United States News
See other United States News Articles
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: 30274
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.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
Begin Trace Mode for Comment # 45.
#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 won't happen as long as they have the Obamanomics sword of Damocles over their head. They are not going to extend themselves only to be screwed by Kenyancare, Kenyan cap and tax, etc.
Both were originally Republican ideas (that was back in the days when Republicans had ideas).
There are no replies to Comment # 45. End Trace Mode for Comment # 45.
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#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.
#14. To: Godwinson (#12)
The economy is on life support until businesses and consumers go back to normal functions of hiring, handing out raises and the people spending.
#45. To: no gnu taxes (#14)
They are not going to extend themselves only to be screwed by Kenyancare, Kenyan cap and tax, etc.
Replies to Comment # 45.
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]