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-   -   7.2% GDP growth in the third quarter (http://www.ironworksforum.com/forum/showthread.php?t=76351)

HolyWarrior 10-31-2003 06:24 PM

from USA Today
Quote:

7.2% GDP growth fastest in 19 years
By Barbara Hagenbaugh, USA TODAY
WASHINGTON — The U.S. economy grew at the fastest pace in nearly two decades in the third quarter, signaling the three-year slowdown that has left millions of Americans jobless might finally be over.
Gross domestic product — the broadest gauge of activity within the USA — grew an annualized 7.2% in July, August and September, the biggest gain since 1984 and more than twice the 3.3% increase measured in the second quarter, the Commerce Department said Thursday.

"Pop the champagne corks," Bank One chief economist Diane Swonk says. "It's very much vindication that the U.S. economy is moving from a lackluster economy to a more rooted recovery."
Economists credited record mortgage refinancings, which pared monthly payments and freed cash, and tax cuts signed into law in late May. That included a $14 billion bonus for parents that hit mailboxes right before the back-to-school shopping season.
Consumer spending, which accounts for 70% of all activity in the $10 trillion economy, soared 6.6%, the biggest gain in more than five years.
Hmm...biggest in 19 years. Quick quiz: Who was in office 19 years ago?

That crashing sound you heard was the hopes of the Democrat candidates in 2004 [img]graemlins/evillaughter1.gif[/img]

Ronn_Bman 10-31-2003 07:36 PM

Bush couldn't possibly have anything to do with this! ;)

Skunk 11-01-2003 06:49 AM

Neither could 'giving' billions of dollars of US taxpayer's money to large Republican corporations via Iraq have anything to do with it either, eh? ;)

It's a short term boom as a result of heavy government spending and borrowing. It's a short term gain - at the expense of the long term economic health of the country.

Ronn_Bman 11-01-2003 08:49 AM

When the economy is bad it's Bush's fault, and when it starts improving, that's only because of the Republican looting of Iraq. :( The truth is that if tomorrow both America and Iraq flowed with freedom, peace, milk, and honey, Bush would receive no credit and in fact would then be blamed for what's wrong with the rest of the world by those who don't like him. ;)

The truth is that only time will tell what only time can tell. The rest is nothing but guess work based on our individual opinions. What we do know for sure, and what isn't guess work is that right now the US economy has seen it's largest jump in 20 years despite those who would pooh-pooh it. [img]tongue.gif[/img] :D

Seraph 11-01-2003 11:30 AM

Quote:

7.2% GDP growth fastest in 19 years
Yet we still managed to lose almost 150,000 jobs.

Faceman 11-01-2003 12:20 PM

Quote:

Originally posted by Seraph:
</font><blockquote>quote:</font><hr />7.2% GDP growth fastest in 19 years
Yet we still managed to lose almost 150,000 jobs. </font>[/QUOTE]What does a large corporation do with huge profits?
Right, they use the surplus funds to open up plants in low-wage countries and close less profitable plants in the States.

little movie tip: Michael Moore's first documentary "Roger and Me"

[ 11-01-2003, 12:20 PM: Message edited by: Faceman ]

Dreamer128 11-01-2003 02:03 PM

Quote:

Originally posted by Ronn_Bman:
When the economy is bad it's Bush's fault, and when it starts improving, that's only because of the Republican looting of Iraq. :( The truth is that if tomorrow both America and Iraq flowed with freedom, peace, milk, and honey, Bush would receive no credit and in fact would then be blamed for what's wrong with the rest of the world by those who don't like him. ;)

I love politics :D

Politics, n. Strife of interests masquerading as a contest of principles.
Ambrose Bierce (1842 - 1914), The Devil's Dictionary

Skunk 11-01-2003 09:16 PM

Quote:

Originally posted by Ronn_Bman:
When the economy is bad it's Bush's fault, and when it starts improving, that's only because of the Republican looting of Iraq. :( The truth is that if tomorrow both America and Iraq flowed with freedom, peace, milk, and honey, Bush would receive no credit and in fact would then be blamed for what's wrong with the rest of the world by those who don't like him. ;)

The truth is that only time will tell what only time can tell. The rest is nothing but guess work based on our individual opinions. What we do know for sure, and what isn't guess work is that right now the US economy has seen it's largest jump in 20 years despite those who would pooh-pooh it. [img]tongue.gif[/img] :D

Actually Ronn, I'm *not* attributing the 'blip' as a result of looting Iraq - but rather as one of the results of looting the US Treasury to pay for Iraq and for tax cuts.

However, the money was never in the Treasury in the first place - instead, Bush has borrowed the money to pay for both the War on Terrorism and the War on Tax ($374 billion worth of loans last year). The problem with loans is that not only do you have to pay them back - but you have to pay the interest on them too. :(

Now, loans are not a bad thing if they are used to in a manner which improves the Balance of Trade. But they weren't used for this purpose, they were used to buy votes.

Right now there is a large Balance of Trade deficit; more goods are being imported into the US than exported. Thus US consumers have used their tax cuts/US govt. loans to buy goods and services which, on the whole, orginated abroad rather than at home. Foreign economies then, have benefited more from the US govt. loans than the US economy - a rather odd state of affairs, don't you think?

Meanwhile, the federal budget is still in the red. So Bush is still facing choices of either raising taxes, slashing budgets or borrowing yet more money (or a combination of all three). Only thing is, the increased loan repayments and interest have to be met too - while actual income from foreign trade is down.

As for whether the opinion is based on a personal disklike for Bush - refute that. You know, I absolutely *loathed* Reagan and Thatcher - but I give full credit for what they did for their respective economies. They took long term measures which served their respective countries very well.

Bush, on the other hand, never has time for long-term goals, whether it is the economy, or (cough!) diplomacy and security. He doesn't want to enact measures that will benefit Americans of tommorow in the way that Reagan did before him - he wants to keep the wealth to himself in the here and now, rather than bequeath prosperity upon future generations...

[ 11-03-2003, 06:18 AM: Message edited by: Skunk ]

Timber Loftis 11-02-2003 02:36 AM

Let us see how long it takes for the administration to claim the credit, despite its "the President doesn't dictate economy" twattle in the past. ;)

Ronn_Bman 11-02-2003 08:10 AM

Quote:

Originally posted by Skunk:
As for whether the opinion is based on a personal disklike for Bush - refute that. You know, I absolutely *loathed* Reagan and Thatcher - but I give full credit for what they did for their respective economies. They took long term measures which served their respective countries very well.
Ah, but the question is, did you give full credit to those administrations initially, or only after the effects were proved?


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