Collapse of U.S. Growth <br>Puts Business Tax Cut <br>At Center of the Election
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
GDP for the first quarter of 2016 came in at a paltry one-half of one-percent. That sorry showing follows growth of 1.4% and 2% in the previous two quarters. If such a thing is possible, the already anemic economy is actually getting worse. Even worse, the latest GDP numbers disclose a collapse in business investment, the real driver of the economy.
When businesses don’t spend and invest, they don’t hire and cannot offer better-paying jobs. Business investment and wages are two sides of the same mirror. If a company purchases five trucks rather than ten, there are five fewer trucking jobs. If employers don’t invest in more computers, there are fewer programming jobs. If businesses don’t purchase more jackhammers and cranes, fewer construction workers are hired.
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