2011 Economic Growth Nearly Half That Of 2010

While stumping for reelection, the President likes to hype that fact that the economy has been improving under his stewardship. Unfortunately, this morning's data on economic growth throws a lot of ice cold water on his personal and politically-driven viewpoint that he has somehow turned the economy around.

For the 4th quarter of 2011, the Gross Domestic Product of the United States only grew by 2.8% with the final, annualized growth rate for 2011 calculated to be 1.7%. That's nearly half the meager growth we saw in 2010 where the annualized GDP growth rate was only 3%. And, even that 3% growth in 2010 was horrible when you consider the fact that you need at least 2.5% growth in GDP to account for both population growth and inflation.

In effect, the economy actually contracted last year when you assume the 2.5% benchmark as minimum growth standard. And, I wouldn't count on 2012 being any better. That's because the consumer will continue to be hurt by higher prices for food, energy, clothing, health care, and eduction. All this at a time when wage increases are minimal, at best. And, if the consumer can't drive the economy, that 70% of our normal economic growth that will be marginalized.