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mlyonsd
08-27-2010, 07:13 AM
Economic Growth Rate Downgraded to Anemic 1.6 Percent in Second Quarter


Published August 27, 2010 | FoxNews.com

WASHINGTON -- The commerce is revising downward the economic growth from April to June to 1.6 percent annualized -- a decline from the original 2.4 percent forecast and much slower than the 3.7 percent of the first quarter 2010.

The trade imbalance -- the largest since 1947 -- took away nearly 3.4 percent from second quarter growth, the Commerce Department said.
The current quarter isn't expected to show much improvement, with many economists forecasting growth of only 1.7 percent.

The barely-there number isn't enough keep pace with population growth, which needs about 3 percent annualized growth just to break even each year and prevent unemployment, currently 9.5 percent, from rising.
Economists say the number could be a taste of weakness to come -- and fears of a double-dip recession are growing.

The economy has grown for four straight quarters, but that growth has averaged only 2.9 percent, a weak pace after such a steep recession.
Business investment in new machinery, computers and software, increasing at 25 percent in the second quarter from the first, is credited with much of the growth last quarter, but the benefit is tempered by the fact that much of that spending paid for imported products.

Imports surged 32.4 percent, the most since 1984. That overwhelmed a 9.1 percent increase in exports.

Though business investment was a big assist to the growth rate, that is driving part of the concern about the third quarter. A report earlier this week showed that business orders for capital goods fell in July, suggesting that business purchases will decrease this quarter.

Consumers spent a bit more in the second quarter than previously estimated. Their spending rose at a 2 percent annual rate, slightly higher than the first quarter's 1.9 percent.

Economists expect many other supports for economic growth to fade. Federal government spending and the housing sector bolstered the economy last quarter, but housing has slumped again and will likely drag growth down in the third quarter.

The impact of the federal government's $862 billion stimulus package is also projected to taper off this year.

The government's GDP report measures the economy's output of goods and services and covers everything from autos to haircuts. Friday's report is the second of three estimates the government makes each quarter.

The Associated Press contributed to this report.

HonestChieffan
08-27-2010, 07:13 AM
Biden will fix it.

mlyonsd
08-27-2010, 07:15 AM
I know, let's throw another trillion of borrowed money at it and pretend it's working.

Eventually we'll look brilliant./Obama economic team

HonestChieffan
08-27-2010, 07:19 AM
Look at the lives touched.

blaise
08-27-2010, 07:21 AM
You can't put a dollar figure on hope.

HonestChieffan
08-27-2010, 07:30 AM
Its working just slower than some had hoped.

InChiefsHell
08-27-2010, 07:35 AM
Well, I for one sure Hope this Changes...

blaise
08-27-2010, 07:36 AM
Previous administration drove it into a ditch and Obama fixed the car and pushed it out, but previous administration previous administration Republicans are trying to push the car into the ditch and Obama has it running like a fine tuned machine on the road but previous administration previous administration Republicans keep putting bad gas in the car and that's why previous administration previous administration the economy is still struggling.

HonestChieffan
08-27-2010, 07:45 AM
Those who dont believe will see the positives in time. This wasnt created in a day and will take time to fix.

InChiefsHell
08-27-2010, 08:04 AM
Those who dont believe will see the positives in time. This wasnt created in a day and will take time to fix.

In time...how much time? We are going backwards. This is not progress. luckily, most people in this country understand that...

HonestChieffan
08-27-2010, 08:14 AM
In time...how much time? We are going backwards. This is not progress. luckily, most people in this country understand that...

Oh but you overlook the good. Imagine how bad it would be without the dynamic vision and bold actions of the administration.

oldandslow
08-27-2010, 09:07 AM
Bush Jr. instituted a massive tax cut that increased the deficit and the recession began...

Obama developed a stimilus package that increased the deficit and the recession continued...

Rewind the DVR...

Bill Clinton and the republican congress balanced the budget and we had a decade of economic prosperity...

perhaps there is no causation, but one has to wonder.

chiefsnorth
08-27-2010, 09:24 AM
Bush Jr. instituted a massive tax cut that increased the deficit and the recession began...

Obama developed a stimilus package that increased the deficit and the recession continued...

Rewind the DVR...

Bill Clinton and the republican congress balanced the budget and we had a decade of economic prosperity...

perhaps there is no causation, but one has to wonder.

Is the sky blue in your world?

HonestChieffan
08-27-2010, 09:30 AM
HumptyObama sat on a wall......

Chief Henry
08-27-2010, 09:32 AM
One
Big
Ass
Mistake
America

Bill Parcells
08-27-2010, 09:32 AM
Thank goodness we passed that stimulus package. do you all know how bad it would have been without that?

FD
08-27-2010, 11:04 AM
Thank goodness we passed that stimulus package. do you all know how bad it would have been without that?

While we can't say for sure, there is nevertheless a consensus among economists that we would be much worse off without the stimulus.

http://www.econbrowser.com/archives/2009/11/globalinsight_MAD_Moodys.jpg

HonestChieffan
08-27-2010, 11:26 AM
Let me draw some graphs. I especially like the ones where data stops and speculation begins. Now, what point were we wanting to make?

KC native
08-27-2010, 12:13 PM
I told you guys this would happen. You guys are about 6 months late on this one.

vailpass
08-27-2010, 12:14 PM
I told you guys this would happen. You guys are about 6 months late on this one.

Get thee to Wall Street!

Saul Good
08-27-2010, 04:35 PM
I told you guys this would happen. You guys are about 6 months late on this one.yeah, everybody in this thread is just stunned that Obama, Pelosi et al couldn't turn this thing around by funneling trillions into pet projects. How did you ever know?

Bill Parcells
08-27-2010, 06:59 PM
While we can't say for sure, there is nevertheless a consensus among economists that we would be much worse off without the stimulus.

http://www.econbrowser.com/archives/2009/11/globalinsight_MAD_Moodys.jpg

But he campaigned that he could fix all these problems. they only got worse when he got in office..lol

Saul Good
08-27-2010, 07:12 PM
While we can't say for sure, there is nevertheless a consensus among economists that we would be much worse off without the stimulus.

http://www.econbrowser.com/archives/2009/11/globalinsight_MAD_Moodys.jpg

Of course we are going to produce more and employ more people in the short term if we commit to $2 trillion in new obligations. It's the long term that is really going to suffer. The problem is that even the short term hasn't gotten much of a boost, and we're still saddled with the debt.

I can go buy a Ferrari on credit, point to it and say, "without borrowing that money, I wouldn't have this beautiful car". It would be true, but that doesn't make it a good investment.

Saul Good
08-27-2010, 07:14 PM
Also, you'll notice that all of these reports show that the economy would have gotten itself to the same outcome a couple of months later without the $2 trillion in obligations without the stimulus.

Velvet_Jones
08-28-2010, 12:49 PM
4 + 5 / chair * Chrysler blinker fluid = good economy. Everybody knows that.