When Good News Is Bad News

Gross Domestic Product here in the U.S. grew by 3.2% in the first quarter of 2010.  Very respectable.

Unless you're trying to work your way out of the worst recession since The Big One.

Then it's worrisome indeed:

GDP growth drops to 3.2% in first quarter of 2010
By Ed Morrissey

In January, Barack Obama and Democrats insisted that the 5.7% annual growth rate in the fourth quarter of 2009 showed that their stimulus plan had set the American economy back on track for rapid growth and job creation. The administration needed a big number for 2010 to allay fears that unemployment would stagnate at the current high levels for the long term. Unfortunately, they didn’t get it, with the 3.2% annualized GDP rate for the first quarter of 2010 falling below analyst expectations.

The last time the US suffered this kind of recession and unemployment, in 1982, it took several quarters of annualized growth of between 7%-9% in order to generate sufficient numbers of jobs to seriously lower unemployment. The long-term trend of the American economy is growth between 2.5-3%, which makes the 2010Q1 result barely a blip above average. It indicates that the current job situation may well become the “new normal,” with high unemployment remaining in place for years to come. [link]

Now what, big guy?  Another trillion dollar stimulus?

It'll be interesting to watch the mainstream press spin the grossly high unemployment numbers come election season.  Or, as I suspect will be the case, how they'll flat-out ignore them.

Odd how attitudes shift depending on the party in power, no?