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Title: U.S. economy picked up speed as 2010 ended
Source:
Reuters
URL Source: http://www.msnbc.msn.com/id/41310447/ns/business-eye_on_the_economy/
Published: Jan 28, 2011
Author: Reuters
Post Date: 2011-01-28 09:12:30 by go65
Keywords: None
Views: 30235
Comments: 52
WASHINGTON — The U.S. economy gathered speed in the fourth quarter, though a touch below expectations, with the biggest gain in consumer spending in more than four years and strong exports offering the clearest signals yet that a sustainable recovery is under way. Even with growth quickening, however, progress reducing unemployment has been painfully slow, and the report on U.S. gross domestic product on Friday is little comfort for millions of unemployed Americans or the Federal Reserve officials on a jobs-creation vigil. The economy grew at a solid 3.2 percent annual rate in the final three months of 2010, the Commerce Department said, after expanding at a 2.6 percent pace in the third quarter. The rise was a touch below economists' expectations for a 3.5 percent rate. For the whole of 2010, the economy grew 2.9 percent, the biggest gain since 2005. The economy contracted 2.6 percent in 2009.
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#1. To: All (#0)
(Edited)
And "the stimulus didn't work" argument comes to an end.
Of course the stimulus will cause the economy to pick up. There's no way around it. When you pump trillions into the economy it can't help but spur activity. Now, pretty quickly prices will rise to meet the new level of money. People don't seem to realize that just because more money is changing hands and just because financial markets are going higher that it doesn't mean that the economic situation is improving. If a rising GDP and a soaring stock market truly were strong indicators of economic health, then Zimbabwe would have been one of the strongest economies on the planet over the last 10 years. Inflation changes everything.
You are the first conservative I have ever seen (on these types of forums at least) admit this reality. Progress.
It's not progress, it's inflation and more debt. The economy picking up after a massive infusion of cash is a false indicator. It's simply re-inflating an artificial bubble. Now, are our wages going to rise like the prices of commodities surely will, to meet this new level of money? NOT EVEN CLOSE! So what we've done is to raise the price of EVERYTHING, while our wages stay the same or slightly rise. We've simply lowered our standard of living.
That's like saying someone in the hospital should not be kept alive with feeding tubes or breathing machines until they recover because its a false indicator of health/life. Dr Krugman in a series of opinion articles lays the case the Federal govt needed to do more stimulus. Because when private business is not hiring (and is in fact firing) and those who still have a job are not spending (the unemployed can't spend much) then who will pick up the slack in this consumer economy? The economy is on life support until businesses and consumers go back to normal functions of hiring, handing out raises and the people spending. What is crazy is that the Republicans if McCain won would have done EXACTLY what Obama did via the stimulus maybe even more so.
That's like saying someone in the hospital should not be kept alive with feeding tubes or breathing machines until they recover because its a false indicator of health/life. "That's like saying someone in the hospital should not be kept alive"... Had this happen and the nurse (that would be you, Godwin;} saying I'm cruel to just turn off the Life Support (and increase the morphine) just like that. And I just looked at the nurse, dumbfounded (for an instant) and then launched. My wife calmed me after the first sentence. She called in the Head nurse. The first nurse was transferred out of ICU. The Reason for All the Above. The Patient was ALREADY dead. And that's what you're not getting, Godwin. It's a Zombie Economy now. Extend and Pretend while the Top 50 000 pretend they're getting ever more wealthy and powerful (doing neither, btw;}.
I hear ya. I would have loved a nationalized economy or to do what Argentina's workers did and take over closed factories and run them as collectives but I live in the here and now not I don't want to wait for an idealized situation. We don't know if we are a coma economy or a zombie economy just yet. Being in a coma with a chance of recovery is better than the living dead though.
O yes we do. I've been detailing it since Bear, Lehman, BofA forced to take insolvent Merrill lynch. And when it started May 2005 PO and Arkansas Lumber Mills shut down state wide. Since Apr 09 Housing is down 3.3 % with ALL of the desperation of the Imperial City throwing trillions to keep them up. And the stock Markets up 100%. "Being in a coma with a chance of recovery is better than the living dead though." That's right. But back to 'my patient'. She had full blown Alzeimers' and then a heart attack. The husband (same age) didn't notice. She was sleeping on the sofa as he watched a tv ball game. The husband then called his son, who then called EMT's. Who then 'revived' her. And that's how she ended up in the ICU with 'life support' instead of at the morgue where she shoulda been. See the analogy?
#30. To: mcgowanjm (#27)
Like I said. I am all for nationalizing the economy all day long.
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#4. To: go65 (#1)
And "the stimulus didn't work" argument comes to an end.
#5. To: We The People, go65 (#4)
Of course the stimulus will cause the economy to pick up. There's no way around it. When you pump trillions into the economy it can't help but spur activity.
#6. To: Godwinson (#5)
(Edited)
You are the first conservative I have ever seen (on these types of forums at least) admit this reality. Progress.
#12. To: We The People, go65, lucysmom, mcgowanjm (#6)
It's not progress, it's inflation and more debt. The economy picking up after a massive infusion of cash is a false indicator. It's simply re-inflating an artificial bubble.
#20. To: Godwinson (#12)
It's not progress, it's inflation and more debt. The economy picking up after a massive infusion of cash is a false indicator. It's simply re-inflating an artificial bubble.
#22. To: mcgowanjm, We The People (#20)
It's a Zombie Economy now. Extend and Pretend while the Top 50 000 pretend they're getting ever more wealthy and powerful (doing neither, btw;}.
#27. To: Godwinson (#22)
We don't know if we are a coma economy or a zombie economy just yet
Replies to Comment # 27.
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