"While the latest revision GDP numbers did not alter the overall point that growth has slowed markedly over the past two quarters, a couple of points are worth highlighting.
"First, it must be noted that government accounted for nearly half the 1.7% real growth rate in the second quarter. The private sector barely inched ahead by 0.9%. If things got any worse in the third quarter, which comes to an end today, we could be looking at a de facto private-sector recession.
"Second, the growth in corporate profits slowed dramatically in the second quarter. In addition, proprietors' income growth remains quite sluggish. That's trouble for investment and job creation.
"In the end, the economy and returns on business continue to suffer. A public policy focused on increased taxes, expanded regulation, and more spending, which is what we have right now, explicitly works against a robust recovery in business and the overall economy."