The Free Press, Mankato, MN

News Ticker

State, national news

February 9, 2014

U.S. economy may be stuck in slow lane for long run

WASHINGTON — In the 4½ years since the Great Recession ended, millions of Americans who have gone without jobs or raises have found themselves wondering something about the economic recovery:

Is this as good as it gets?

It increasingly looks that way.

Two straight weak job reports have raised doubts about economists' predictions of breakout growth in 2014. The global economy is showing signs of slowing — again. Manufacturing has slumped. Fewer people are signing contracts to buy homes. Global stock markets have sunk as anxiety has gripped developing nations.

Some long-term trends are equally dispiriting.

The Congressional Budget Office foresees growth picking up through 2016, only to weaken starting in 2017. By the CBO's reckoning, the economy will soon slam into a demographic wall: The vast baby boom generation will retire. Their exodus will shrink the share of Americans who are working, which will hamper the economy's ability to accelerate.

At the same time, the government may have to borrow more, raise taxes or cut spending to support Social Security and Medicare for those retirees.

Only a few weeks ago, at least the short-term view looked brighter. Entering 2014, many economists predicted growth would top 3 percent for the first time since 2005. That pace would bring the U.S. economy near its average post-World War II annual growth rate. Some of the expected improvement would come from the government exerting less drag on the economy this year after having slashed spending and raised taxes in 2013.

In addition, steady job gains dating back to 2010 should unleash more consumer spending. Each of the 7.8 million jobs that have been added provided income to someone who previously had little or none. It amounts to "adrenaline" for the economy, said Carl Tannenbaum, chief economist for Northern Trust.

And since 70 percent of the economy flows from consumers, their increased spending would be expected to drive stronger hiring and growth.

Text Only | Photo Reprints
State, national news
  • Injured snowy owl ready to be released ST. PAUL (AP) — A rare snowy owl that gained national attention when it was apparently hit by a bus in the nation's capital is scheduled to be released into the wild after a rehab stint in Minnesota. The Raptor Center at the University of Minnesota

    April 18, 2014

  • Court case to test 'Buy the Farm' law NEW PRAGUE (AP) — A case set for trial next week is expected to test Minnesota's "Buy the Farm" law, which is meant to require utilities building high-voltage power lines to buy out farms in the way if affected landowners demand it. The case pits th

    April 18, 2014

  • Judge strikes down part of state energy law MINNEAPOLIS (AP) — A federal judge ruled Friday that part of a Minnesota law designed to promote the use of renewable energy is unconstitutional because it attempts to control business that takes place outside state borders — and she barred Minnesota

    April 18, 2014

  • White House updating online privacy policy A new Obama administration privacy policy released Friday explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, and it clarifies that online comments, whether tirades or tribut

    April 18, 2014

  • Horse virus cases showing up in Upper Midwest BISMARCK, N.D. (AP) — State officials in the Upper Midwest are cautioning horse owners about a virus that spreads easily among the animals and can lead to breathing problems, abortions and nervous system disorders. Three cases of equine herpesvirus

    April 18, 2014

  • Bear attacks spark debate: Kill them, or leave them alone? ORLANDO, Fla.—Dallas Smith thinks he has the answer to Central Florida’s black-bear threat, and he’s ready to lock and load it. “I think the fear of God needs to be put back into them,” said Smith, 47, who wants state authorities to lift restriction

    April 18, 2014

  • Tourism push plays up 'Only in Minnesota' ST. PAUL — (AP) — Say goodbye to "More to Explore." Minnesota tourism promoters ushered in a new slogan Thursday that focuses on "Only in Minnesota" experiences as part of their largest-ever advertising campaign. The revamped message kicks off a maj

    April 17, 2014

  • mfp ap pipeline photo Minnesota Pipe Line seeks to expand capacity MINNEAPOLIS (AP) — Minnesota Pipe Line Co. announced plans Thursday to nearly double the capacity of a crude oil pipeline that carries oil from Canada and North Dakota to the two refineries in the Twin Cities that produce most of Minnesota's and much

    April 17, 2014 1 Photo

  • Holder asserts his commitment to fighting heroin WASHINGTON — Attorney General Eric H. Holder Jr. has been crusading for more lenient treatment for nonviolent drug offenders, making it a top priority before he is expected to leave office this year. Recently, however, he has been forced to confront

    April 17, 2014

  • Less-schooled whites lose longevity, study finds ATLANTA — Barbara Gentry slowly shifts her heavy frame out of a chair and uses a walker to move the dozen feet to a chair not far from the pool table at the Buford Senior Center. Her hair is white and a cough sometimes interrupts her speech, but she

    April 17, 2014