Posted by: arnegrim | April 28, 2011

Economy continues to struggle… lawmakers continue to dawdle…

“The economy slowed sharply in the first three months of the year as high gas prices cut into consumer spending, bad weather delayed construction projects and the federal government slashed defense spending by the most in six years.

The Commerce Department said Thursday that the economy grew at a 1.8 percent annual rate in the January-March quarter…

…An inflation gauge in the report showed consumer prices rose last quarter at the fastest pace in nearly three years, with most of the increase coming from higher fuel costs.

Rising gas prices are draining most of the extra money that Americans are receiving this year from a Social Security payroll tax cut…

And what is being done about it?  Congress continues to talk of raising taxes… and the White House talks of cutting subsidies for oil companies.

Neither move will help to cut gasoline costs (the opposite effect actually)… and both moves will take more money out of the pockets of ‘ordinary’ Americans and further depress consumer spending.


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