Economic Slump Continues: Retail Sales Down Again

“Every day brings more disappointing news for the middle-class Americans who are struggling in the Obama economy. With millions of Americans out of work and retail sales dropping for the third straight month in June, it’s clear the only people who are ‘doing fine’ are President Obama’s allies and donors. Mitt Romney will deliver a new direction for the country that won’t put the interests of his political allies above the interests of middle-class families.” –Amanda Henneberg, Romney Campaign Spokesperson

The U.S. Economy “Appeared Dimmer” For Middle-Class Americans After Retail Sales Unexpectedly Declined In June:

“Outlook For The U.S. Economy Appeared Dimmer” After Retail Sales Declined For A Third Straight Month. “The outlook for the U.S. economy appeared dimmer Monday after a report that Americans spent less at retail businesses for a third straight month in June. The report led some economists to downgrade their estimates for economic growth in the April-June quarter. Many now think the economy grew even less than in the first quarter of the year, when it expanded at a sluggish 1.9 percent annual rate.” (Martin Crutsinger, “US Economy Appears Weaker As Retail Sales Slump,” The Associated Press, 7/16/12)

“Spending In June Fell In Nearly Every Major Category — From Autos, Furniture And Appliances To Building, Garden Supplies And Department Stores.” (Martin Crutsinger, “US Economy Appears Weaker As Retail Sales Slump,” The Associated Press, 7/16/12)

“Retail Sales Slid 0.5 Percent From May To June” – Concluding The First Three-Month Decline In Retail Sales Since The Fall Of 2008.“Overall, retail sales slid 0.5 percent from May to June, the Commerce Department said. Retail sales hadn't fallen for three straight months since the fall of 2008, at the height of the financial crisis.” (Martin Crutsinger, “US Economy Appears Weaker As Retail Sales Slump,” The Associated Press, 7/16/12)

• The Decline In Sales Was Unexpected After Many Economists Had Predicted Sales To Grow In June. “Overall retail sales in June fell 0.5% in the month, according to a Commerce Department report. The decline came as many were expecting growth, with economists surveyed by Briefing.com expecting growth of 0.2%.” (Emily Jane Fox, “Gasoline Prices Drag Down Retail Sales,” CNN Money, 7/16/12)

The Retail Sales Decline Is “A Sign Limited Employment Gains Are Taking A Toll On The Biggest Part Of The Economy.” “Retail sales in the U.S. unexpectedly declined for a third straight month in June, a sign limited employment gains are taking a toll on the biggest part of the economy. The 0.5 percent drop followed a 0.2 percent decrease in May, Commerce Department figures showed today in Washington. The decline was worse than the most-pessimistic forecast in a Bloomberg News survey in which the median projection called for a 0.2 percent rise. The June decrease was broad-based, including car dealers, department stores and gasoline stations.” (Alex Kowalski, “Retail Purchases In U.S. Unexpectedly Decreased 0.5% In June,” Bloomberg, 7/16/12)

“A Weakening Job Market Is Sapping Households Of The Confidence And The Incomes Needed To Boost Expenditures…” “A weakening job market is sapping households of the confidence and the incomes needed to boost expenditures, which account for about 70 percent of the economy. Without gains in spending at retailers such as Target Corp. and Macy’s Inc., the expansion will have a difficult time gaining momentum.” (Alex Kowalski, “Retail Purchases In U.S. Unexpectedly Decreased 0.5% In June,” Bloomberg, 7/16/12)

Middle-Class Americans May Still Be Struggling – But President Obama’s Allies And Donors Are Doing Fine At The Expense Of Taxpayers:

“Nearly 200 Of [President Obama’s] Biggest Donors Have Landed Plum Government Jobs And Advisory Posts, Won Federal Contracts Worth Millions Of Dollars For Their Business Interests…” “More than two years after President Obama took office vowing to banish ‘special interests’ from his administration, nearly 200 of his biggest donors have landed plum government jobs and advisory posts, won federal contracts worth millions of dollars for their business interests or attended numerous elite White House meetings and social events, an investigation by iWatch News has found.” (Fred Schulte, et al, “Obama Rewards Big Bundlers With Jobs, Commissions, Stimulus Money, Government Contracts, And More,” iWatch News, 6/15/11)

“Several Political Allies” Of President Obama Had “Ties To Companies Receiving Chunks” Of Taxpayer Money From The Stimulus. “A joint investigation by ABC News and the Center for Public Integrity that will air on World News with Diane Sawyer tonight has found that Westly is just one of several political allies of the president who have ties to companies receiving chunks of that money through loans, grants, or loan guarantees.” (Brian Ross and Matthew Mosk, “Did Obama Administration Play Favorites With Energy Loans?,” ABC News, 10/30/11)

President Obama Put A Top Fundraiser “In Charge Of Hiring In The Obama White House, Helping Place Loyalists And Fundraisers In Many Key Positions.” “After the election, Gips was put in charge of hiring in the Obama White House, helping to place loyalists and fundraisers in many key positions. Then in mid-2009, the new president named him ambassador to South Africa. Level 3 Communications, in which Gips retained stock, meanwhile received millions of dollars of government stimulus contracts for broadband projects in six states—though Gips said he was ‘completely unaware’ of the stimulus money.” (Fred Schulte, et al, “Obama Rewards Big Bundlers With Jobs, Commissions, Stimulus Money, Government Contracts, And More,” iWatch News, 6/15/11)

The Washington Post: “You Can Call It Crony Capitalism Or Venture Socialism — But By Whatever Name, The Energy Department’s Loan Guarantee Program Privatizes Profits And Socializes Losses.” (Editorial, “The Energy Department’s Loan Guarantee Program Is The Real Solyndra Scandal,” The Washington Post, 11/17/11)