Spring GDP Figures Less Than Stellar

The nation’s economy grew at a worse than expected 1.3% during the second quarter of the current fiscal year, according to data released by the U.S. Commerce Department on Friday.

Economists had originally predicted a growth rate of nearly 2%. The report also scaled back first quarter gains to a measly 0.4%. White House Council of Economic Advisors Chairman Austan Goolsbee made the following statement in response to the latest numbers:

“We are at a fragile moment in the world economy and cannot afford to do anything to undermine our recovery at a moment such as this.  The unemployment rate is unacceptably high and faster growth is needed to replace the jobs lost in the downturn. This report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut and unemployment insurance, pass the pending free trade agreements with re-employment assistance for displaced workers, and create an infrastructure bank to help put Americans back to work.  It also underscores the need to end the uncertainty surrounding the risk of default and put in place a balanced approach to deficit reduction that phases in budget cuts, instills confidence, and allows us to live within our means without shortchanging future growth.”

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