STATEMENT: Hersh: Disappointing GDP Growth is “Tip of the Iceberg”
Washington, DC – Today, Adam Hersh, Economist at the Center for American Progress, had the following reaction to the announcement of the first quarter GDP numbers:
"Today’s GDP report shows that government fiscal contractions are weighing on economic recovery. Growth in the U.S. economy slowed to 1.8 percent at the beginning of 2011 as a result of cutbacks to public services and investments at all levels of government.
The disappointing growth number is just the tip of the iceberg, though, and underlying data illustrate that fundamental imbalances remain in the U.S. economy. The middle class is being squeezed while the wealthy are capturing a disproportionate share of the economic gains, and financial profits are soaring. Household consumption per person still remains 1.4 percent below its pre-recession level.
This report comes at a time when House Republicans just passed a budget plan that will further steal wind from the sails of economic growth and job creation by draining investments from education, infrastructure, and science and research. It also burdens the middle class with tax hikes and higher health care costs to pay for tax cuts for the wealthy.
To get the U.S. economy back on solid ground we need policymakers to get their priorities straight. Forging a competitive, balanced economy starts with putting the middle class back at the foundation of economic growth."
To speak to Hersh about the monthly jobs report, contact Megan Smith at 202-741-6346 or firstname.lastname@example.org.