White House/Senate/Congress’s Declared Spending “Armistice” Encourages Business, Consumers

April 15th, 2013 | by Morris Beschloss | Comments

As the economic first quarter of 2013 has been relegated to the pages of history, the subsequent spring sunlight is shining a bit more brightly on the economy as a whole. Heading the nation’s comeback revenue and employment parade are all aspects of energy development. This is happening despite consistent blocking attempts, epitomized by opposing the XL oil pipeline, and Governor Andrew Cuomo banning hydraulic fracturing (fracking) in such a high state tax as New York. In addition, President Barack Obama is banning fracking on federal lands, which harbor two-thirds of potential shale availability in the U.S.

Additional new housing permits, as well as a pickup in commercial and industrial construction indicate a steady, but still unimpressive growth in a sector key to the nation’s overall revenue and employment growth. But with the horrendous costs imposed by the unveiling of “Obamacare” due to reach full implementation by year’s end, anticipated tax increases as well as restrictive regulations will offset employment increments in America’s potential jobs market. This is desperately needed to bring the current labor participation performance sector off its record multi-year bottom.

Despite this intransigent failure to allow job creation, by governmental fiat, the massive U.S. economy, generating a world-leading $15.6 trillion, is encouraged by a respite from the uncertainty of overwhelming “sequestration” as well as a chance to take full advantage of an economy that is rapidly being classified as a “repair, maintenance, and sustenance” description identity, as opposed to one driven by expansion and entrepreneurial creativity.

When projecting opportunities for growth in the months ahead, such previously comeback sectors as agriculture, armaments, military and commercial aircraft, automotive expansion, construction and industrial machinery production will hold their own, but provide little hope for meaningful expansion.

Exports, which had joined energy development as a surprise post-recession surge sector, will have difficulty maintaining the record near $2 trillion level, achieved in 2012. This is primarily due to the flattening growth in the developing world’s previously dynamic expansion entities, which have fallen prey to a worldwide lapse.

Although America’s independent businesses, the centrality of 80% of America’s employment will hold their own in revenue generation for the next six months, they expect to do this by productivity, which includes replacing workers with technology in the back office as well as the shop floor.

In summation, the 2013 economy looks increasingly like a 2% growth advancement, hardly a basis for economic encouragement.

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