Productivity slowing — bad news for budgets

Arrow downJan. 17, 2013

By John Seiler

Both the U.S. and California budgets depend on continuing economic growth. Gov. Jerry Brown has cautioned that his ambitious spending plan could fall apart if growth slows.

This just in:

“Global productivity growth has slowed for the second year running as weakening demand and innovation take their toll in developed and emerging economies.

“Annual productivity data from the Conference Board, a New York-based business and research organisation, will add to fears that economic growth in many countries may not recover to the rates seen before the financial crisis.

“Output per worker grew by only 1.8 per cent last year — the slowest pace for a decade, with the exception of the 2008-9 recession — as global economic expansion cooled more dramatically than employment growth.

“Improvements in labour productivity practically stalled in many developed economies and slowed significantly in leading emerging ones such as China, India and Brazil.

“In the US, output per hour increased just 0.2 per cent, making it one of the three slowest years for the country’s productivity growth since the second world war. The UK fared worse, with output per hour dropping 1.3 per cent — the same amount as in Greece.”

Looks like the “fiscal cliff” (really, fiscal fraud) “recovery” bill passed by Congress and signed by President Obama on Jan. 1 isn’t working.

Looks like Gov. Jerry Brown’s Proposition 30 plan to tax California into prosperity isn’t working.

Looks like avoiding a double-dip recession with more Federal Reserve inflation and zero-percent interest rates isn’t working.

Looks like socialism still isn’t working.

3 comments

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  1. Hondo
    Hondo 17 January, 2013, 12:44

    Europe, amerika’s biggest market and customer, is in another certified recession. Obummer care penalizes prosperity at every level in this country, again, dragging the economy. And all those taxes passed in the last election along with prop 13 being jacked up, will stop any meaningful growth in the economy. At the most it will limp along at 1% or so. Not the 4 to 6% it needs to pay for the crush of spending coming down the pipes what with the boomers retiring in record numbers. Most likely we will see 0% growth and even less, if not another full-on downturn. The new attacks on prop 13 will lower property values and drop kick the housing recovery in the nuts.
    I hope I’m wrong for Teddys sake. But even he admits the libs now own the economy and can’t blame the tea party for any failures. It’s all in their lap.
    Hondo…

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  2. Dyspeptic
    Dyspeptic 17 January, 2013, 15:35

    “Looks like socialism still isn’t working.”

    It works just fine from the perspective of The Overlords. They get more power and wealth and then divide the spoils among themselves and we get equality of misery and lots of empty promises. Sounds fair to me.

    Reply this comment
  3. jimmydeeoc
    jimmydeeoc 17 January, 2013, 15:39

    The first two decades of the 21 Century will put a stake in the heart of two ancient bromides that were stupid to begin with and lasted only because of exogenous factors – not intrinsic merit——-

    Home prices only go up! (Check.)

    Democrats are better for the economy than Republicans! (Coming soon.)

    Reply this comment

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Jerry BrownJohn SeilerPresident Obamarecession

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