The first quarter of the year wrapped up March 31, and the final information on how America’s economy performed was released this week.
Economists are calling it a “big disappointment.”
U.S. Gross Domestic Product, one of the best ways to gauge economic performance, only grew 0.2% from January 1 to March 31. Compared with 2.2% growth last quarter, and 5% growth the quarter before that, that’s a big fall.
A lack of confidence in our economy was reflected in American spending habits. Individual consumer spending slowed to 1.9% growth — compared with a pace of 4.8% at the end of 2014. And businesses invested less, decreasing their spending at a 3.4% rate .
Energy companies — a major source of American job creation and infrastructure — were hit the hardest, decreasing their spending by 23.1%!
And if American businesses aren’t able to expand, they aren’t able to invest in their employees, create more jobs, or continue to innovate.
The Obama administration has left American individuals overtaxed, and American businesses over-regulated. The first quarter should be a wake-up call to the White House : their current top-down attempt at managing the economy obviously isn’t working.
House Ways and Means Chairman Paul Ryan said, “this report is all the more reason we need to keep making real reforms that will unleash economic activity and create new jobs, like fixing our tax code.”
He’s right. House Republicans know that economic growth comes from the bottom up. This starts by reforming our tax code and cutting red tape — and House Republicans have passed multiple solutions already that do just that.
For our economy to grow, we must give American families and small business owners the room and resources they need. This starts with tax reform, cutting unnecessary regulations, and holding the Obama administration accountable.
And that’s exactly what we’re going to keep doing.