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Recommend Annie Lowrey: The Coming Double Dip -- How DC Manufactures Recession (Email)

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Published on Tuesday, August 2, 2011 by Slate

http://www.slate.com/id/2300560/

The debt-ceiling compromise will do nothing to prevent the economy from tumbling into a second recession.

by Annie Lowrey

About 14 million Americans are out of workWhat does the last-minute deal to raise the debt ceiling do to aid the flagging, faltering economy? Nothing.

About 14 million Americans are out of work. (Slate) The economy is in appalling shape. Last week, the Commerce Department's latest estimate of economic growth left many economists agog. In the second quarter, the economy grew at an annual rate of 1.3 percent. In the first, it grew at an annual rate of just 0.4 percent, a figure revised down sharply from previous estimates. Based on the first six months of 2011, the economy is growing less than 1 percent per year, about one-third of the speed we would expect during a normal expansion. In short, the recovery has completely stalled and the economy is perilously close to double dipping back into recession.


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