Slow growth is bad for everyone. Including the government, which depends (sort of) on tax revenues to do its job. Now, as Kasia Klimasinska of Bloomberg reports:
The budget deficit in the U.S. this year will be wider than predicted four months ago as weaker-than-expected economic growth in the first half hurt tax revenue, the Congressional Budget Office said. The projected shortfall will be $506 billion in the 12 months ending Sept. 30, compared with an April prediction for $492 billion, the nonpartisan CBO said today in a report … The economy will expand 1.5 percent in the fourth quarter of 2014 from the same period last year, compared with 3.1 percent growth predicted in February, the CBO said. Unemployment this year will average 6.2 percent before declining to an average of 5.9 percent next year, it said.
This counts as a nuisance in Washington where, if the money doesn’t come in, you just go into deficit.
But out in the provinces, 1.5 percent growth translates into … backing up.
Half the country believes we are still in a recession. Which, for them, we are.