Can They Connect The Dots?
CNN tells us about the effect of the “austerity budgeting”: GDP report: Economic growth revised sharply lower
NEW YORK (CNNMoney) — Budget cuts by state and local governments hurt the economy more than originally thought, according to a government release Friday.
Gross domestic product, the broadest measure of economic activity, was revised lower to an annual growth rate of 2.8% in the three months ending in December. The initial reading had been for a 3.2% growth rate in the period.
That’s a surprising dip, given that economists were expecting the rate to be revised upward to 3.3%.
Lower state and local government spending was the main drag, falling 2.4% during the quarter, compared to a 0.9% drop originally reported.
Since the business sector isn’t spending, but is sitting on trillions of dollars in cash, while the government is slashing its spending, welcome to the double dip.
The only entity that can spend in this situation is the Federal government, and they are getting ready to slash spending. The economic answers are clear, and we know that they work, but politics and the money class are stopping effective action from being taken.
7 comments
“… hurt the economy more than originally thought, …”
Thought by whom? They need better thinkers.
All is going according to plan, comrades. See, what we do is deflate the currency. Once the currency is deflated, people will be unable to pay their debts in the now-more-valuable currency, and we get to purchase their assets for pennies on the dollar. Then we re-inflate the currency, put them back to work at a lower real wage than they started out at, and make them buy back all their assets at ten times the prices we paid for them. And they do it, every time! Bwahhahaha!
– America’s Elite
It’s a pretty steep price to pay for innumerology.
They can’t read, write or think.
But can they ever “figure.”
Start a movement to get rid of the ignorants.
S
Since the business sector isn’t spending, but is sitting on trillions of dollars in cash, while the government is slashing its spending, welcome to the double dip.
The only entity that can spend in this situation is the Federal government, and they are getting ready to slash spending.
One of the most annoying things that the media does is to use generic “other” when they cover stories. In this case it is “economists”. Which economists? Who do they work for? Why would they believe what they said? Why should we believe anything that they say?
Why don’t they identify sources so readers know who has been right and who has been wrong?
Someone reported that economists at Goldman Sachs are issuing warning about the government budget slashing and the effect on the economy. When even Goldman Sachs thinks that austerity is a bad idea, why doesn’t anyone change their stance?
Faith-based economics is not going to get the country moving. Going back repeatedly to the same failed policies is not how you get the economy moving.
We need to get politicians into rehab and have them kick their Koch habit.
Why don’t they identify sources so readers know who has been right and who has been wrong?
now there’s a question with its own answer embedded in it.
Growth? I fear we are heading for double dip here in teh UK. Last quarter the ecomomy contracted by 0.6%
Face it, Hipparchia, the thing that the media hates most about the Web is that you can find previous statements they made and prove they are lying about what they said and when.
When the job losses really kick in, Jams, I don’t see any way of avoiding it. The demand will tank as people stop buying anything beyond the necessities, and the spiral will continue downward.