The data on consumer spending helped fuel the sharpest sell-off of US stocks in a year on Tuesday. The Dow Jones Industrial Average fell 265 points (2.2 percent), dropping the index well below 12,000. The Standard & Poor’s 500 Index declined 32 points, or 2.6 percent. The Nasdaq index fell 75 points (2.8 percent).
And the jobs just aren't there and won't be there. So the reality is that the jobless 'recovery' was always a myth.
It's important to grasp that. Until we do, our attitude when we hear unemployment benefits have run out may be: Why can't they get a job!!!
Blaming them. When the proper question is: Why won't the government create jobs?
The government is where the blame goes.
This is C.I.'s "Iraq snapshot" for Wednesday: