GDP Drops As War Economy Slows Down

By: Wednesday January 30, 2013 7:07 am

Call it a victory for Military Keynesianism theory as today’s dreadful GDP numbers seem to be a result of a drop off in military spending. The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus. The economy [...]

US GDP Data Revised Down in Second Quarter

By: Thursday September 27, 2012 9:00 am

Economic growth for the second quarter of 2012 was revised down sharply to 1.3%, a reminder that economic activity really stalled out in the spring. Thursday’s report underscored that the recovery has proved insufficient to pull down the unemployment rate, which has been stuck between 8.1 percent and 8.3 percent all year. The renewed weakness [...]

Dems Try to Spin Budget Cuts: Economic Reality Impervious to That Spin

By: Tuesday April 12, 2011 1:13 pm

I have to chuckle at the lipstick that the Senate Appropriations Committee put on their pig of a budget deal for 2011. In particular, the release touts spending levels above HR 1, the Republican budget, that are actually cuts from the 2010 levels. And what people aren’t talking about is that this budget establishes a [...]

Government Shutdowns Cost Money

By: Friday April 8, 2011 9:20 am

I think there’s a notion out there, expressed on the right, that shutting down a bunch of government functions that they don’t like anyway has benefits in and of itself, and furthermore it saves the government cash in the short run. But that’s actually not true. “There is absolutely no way this saves money. Zip,” [...]

GDP Growth in 2011 Q1 Scaled Back by Forecasters

By: Monday March 28, 2011 1:00 pm

After the tax cut deal, most economic analysts raised their forecasts for GDP and job growth in 2011. They didn’t take the second half of the deal into account; budget cuts and a probable government shutdown that will eat into both areas. In addition, mass unrest in the Middle East, rising commodity prices, no sign [...]

Goldman Sachs Analysis: GOP Continuing Resolution Would Reduce GDP By 1.5-2%

By: Wednesday February 23, 2011 2:10 pm

The in-the-know types in Washington keep assuring the little people that there’s some secret negotiations on walking back from the budget standoff in Washington, avoiding a government shutdown. Pardon me if I don’t see it happening. It’s true that Republicans are working on a stopgap continuing resolution that would last two weeks, not four like [...]

GDP Growth Jumps Above 3% in 2010 Q4

By: Friday January 28, 2011 6:31 am

The economy grew at a slightly slower rate than expected in the 4th quarter, but increased consumer spending led to a 3.2% annualized rate. This was the highest output in four years, since before the recession. One particularly encouraging detail in the report: Final sales — GDP minus the change in business inventories — grew [...]

Health Care Spending Still Rises Despite Great Recession

By: Thursday January 6, 2011 8:39 am

The top-line number is that health care spending grew in 2009 at the smallest rate in 50 years. Great! But also, the US economy didn’t grow at all in 2009. In fact it declined. So “slow growth” in health care is almost entirely meaningless if disconnected from growth as a percentage of GDP. And when [...]

Growth Would Need to Be Unrealistically Large to Pull Nation Out of Unemployment, Housing Crises

By: Monday January 3, 2011 7:02 am

Economic growth, in theory, can solve the two most niggling problems facing the country – unemployment and a soft housing market. Growth can lead to more demand, forcing businesses to hire to keep up the supply. Paradoxically, this would lower corporate profits from 2010, where they hoarded cash. Spending that cash would increase overall growth. [...]

Our Brand Is Crisis – Summers Predicts Double Dip Without Tax Deal

By: Wednesday December 8, 2010 12:07 pm

Larry Summers just dusted off the bazooka, telling reporters that, if Obama’s tax deal doesn’t pass, the failure will “materially increase the risk” that the economy will stall out and we will experience a double dip recession. Summers added that without a bill, economic analysts will issue downward revisions in growth/employment. The White House combined [...]

Corporations Show Largest Profits in History Amidst Jobs Crisis

By: Tuesday November 23, 2010 10:13 am

According to revised statistics, the US economy grew at a faster rate than first expected, up to 2.5%. Earlier growth in Q3 2010 was estimated at 2%. But the entire problem with looking at this topline number is reflected in these three paragraphs: But the most recent increase in GDP still isn’t strong enough to [...]

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