The Single Most Important Thing About the US Economy Sure Looks Broken

By James Pethokoukis – Re-Blogged From the American Enterprise Institute

US productivity in the second quarter grew at the fastest pace since the end of 2013, according to revised government figures. This is good. But if you pull back the camera, longer-term productivity growth remains terribly worrisome. IHS Global Insight:

This update does not change the underlying story. Productivity growth remains low. The slowdown started about 10 years ago. The Great Recession muddied the data, making it difficult to tell whether the slowdown was a byproduct of the business cycle or something fundamental. In recent years, it has become clear that something was fundamentally off.

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US Economic Headwind

cropped-bob-shapiro.jpg   By Bob Shapiro

Economic numbers released today show the US Economy contracting. But some of these numbers understate the damage.

One of the most important statistic is Unemployment. Government figures show that Initial Claims for Unemployment, and Continuing Claims, both were up – to 320,000 and 2,421,000 respectively. While single week changes certainly can’t demonstrate a trend, there has been a significant increase from just a couple of months ago.

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