The Real Reason For 2% GDP

Discussion in 'Economy' started by longknife, Oct 26, 2012.

  1. longknife
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    longknife Platinum Member

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    by Matthew Boesler @ Q3 GDP Government Spending - Business Insider

    http://static4.businessinsider.com/image/508a8c7becad04b937000014-400-/uss-eisenhower.jpg
    USS Eisenhower

    Today's Q3 GDP release beat expectations – the economy grew 2.0 percent in the third quarter, according to this first reading, while economists expected a 1.8 percent gain.

    The main reason the report cited for the acceleration in Q3 GDP growth from Q2's 1.3 percent rate was "an upturn in federal government spending," which was a positive contribution to GDP since the third quarter of 2010.

    And the primary driver of the spending increase came from investments in national defense.

    In fact, defense spending amounted to 0.64 percentage points of the 2.0 percent rise in GDP – or 32 percent of the economic growth in the third quarter (click to enlarge):

    GDP defense spending

    So, if you stripped out defense spending, the economy grew closer to a 1.36 percent rate in Q3, closer to Q2's final estimate of 1.3 percent.

    Much more @ link

    Another example of the administration's desperate atempt to hide the truth from the American people.

    :cool:
     
  2. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    I'm guessing that 2% growth rate will get lowered a few points in the coming months, as will that ridiculous Sept UE rate get adjusted up to 8.0%.
     
  3. Mick01
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    Mick01 Rookie

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    All I know is that post election, the US is going for a long ride downhill.
     
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  4. longknife
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    longknife Platinum Member

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    It should also be pointed out that federal government spending is high at the start of every fiscal year. Thus, this supposed "lift" in the economy is another administration desperate attempt to shore up the Inept-in-Chief. :(
     
  5. jwoodie
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    jwoodie Gold Member Supporting Member

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    Whoopee 2%: Talk about lowered expectations! We need PRIVATE SECTOR JOB GROWTH and we need it NOW.
     
  6. Freemason9
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    Freemason9 Gold Member

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    Yes, and the election of Willard "Nine Wives" Romney will create Private Sector Job growth. The mere presence of a corporate white man as president again will be like Viagra to the limp dick of American corporate responsibility.

    LOL
     
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  7. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Pretty sure he'll do a better job than Obama did, at least we should try a different approach. BTW, you're a dipweed. "Nine wives"?
     
  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    CBO growth analysis report...
    :eusa_eh:
    CBO: Scarcity of Young and Females in Labor Force a Drag on Economic Growth
    December 5, 2012 - The Congressional Budget Office has published an analysis of why recent economic growth—and, more tellingly, potential economic growth---has been less than half of what it typically has been in post-World War II recovery cycles.
    See also:

    CBO: Current Law Brings 55% Increase in Annual Spending, $4.25T in New Debt--And Record Taxation
    December 5, 2012 - If Congress allows current laws signed by President Barack Obama to stand and follows the fiscal path they have set for the next decade, federal tax revenues will rise to a record level as a percentage GDP, according to the Congressional Budget Office, but annual federal spending will also increase by 55 percent and continuous deficits will require Congress to lift the federal debt limit by another $4.25 trillion even as the government rakes in unprecedented tax revenue.
     
    Last edited: Dec 6, 2012
  9. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    " Despite record-high federal revenues, the federal debt subject to the statutory limit will increase to $20.644 trillion by 2022, which is $4.25 trillion beyond the current debt limit of $16.394 trillion. "


    I think the federal debt will be a lot higher than this by 2022. We could be close to $20 trillion by 2016, tax and spend policies will see to that.
     
  10. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    Its no surprise that a president with two communist parents who voted to the left of Bernie Sanders, an open communist, is pushing hard to suspend the debt ceiling so he faces no spending or debt restrictions at all!!

    You'd think even a communist would note that the current recession/depression taught us that unlimted borrowing and spending has consequences!!!
     
    Last edited: Dec 6, 2012

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