Thursday, May 5, 2011
Job market collapsing amid gov't spending slowdown
We saw very quickly what happened when government spending fell in the first quarter: economic growth collapsed down to a paltry, 1.8% from the 3.1% growth rate seen in Q4 2010.
Other economic indicators are now starting to show the effects of that spending reduction. Weekly unemployment claims have suddenly surged to their highest level since last August.
Jobless claims are surging!
And the ISM Non-Manufacturing Index plunged at the fastest rate since 2008!
And tomorrow's jobs report could be horrible!
Yet Congress and the president now want to cut spending further!
This raises the likelihood that the economy will go back into recession.