A revision by the Commerce Department indicates the United States economy contracted by nearly three percent in the first quarter of the year.
The numbers were bad enough before.
The Commerce Department earlier reported the economy shrunk by a percentage point in the first three months of the year. The revision discloses the economy struggled at the beginning of the year more than officials thought; that it contracted by 2.9%.
“Well, I think it just reaffirms that we have a very sluggish and a very stagnant economy,” says Sen. Deb Fischer.
A pull back in spending by consumers gets the blame. Economists at the Commerce Department hope that consumers will resume spending now that we have left winter behind and welcome warmer temperatures.
Fischer says Congress and President Barack Obama simply haven’t concentrated on economic policy as much as they should.
She hopes the Workforce Innovation and Opportunity Act just passed by the Senate might help by revising federal job training programs. It also would provide governors flexibility in molding job training programs to fit the needs of their states.
Fischer adds that Congress could help by tackling tax reform. She adds federal regulations have become excessive, holding back businesses from expanding and adding jobs.
“We need to look at comprehensive tax reform and we need to look at reducing these burdensome regulations,” according to Fischer.