Plunge in Investment, Production, and Consumption Requires Smart Reopening, Not More ‘Stimulus’

The Daily Signal ^ | July 31, 2020 | Joel Griffith

[Tolerance Sucks Rocks]

This week’s gross domestic product report painted a stark picture; namely, a historic plunge in the production of goods, provision of services, and private investment.

The nation’s economy shrank at a 32.9% annualized rate. That marks an actual decline of 9.5% from earlier this year.

Meanwhile, massive government transfer payments funded by borrowing and printing of money caused disposable personal income to soar at a 42.1% annual clip despite the loss of more than 24 million jobs accompanying this economic contraction.

The data bear out the everyday experience of millions of Americans. Government-mandated closures and people responding to what they heard from some public health officials shriveled economic output over the past six months.

Personal consumption dropped at a 34.6% annualized rate. In fact, the plunge in consumption exceeded the record rise in personal income.

Durable goods sales were down only slightly, by 1.4% annualized, thanks to a slight increase in sales of vehicles and recreational equipment. However, sales of household furnishings and equipment decreased modestly. Non-durable goods (items such as shoes, clothing, and groceries) dropped by 15.9% annualized.

Elsewhere, the situation proved far more dire. Consumption of personal services fell off a cliff, down 43.5% annualized.

Zooming out year over year, we get a clearer picture of the damage. Overall household consumption of services declined 18%. Spending on food services and accommodations (bars, restaurants, movie theaters, etc.) fell 40%.

Jarringly, spending on health care services dropped by 24.2% compared with last year as people postponed elective procedures. In some instances, treatment of serious health conditions is being delayed.

Even the surge in personal income—the bright spot in the report—is problematic. Instead of representing compensation for productive enterprise, this reflects federal stimulus checks combined with enhanced unemployment benefits of $600 weekly.

[Tolerance Sucks Rocks]

Combined General and Coronvirus PING!

[Buckeye McFrog]

Smart reopening requires a one-way ticket to Mars for Tony Fauci so that he’ll no longer be able to sabotage it by talking to the media.

[GrandJediMasterYoda]

The Marxists want it because it is killing peoples desire to go back to work and it’s financing the BLM/Antifa terrorists.

[AAABEST]

The stimulus money was a huge mistake. I can't get anyone to do any fkn work for me. My buddy has a Boar's Heads distributorship and told me alot of the grocery store shortages we're seeing are from workers staying home collecting COVID welfare.

I also found out why the testing lines were so YOOGE in my area... because if the MFers work for the government or certain companies, they get two weeks paid vacation every time they test positive.

It pays to be COVID positive.

[familyop]

Quite a few large corporations are taking our President’s lead to stop the spread of SARS-COV-2, until we have a vaccine. Employers are working to minimize absenteeism and disabilities (including young people) while getting the economy going strong as soon as possible.

Masks Equal Money: The NAM Asks Americans to Wear Face Coverings in Public
https://www.nam.org/masks-equal-money-the-nam-asks-americans-to-wear-face-coverings-in-public-9914/

https://www.nam.org/

There’s also the new program to prepare workers for new jobs—far better jobs!

https://findsomethingnew.org/about/
(see National Association of Manufacturers in the list of supporters along with Walmart, IBM, Home Depot, Apple and others, including The White House pledge to America’s Workers!)

https://findsomethingnew.org/

Here’s the truly good news. Don’t miss this!

New Career Opportunities Await in Post-Virus Economy
https://www.whitehouse.gov/westwingreads/

[Tilted Irish Kilt]

GrandJediMasterYoda :" The Marxists want it because it is killing peoples desire to go back to work
and it’s financing the BLM/Antifa terrorists."

What do you mean 'terrorists' ?
In the hood, they are regarded as businessmen and 'entrepreneurs' . /s

"Shakedown: BLM Demands Cut Of Louisville Business Profits For Protection"
Brietbart ^ | 8-3-2020 | Robert Kraychik

http://www.freerepublic.com/focus/f-news/3870992/posts

[packrat35]

My company just stopped that 2 week free money scam for testing. Now if you get tested and do NOT have the Kung Flu, you don’t get paid.

That stopped that crap dead in its tracks.

[Hardastarboard]

I’m seeing a lot of now hiring signs in stores near me I suspect for the same reason.

[blueplum]

thanks for the ping :)

The numbers of educators and govt employees participating (and being arrested) at various demonstrations around the country pretty much prove that neither are afraid of being in large groups.

Open the schools, end unemployment enhancements for anyone under 35, and let’s get back to work before the winter wave hits and locks us all down again.

[aquila48]

“Plunge in Investment, Production, and Consumption Requires Smart Reopening, Not More ‘Stimulus’”

Yep. The only thing these massive stimuli are going to stimulate is more “moral hazards”, otherwise known as irresponsible behavior and an entitlement mindset.