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A bombshell was dropped by the Commerce Department, when it released data that the economy slowed to a barley measurable 0.1% growth in the first quarter of this year.

This is the weakest pace since the end of 2012; and dramatically down from 2.6% rate in the previous quarter.

Many attribute the low growth to the severe effects of the extreme weather which griped the majority of the country, but other factors played a role.

Business investment fell 2.1%, spending on business equipment dropped dramatically at a 5.5%, and residential construction fell to 5.7%. Housing took a big hit by higher home prices and a shortage of available homes.

The administration attributes this slow growth to the effects of the extreme weather of the past few months.  White House Press Secretary Jay Carney stated, “Outside economists have estimated that between 1 percent and 1.5 percent of GDP can be attributed to that weather — in other words, a reduction of 1 to 1.5 percent in GDP as a result of what was historically severe weather, one of the coldest winters on record, the greatest number of snowstorms on record.  And that clearly had an impact.”

Jason Furman, the Chairman of the Council of Economic Advisers for the president stated, “The first quarter of 2014 was marked by unusually severe winter weather, including record cold temperatures and snowstorms, which explains part of the difference in GDP growth relative to previous quarters.”

As expected, Republicans pounced on this report with Brendan Buck, spokesman for House Speaker John Boehner stating, “This report is more than a low number; it is a reflection of the real economic despair that persists in the sixth year of the Obama presidency.”

Rep. Kevin Brady, R-Texas, chairman of the Joint Economic Committee, said “the only people doing well in this recovery are those who have benefited from the Federal Reserve’s continued monetary morphine that has juiced profits on Wall Street, while family incomes have stagnated.”

The Federal Reserve, under Janet Yellen, is still continuing its trillion dollar bond buyback program but reducing it by $10 billion dollars between each Federal Reserve meetings.

This report comes on the heel at the beginning of the week with a report by the National Employment Law Project which showed that most of the jobs being created were in fast food and the retail industry.

Syndicated columnist George Will commented harshly on the administrations stewardship of the economy. “Now, we’re in commencement season and kids are graduating, they’re getting their diplomas and they are graduating into an economy where 40% of recent college graduates are either unemployed or are in jobs, according to our own government, that do not require college degrees. 44% of the jobs created since the recession — ended 5 years ago this coming June — are either in food services, retailing, or other low-wage, empty jobs.”

We will have to see what happens on Friday when the Labor Department releases April’s employment report.  Many economists expect 200,000 jobs created in April, but we will have to see.         

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