America’s economic growth during the second quarter 0f 2021 failed to live up to expectations.
According to Fox Business, the disappointing news comes via a newly released report from the U.S. Commerce Department.
Falling short of expectations
The Commerce report shows that the United States’ gross domestic product (GDP), or America’s total output of goods and services, grew at a 6.5% annual pace in the second quarter of 2021. According to Fox Business, analysts “were expecting 8.5% growth” during Q2.
The fact that the country fell short may seem like a minor detail at first glance, but some say the situation is far more dire.
Indeed, coming out of a pandemic that shut down local and state economies across the nation — and around the world — one would think growth would be through the roof. Some economists even thought the U.S. might see as high as a 10% growth in GDP this quarter.
But that’s far from the case.
Now, the big question is: Why are we falling so short of expectations?
Not enough bang for your buck
As is always the case, there are a number of factors contributing to less-than-expected second-quarter growth. Among them, according to Fox Business, are supply-chain issues resulting from both the shut down of factories amid COVID-19 and a lack of labor as the country begins recovering from the pandemic.
Extended unemployment benefits handed out by the Biden administration certainly aren’t helping on the latter point.
Another factor, according to reports, is a recent rise in inflation we are seeing, which is at a 13-year high. But according to Capital Economics’ chief U.S. economist Paul Ashworth, it may be that progressive stimulus policies enacted amid the coronavirus pandemic are to blame for that, too.
Ashworth told Fox Business that the latest numbers provide “more evidence that stimulus provided surprisingly little bang for its buck, with the economy quickly pushing against unexpected supply constraints instead, which have driven inflation higher.”
As usual, it seems that rather than help struggling Americans, Democrats and their COVID-era policies are making matters worse. One can only hope the situation changes — and drastically — sooner than later.