US Economy grows 3.5%, biggest growth in 2 years

[jasonk282]

http://www.foxnews.com/politics/2009...est=latestnews

There is a reason why. the GDP is broken down into 3 areas CIG or GDP = private consumption + gross investment + government spending + (exports − imports).
Well I know that as a whole the economy did not get bigger by private consumption(spending) considering 10% unemployment. I also know that Gross investment(Banks) flopped big time so its not that. I also know that Government Spending was through the roof resulting in you guessed it "Big Government". So in reality the only thing that got bigger in the past 2 years was the Government

BTW: G (government spending) is the sum of government expenditures on final goods and services. It includes salaries of public servants, purchase of weapons for the military, and any investment expenditure by a government. It does not include any transfer payments, such as social security or unemployment benefits.

All those Billions that went towards the bailout packages and all the advisors that we are paying is included in the government spending, you can not include the defense Bill as it was signed yesterday after the numbers were tallied.

Funny that these numbers are released 1 week before major elections and you know its going to be scaled down after the elections but we won't hear about it.

 

[titsrock]

What elections are happening...:dunno: None around my neck of the woods thank god...:dunno:

I don't think any incumbent politician--dem or wacknut--will be trumpeting this news. Not with unemployment where it is and with the breadlines forming...

 

[jasonk282]

What elections are happening...:dunno: None around my neck of the woods thank god...:dunno:

I don't think any incumbent politician--dem or wacknut--will be trumpeting this news. Not with unemployment where it is and with the breadlines forming...

Sorry the election in NJ and VA that all the pundints are watching to gague how the nation will vote in 2010. I agree with the incumbent part but republicans had nothing to do with this health care bill, just about gives them a free pass in most people's minds.

 

[om3ga]

Meanwhile the UK are still languishing in a recession....

 

[jasonk282]

Meanwhile the UK are still languishing in a recession....

Its cool we have numerous bank failures and 10% unemployment but our government is spending like money grows on trees.

 

[titsrock]

Its cool we have numerous bank failures and 10% unemployment but our government is spending like money grows on trees.

They are spending because the gov't actually doesn't want breadlines.

If the Gov't turned its back on the American economy, let's say Dubya said, "Sorry America, I know Wall St just crashed, I know the Big 3 are about to lay off 300,000+ and go bellyup, I know most of you just lost your houses and savings accounts because BofA, Wells Fargo and Citi just bit the dust, taking your money down with them, but this is part of free market capitalism and it made our country great. This must happen..."

If the Gov't did nothing, what would happen, how much greater would unemployment be and when would we experience a turnaround?

 

[Rey C.]

GROSS DOMESTIC PRODUCT: THIRD QUARTER 2009 (ADVANCE ESTIMATE)


Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.5 percent in the third quarter of 2009, (that is, from the second quarter to the third quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.7 percent.

The Bureau emphasized that the third-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 5). The "second" estimate for the third quarter, based on more complete data, will be released on November 24, 2009.

The increase in real GDP in the third quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), exports, private inventory investment, federal government spending, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The upturn in real GDP in the third quarter primarily reflected upturns in PCE, in private
inventory investment, in exports, and in residential fixed investment and a smaller decrease in nonresidential fixed investment that were partly offset by an upturn in imports, a downturn in state and local government spending, and a deceleration in federal government spending.

Motor vehicle output added 1.66 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change. Final sales of computers subtracted 0.11 percentage point from the third-quarter change in real GDP after subtracting 0.04 percentage point from the second-quarter change.

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

It was 26 years ago this fall that I enrolled in my first Economics course. The Bureau of Economic Analysis was formed about 40 years ago, I believe. And to be honest, I have never heard the accusation that the BEA gigs statistics in favor of any party, President or political philosophy. It produces completely data driven reports, and it is a data driven organization. But if anyone has information to the contrary, I would dearly love to see it. In fact, economists, central bankers and the BoD's, CEO's and CFO's of every major corporation in the world would dearly love to see that evidence. At the end of a football game, the score board reflects the final score. We are now at the end of the 3rd quarter, and it's generally the case that advanced estimates are released about this time. If GDP had been down by 3.5%, the number would have still been released today.

 

[jasonk282]

The Bureau emphasized that the third-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 5). The "second" estimate for the third quarter, based on more complete data, will be released on November 24, 2009

So they don't have all the data. and a second number will come out in the end of november, well why not just wait till the end of November to make an announcement?

 

[CunningStunts]

It's like they are bailing out a sinking Titanic with buckets... this I fear is only a temporary tick up, and the recession we are in is only the tip of the iceberg... it's like no one here in Washington that actually has power took Econ 101 in college lately.

 

[BlueBalls]

Rock out with your cock out......

 

[busenbust]

http://board.freeones.com/showpost.php?p=3768583&postcount=3

:sing: Start selling the news :sing:

 

[Rey C.]

So they don't have all the data. and a second number will come out in the end of november, well why not just wait till the end of November to make an announcement?

Yes, a second number will be released in November. And even after that, a revision is possible. Advanced estimates and revisions are just part of the process that's been followed since I've been aware of these statistics (early/mid 80's).

In the same way that companies track earnings and profits throughout the quarter, and meetings and plans are based on those advanced numbers, the same is true here.

If something about the process had changed vs. other releases, maybe there would be something odd about this. But there's not. Up, down or even... the number is what it is. That's how the BEA operates. Which IMO, is a good thing. Many sectors of the global economy depend on the integrity of this type of data.

 

[FlyingWallaby]

Biggest growth in 2 years?!!?!? Yeah..practically the ONLY growth in 2 years, and you can barely call this "real" growth. :1orglaugh

 

[jasonk282]

Biggest growth in 2 years?!!?!? Yeah..practically the ONLY growth in 2 years, and you can barely call this "real" growth. :1orglaugh

It's real.......big Government it's what the people voted for.

 

[JacknCoke]

They are spending because the gov't actually doesn't want breadlines.

If the Gov't turned its back on the American economy, let's say Dubya said, "Sorry America, I know Wall St just crashed, I know the Big 3 are about to lay off 300,000+ and go bellyup, I know most of you just lost your houses and savings accounts because BofA, Wells Fargo and Citi just bit the dust, taking your money down with them, but this is part of free market capitalism and it made our country great. This must happen..."

If the Gov't did nothing, what would happen, how much greater would unemployment be and when would we experience a turnaround?

Here we go....

Do you always feel the need to bring up Bush?? Now you are attacking him on hypothetical analysis based on on facts what so ever. Unbelievable...:dunno:

 

[drf]

When it starts to effect the people that are still unemployed, like myself and means I can finally find a decent job then MAYBE I'll get excited. Until then tah tah.

 

[Rey C.]

When it starts to effect the people that are still unemployed, like myself and means I can finally find a decent job then MAYBE I'll get excited. Until then tah tah.

I hear you and I understand how you feel. But it would be unlikely to see employment pick up if the economy was still contracting. Employment/unemployment is a lagging indicator. Always has been. Always will be. That doesn't make the job losses any easier to accept for individuals, but businesses generally don't hire more people if the economy is continuing to sink.

 

[georges]

the obama way of fixing the economy has done nothing positive till yet, let's see what happens next.

 

[FlyingWallaby]

the obama way of fixing the economy has done nothing positive till yet, let's see what happens next.

I'm actually afraid of what happens next.

 

[Rey C.]

the obama way of fixing the economy has done nothing positive till yet, let's see what happens next.

What do you think would have been the proper course of action, Georges? Say from Q1 of this year forward.