Economic Slowdown Strains Budget Talks

Signs that the U. S. economic recovery may be stalling have changed the tone of recent budget negotiations in Washington and are likely to increase the divide between Democratic and Republican lawmakers in the weeks to come.

New government data released on Friday showed a meager jobs gain of just 54,000 in May as well as a recent drop in consumer confidence and a slowdown in manufacturing.

This information has raised fears in the country that economic growth is weakening and has added a sense of urgency to ongoing deficit reduction negotiations.

However, while Republicans and Democrats may share a similar sense of urgency, they have identified two very different causes of the economic slowdown as well as two very different solutions.

Most Republicans believe that the weak economic data indicates that Obama’s economic policies have failed and they blame his 2009 stimulus package for creating high deficits and for reducing consumer confidence.

Democrats, however, fear that the government has begun to cut spending too quickly following the recession. They believe that spending cuts have weakened the country’s economic recovery.

In response, most Republican lawmakers are pushing for fiscal restraint and major cut-backs, while some Democrats, economists, and financial market analysts are warning that too much fiscal restraint this year could further hinder the U. S. economic recovery.