Economy Grows Better Than Expected

AP MyWay ^ | Feb 25, 2005 | By JEANNINE AVERSA

[Lazamataz]

WASHINGTON (AP) - The economy grew at a solid 3.8 percent annual rate in the final quarter of 2004 - stronger than previously estimated- and an encouraging sign that the business expansion was firmly entrenched at the start of the new year.

The new reading on gross domestic product, released by the Commerce Department Friday, was better than the government's initial calculation made a month ago. That estimate showed the economy growing at a 3.1 percent pace.

The improvement reflected more robust spending by businesses on capital equipment and to build up inventories of goods. The trade deficit also was less of a drag on fourth-quarter growth than initially thought.

GDP, the broadest barometer of the country's economic health, measures the value of all goods and services produced within the United States.

The new fourth-quarter GDP figure also was better than the 3.5 percent growth rate that economists had forecast in advance of Friday's release by the Bureau of Labor Statistics.

Although economic growth in the final quarter of last year was a bit slower than the 4 percent pace measured in the third quarter, the performance was still solid.

[Grampa Dave]

Last Friday, I thought that we were back in the Midwest or Southwest with the wind, scary clouds and 3 way lightening strikes.

[RushCrush]

Your #2, ROTFLMAO! Good one!

[b4its2late]

Willie will still find some obscure article somewhere about how many jobs we are losing in the underwater basketweaving industry here in the US ....

[Penner]

Analysts are hoping that with the economy moving ahead solidly, companies will feel more inclined to step up hiring in the months ahead.

LMAO! The analysts have been wrong for 4 going on 5 years. Not gonna happen. We now import everything and our workforce must shrink instead of grow.

[unspun]

Watch the employment figures get revised upward, too.

[Lazamataz]

LMAO! The analysts have been wrong for 4 going on 5 years. Not gonna happen. We now import everything and our workforce must shrink instead of grow.

Damn.

And I was planning on getting a paycheck someday.

Now I won't.

[Michael.SF.]

Is that the last picture of Hunter Thompson?

[Harmless Teddy Bear]

We're all going to die!!!!!!!!!!!!

Oops

Sorry, wrong thread.

[SierraWasp]

I know!!! Like dejavu all over again, right???

[newzjunkey]

No! This cannot be! John F'n swore we had the worst economy since the Great Depression and W was the first president ever to lose a net number of jobs!

[OwenKellogg]

>>> LIFE IS WORTH LIVING!

No it ain't! They've outsourced suicide hotlines to Bangladesh! <<<

Funniest thing I've heard in 2005!

[RockinRye]

Bad news for the Democratic party!

[driftless]

I have a Dem co-worker, who actually said in 2000 after Bush was elected, that he wondered what would happen to the economy. Of course he was worried that the economy would go sour because only Dems know how to create wealth. I just looked at him in amazement. Other Dems have told me what a master magician of economics was Bill Clinton. I've asked them to tell me what it was exactly that Clinton did in the 90's to make the economy grow. They had absolutely no idea.

[Dont_Tread_On_Me_888]

As with most issues, there is far more complexity than some want to bother looking into.

Before anybody flames me or Willie Green . . .

For the record, Kerry and the RATs lied about the economy--nothing new there. Clinton lied in 1992 saying we were in a recession, the ignorant masses bought that, even though the recession ended 18 months before the 1992 election. So, we know the RATs lie about the economy and jobs. No need to beat that horse.

Also, great productivity is keeping the lid on hiring. This is not a bad thing--it is a good thing. It just means a lot of lazy bums need to get off their duff and get retrained in a higher tech position than some blue collar job they may hold. Higher than wanted unemployment is not necessarily a bad thing, it just means that those wanting to work better get a lot smarter than they currently are.

But before the party gets too out of control regarding the GDP figures, a few points need to be raised.

In the late 70s and early 80s, there was a growing economy but there was also rising inflation. Below is data from the BEA (GDP in chained 2000 dollars) that shows the economy in the 74-7 recession, then strong growth in the late 70s but problems brewing that pointed to a nasty double dip recession in the early 80s.

1974 -0.5

1975 -0.2

1976 5.3

1977 4.6

1978 5.6

1979 3.2

1980 -0.2

1981 2.5

1982 -1.9

You can have a growing economy and falling corporate profits, as we now have. Below is a graph of corporate profits that is not quite as rosy as the GDP figures:

SOURCE: Bureau of Economic Analysis

Even before the hurricanes hit, corporate profits were slowly decreasing. Companies are spendig more and more on security and benefits and this is eating into corporate profits, not a good sign for a continual robust economy. I work for a Dow JOnes 30 company that is giving full benefits to gay partners of employees--it is impossible to have great corporate profits with this kind of trashing of shareholder dollars. When corporate profits fall, hiring goes down and eventually the economy will suffer.

I would also point out that Bush's rising Marxist style spending on social welfare (both domestic and global) is setting the stage for a meltdown in the USA. No nation can both defend itself and be the daddy to the world while having social welfare spending increase at rates far above inflation like the USA is doing. We are cutting back on military programs because we "can't afford them" but social welfare is increasing, in some cases, 200% from the previous fiscal year, per Bush's proposals.

Yes, the RATs are liars, and yes, the GDP is good for now. But do not have a too extended party over these GDP figures. Inflation was recently running 3.25% (CPI) compared to 1% and change the previous year. Inflation is creeping up, Marxist spending is soaring, hoardes of illegals are invading us and NK and Iran are now nuclear or soon will be.

The point is this: The RATs are liars, the GDP is good currently, but there are other issues out there that are not as rosy re the economy's future, and we need to spend more time holding the Republicans accountable for national security weakness and for fiscal insantiy than cheerleading bits and pieces of good news just so we can throw mud in the face of the RAts.

It may be fun to laugh at the RATs, but good conservatives spend there valuable time raising hell with the Republicans about the grave dangers we face that they are not doing anything about.

Finally, the economy is not "controlled by Bush". Neither credit nor blame should be directed to presidents over the economy--Bush, Scumbag, Carter,Reagan or any president. The economy does what it does more on its own (the business cycle) and is determined by global demand and supply ( the U.S. is less than 25% of the world's economy)--the U.S. economy is controlled more by outside factors more than by Bush manning the control board pushing buttons. Reagan was the only president in recent times that did serious structural changes that affected the economy over a longer period of time.

Those who give credit or place blame on any president or political party for the good or the bad of a current state of the economy have no formal advanced education in economics.

Hold the Republicans accountable for national security (or lack of) and for their fiscal insanity--that is a far more valuable use of your time, and your bullets will be far more accurately targeted.

[Dont_Tread_On_Me_888]

Ping #34

[SierraWasp]

"Reagan was the only president in recent times that did serious structural changes that affected the economy over a longer period of time."

I was sure relieved to see you finally insert that crucial sentence in your rant, because, prior to finding said sentence you were losing me badly on a variety of points.

I do agree with you that conservatives should constantly hound the Repubs to get back to RWR's prime directives for political, diplomatic, strategic and economic success at all level of governmental, regulatory, national and international endeavor with economic freedom!!!

The way people vote with their dollars, or other currencies, is one of the most democratic processes in all of our various republics built on said democratic processes! But people also vote with their feet to feed their fortunes and thus... Freedom cannot be unlimited, especially in regard to illegal border crossings.

Mrs. Wasp has said for years that all those elderly and retired snowbirds who gather a places like SLAB CITY with their RV's, should organize into the order of the heavy brigade and mount 50 calibur maching guns on top of those massive motorhomes equiped with night vision and park those babies end-to-end along the border from National City to Brownsville TX!!!

As sickeningly liberal as the AARP has become, this would be an ideal time for them to do an about face and organize this and give these wildly patriotic senior Americans something to do that would automatically restore any lost dignity that any of them have suffered, due to becoming dependents, once again, but this time on their lame-assed government!!!

Now I want some feedback on this and I hope it's at least somewhat series. Although I should prolly know bedder!!!

[Dont_Tread_On_Me_888]

I appreciate your feedback.

My key point is that, although the GDP numbers are good and the RATs are liars, conservaives on this forum should be focusing on what is under Republican leadership control (e.g., national security, fiscal sanity) and not what is out of Republican leadership control (e.g., the economy).

[GVnana]

Hold the Republicans accountable for national security (or lack of) and for their fiscal insanity--that is a far more valuable use of your time

Bump to that. Most people don't know a thing about the business cycle and are prey to the snippets of good and/or bad economic news.

Sierra, I hate to tell you this, but 25 years ago, I proposed that we place the MX Missle onto specially outfitted Winnebagos and let the seniors roam with a purpose!

I wouldn't trust an AARP member with a gun.

[SierraWasp]

I hear ya girl, but them AARP staffers have utterly NO REDEEMING SOCIAL VALUE and I think it's long past due for the membership of that august body to mutiny and throw said sucky staff over the side, so to speak! I never said ta trust those pissants with guns!!!

I guess you did beat lil Mrs. Waspman with them mobile MX Missle launchers. But them's purdy touchy ta git under them I-10 overpasses ain't they? Oh! And another thang... I was watchin FRONTLINE on PBS this week and wunna them mosheenguns mounted on top of a HUMVEE got it's barrel smacked by like a furniture van's box goin the other way and REALLY GOT EVERYBODY ALL EXCITED!!!

[Amerigomag]

conservaives on this forum should ...

If this is a plea and especially it this is a complaint here's a point to consider.

In the past 4 years a great number of Republicans (not necessarily conservatives) have become members of this form. They are two things: 1) party loyalists and 2) politically pragmatists. They will support the party regardless of its political philosophy because they are certain no success can be based on rigid political principals. They are certain that you must win to effect the outcome and winning means compromising principals.

Good luck with your exhortation but realize that suggesting conservative values on FR may not be as popular as it once was if it runs contrary to the current Republican Party line.