27 July 2012

This Quarter's GDP Numbers

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H/t Paul Krugman for the Graph Pr0n
The GDP numbers for the 2nd quarter sucked:
The U.S. economy probably expanded in the second quarter at the slowest pace in a year as a softening labor market caused Americans to cut back on spending, economists said before a report today.

Gross domestic product, the value of all goods and services produced, rose at a 1.4 percent annual rate after a 1.9 percent gain in the prior quarter, according to the median forecast of 81 economists surveyed by Bloomberg News. Consumer purchases, which account for about 70 percent of the world’s largest economy, may have grown at the weakest pace in a year.
As the good Doctor notes, the real; problem is that the stimulus was too small in the first place, and too short as well, so we are effectively doing austerity in the worst recession in 80 years.


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