"The economy is contracting"

[thanatos144]

A contraction caused by less government spending, especially defense spending.

A worthwhile lesson for all of the conservatives around here who have insisted that government spending doesn't stimulate the economy,

and/or that smaller government will promote growth and jobs.

You want smaller government, an end to borrowing, and a balanced budget?

This is what you'll go through to get it. Fewer jobs and slower growth.

You are going to have to prove that retard.....Cause we are spending at record rates and have been for over four years.

 

[EdwardBaiamonte]

A worthwhile lesson for all of the conservatives around here who have insisted that government spending doesn't stimulate the economy,

too stupid but perfectly liberal!! More governemnt spending means less private spending so it is 100% impossible to get increased spending.

See why we are 100% positive a liberal will be slow, so very very slow!!

 

[Oldstyle]

Second thread on this..

government spending drop

Second one ignoring the root cause.

Austerity?

This is what you get.

Austerity? Obama just got $41 in tax increases for every $1 of cuts. How does THAT translate into "austerity"? You progressives are running this economy into the ground and then blaming it on something that never happened...austerity. Do you honestly believe what you're spouting here?

 

[EdwardBaiamonte]

Second thread on this..

government spending drop

Second one ignoring the root cause.

Austerity?

This is what you get.

austerity means you move toward living within your means not toward rasing the debt ceiling or eliminating it altogether as Barry wants to do!!!

What planet have you been on??

 

[NYcarbineer]

A contraction caused by less government spending, especially defense spending.

A worthwhile lesson for all of the conservatives around here who have insisted that government spending doesn't stimulate the economy,

and/or that smaller government will promote growth and jobs.

You want smaller government, an end to borrowing, and a balanced budget?

This is what you'll go through to get it. Fewer jobs and slower growth.

You are going to have to prove that retard.....Cause we are spending at record rates and have been for over four years.

All of the reports on this number are attributing it to less government spending. Government is a business. When it spends, it creates demand. Demand creates jobs. Demand creates economic growth.

A private school that spends a million dollars on school supplies affects the school supply business the same as does a public school that spends a million dollars on school supplies.

Is that hard for you to understand?

 

[EdwardBaiamonte]

Government is a business. When it spends, it creates demand.

perfectly stupid of course since when government spends it prohibits the private sector from spending so there can be no net gain in spending.

Slow much????????????????

 

[bitterlyclingin]

[A 3.1 percent, just in time for for the election, expansion rate shrinks to a negative .1 per cent in the period immediately following. How can that be? Of course no one in the media will ask that question. Too busy polishing their post Barry's inaugural erections, mebbe?]

"Remember the cheery pre-election economic news?

That was then, this is now.

From the Bureau of Economic Analysis, the third quarter boom-boom days have turned into the fourth quarter bust:


Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 0.1 percent in the fourth quarter of 2012 (that is, from the third quarter to the fourth quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.1 percent.

The Bureau emphasized that the fourth-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see the box on page 4 and the “Comparisons of Revisions to GDP” on page 5). The “second” estimate for the fourth quarter, based on more complete data, will be released on February 28, 2013.

The decrease in real GDP in the fourth quarter primarily reflected negative contributions from private inventory investment, federal government spending, and exports that were partly offset by positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.

To all the realists out there, how do we go from 3.1% real GDP growth in the third quarter to 0.1% real GDP decline in the fourth quarter? How do things change so quickly?

Don’t go all conspiracy theory on me. Assuming the numbers are real, are people just hunkering down for term 2?

That would be consistent with my theory back in October that hope that Romney might win was lifting the nation’s economic mood, Unexpected jump in consumer sentiment coincides with polls showing Obama could lose."

» Hunkering down for Term 2, GDP Edition - Le·gal In·sur·rec·tion

[If pictures are said to be worth a thousand words, I wonder what the electorate looks like? What does a huddled mass yearning for a benevolent master look like? The people up against the fence when Heinrich was filmed touring the camp?]

White House Blames Republicans For Today?s Awful GDP Number? | Weasel Zippers

 

[Skull Pilot]

says Obabble...

GDP Shows Surprise Drop for U.S. in Fourth Quarter

[youtube]srw3RdiIlrQ[/youtube]

 

[Oddball]

Government is a business. When it spends, it creates demand. Demand creates jobs. Demand creates economic growth.

Is that hard for you to understand?

That's stupid by even your tremendously low standards....We'll need a backhoe to set the bar any lower.

 

[EdwardBaiamonte]

Government is a business. When it spends, it creates demand. Demand creates jobs. Demand creates economic growth.

Is that hard for you to understand?

That's stupid be even your tremendously low standards....We'll need a backhoe to set the bar any lower.

I'm sure the liberal is reading up and will have a great answer any time now!!

 

[Rozman]

Shocking GDP drop during the normally rising Holiday Shopping Season, Federal Reserve Quantitative Easing & Presidential Election Spending. This is a huge economic problem.

Obama and the democrat party think they are doing a great job and their aren't any problems.

 

[Politico]

Surprise? This was no surprise.

 

[KissMy]

I don't know about the fly over states but the San Francsico Bay Area has recovered and is beginning to boom. Home values have risen over 5% during the last five months and sales of existing homes are hot - homes are selling in days instead of months and getting multiple offers; employment is up from the City south to Silicon Valley and even the Herring have returned to SF Bay.

Home prices are rising because mortgage resets that caused foreclosures plummeted. Not because of a economic boom.

 

[Avorysuds]

Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.

This is basically the result of austerity.

We have a consumer based economy and the government is the biggest consumer.

I don't really see what the problem is for conservatives.

This is the RESULT they want.

NOW THE US IS DOING AUSTERITY!!! HOOOOOOOOOOOLLLLY FUCK PEOPLE, DO YOU MAKE THIS SHIT UP AS YOU GO ALONG OR WHAT?

Seriously, if the Government hired every single person yes, the economy would instantly boom, we all get that…. But, at some point and this “point” is not so far off in the future deficits will rise due to massive mal investment, inflation will climb and the economy will crash… Now, what we are seeing is a smaller version of this same, very basic and very simple concept to understand.

The economy was growing so incredibly slowly and usually only where Government was dumping cash, like I dono, the fed has been doing at 40 BILLION A FUCKING MONTH “ INDEFINABLY.” The rest of the economy is the same story as it was 4 years ago, in fact the news is the same. It goes like this, “the economy is recovering very very slowly, but it is recovering.” And here’s my favorite, “Economist think we have found a bottom.”

Just like FDR we will see a slowly growing economy the entire fucking time the same old failed ass big Government policies are pushed on people and markets.

 

[Oldstyle]

I'm sorry to be the person that points out the obvious here but very time that the Fed prints more dollars it makes the dollar in your pocket worth less. Add to that the new taxes that were just levied against those who DO pay taxes and you've got a one...two...punch to our economy that's going to take it's toll. In the meantime Government continues to waste money like it always has...a large portion of which is money that we've had to borrow and on which we will have to pay an ever increasing amount of interest on. That isn't sustainable.

How about we do the intelligent thing and get our government spending under control RIGHT NOW before the whole house of cards collapses and takes the world economy down with it? Or...we can lie to ourselves and pretend that more wasteful spending is the answer.

 

[EdwardBaiamonte]

I'm sorry to be the person that points out the obvious here but very time that the Fed prints more dollars it makes the dollar in your pocket worth less

yes exactly, and this is not to mention that when the Fed holds interst rates so low banks have no incentive to lend!!

 

[william the wie]

Wait a second Obamacare when it kicks in in 11 months is supposed to reduce medical expenditures, which is also medical service income to somebody. So it should also reduce consumption and employment well ahead of implementation not only in the medical field but in all areas of the economy where labor costs are likely to increase which is everywhere. Why are such adjustments not mentioned?

Rail and to a lesser degree water traffic has been signaling a recession coming for quite a while due to the drought. Why is this not mentioned ?

Tax flight from CA and NY regularly makes the news and this goes back to pre-meltdown days. Why is this not mentioned?

I find the answer given a bit too pat.

 

[Reality91]

You have to look at reality of what caused this very mild contraction.

The spending cuts the government made where to the military, more expected within February with the automatic sequestration. The deal that was reached in the debt ceiling level meeting on Capitol hill in 2011

Since I've been reading this nonsense on this site. The government hasn't been hiring people left and right. I'd love to post some links but the site doesn't allow me.

Federal employment has fallen in the past few years and this is having an effect on the economy since there are less people employed and less money flowing through the economy. That is one of the reasons for the contraction. The government is part of the economy whether we like it or not. It puts money into certain markets and businesses that would otherwise not exist if they didn't have the business from the government. If you find this hard to believe then please grab an economics text book or enroll into an economics class to help you understand some basic tenets of reality.

The other reason for the contraction is mainly the hurricane that hit the East Coast.

 

[Oddball]

Maybe gubmint needs to go around and break some more windows.

 

[Oldstyle]

You have to look at reality of what caused this very mild contraction.

The spending cuts the government made where to the military, more expected within February with the automatic sequestration. The deal that was reached in the debt ceiling level meeting on Capitol hill in 2011

Since I've been reading this nonsense on this site. The government hasn't been hiring people left and right. I'd love to post some links but the site doesn't allow me.

Federal employment has fallen in the past few years and this is having an effect on the economy since there are less people employed and less money flowing through the economy. That is one of the reasons for the contraction. The government is part of the economy whether we like it or not. It puts money into certain markets and businesses that would otherwise not exist if they didn't have the business from the government. If you find this hard to believe then please grab an economics text book or enroll into an economics class to help you understand some basic tenets of reality.

The other reason for the contraction is mainly the hurricane that hit the East Coast.

I believe if you go look at the numbers you'll find that Federal hiring hasn't decreased at all. It's State and Local governments that are shrinking because they don't have the ability to print money to pay their bills like the Feds do and things like pension deals with government employee unions are literally bankrupting them.

I actually took economics in college and learned that for the government to put money into markets and businesses they first have to TAKE that money from individuals and businesses. That happens either when taxes are raised...or when the Fed prints more dollars and devalues what each of us has in our wallet. I'm afraid it's you that's a little foggy on the basic tenets of economic reality.