Posted on 01/27/2022 9:40:48 AM PST by semimojo
The U.S. economy grew at a much better-than-expected pace to end 2021 from sizeable boosts in inventories and consumer spending, and despite signs that the acceleration likely tailed off toward the end of the year.
Gross domestic product, the sum of all goods and services produced during the October-through-December period, increased at a 6.9% annualized pace, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been looking for a gain of 5.5%...
The quarter brought an end to a 2021 that saw a 5.7% increase in annualized GDP, the strongest pace since 1984 as the U.S. tried to pull away from the unprecedented drop in activity during the early days of the coronavirus pandemic.
(Excerpt) Read more at cnbc.com ...
SO how much of the increase is government spending ?
C + I + G + NX = GDP
Consumer Spending +
Business Investment +
Government Spending +
Net EXports
6.9% growth just about makes up for 7% inflation. Oh and btw, that gdp number includes the ballooning of federal spending.
There is really only 2-3 weeks of Omicron in that quarter - plus you had Christmas in there too.
I thought 2% growth was the new normal.
“GDP calculations include government spending.”
There is something very wrong with counting the spending of borrowed money as economic growth.
It’s adjusted for inflation. All the GDP reports are adjusted for inflation
From the press release. It’s real GDP. adjusted.
Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.3 percent.
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (refer to “Source Data for the Advance Estimate” on page 4). The “second” estimate for the fourth quarter, based on more complete data, will be released on February 24, 2022
Thank you. I even clicked and read the article (I know. Weird, right?) and never saw the word "Real". I didn't think to click on the press release link.
they probably don’t state “real” in the drive-by media stories because it’s a given for every report.
All the government spending is counted as part of GDP.
They have to go with what they know. Just like the Soviet Politburo. Glowing agricultural output figures while people were starving to death.
I know a couple who spent a whole year doing drugs and going to casinos financed by Covid relief dollars. They ate pretty well with SNAP dollars. They didn’t work because unemployment insurance. Everything they bought during that time was counted in the GDP. Come to think of it, all the smash and grab loot and all the shoplifting is counted. I had two windows smashed in my car, the replacement is counted. All the stuff people have to buy to replace the stuff stolen by homeless people is counted. All the train loot and stolen Amazon packages are counted. Boom Times!!!
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