Economy slumping faster than expected, with fourth-quarter GDP revised down

[progree]

Source: Reuters

The U.S. economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration's 3 percent annual target, and corporate profits failed to rise for the first time in more than two years.

Gross domestic product increased at a 2.2 percent annualized rate, the Commerce Department said on Thursday in its third reading of fourth-quarter GDP growth. That was down from the 2.6 percent pace estimated in February.

The economy grew at a 3.4 percent pace in the third quarter. The expansion will be the longest on record in July.

For all of 2018, the economy grew 2.9 percent as previously reported, despite the White House's fiscal stimulus of $1.5 trillion in tax cuts and more government spending. Growth last year was the strongest since 2015 and was an acceleration from the 2.2 percent logged in 2017.

Read more: https://www.nbcnews.com/business/economy/economy-slumping-faster-expected-fourth-quarter-gdp-revised-down-n988331

---

Although the link is to NBC News, the article starts out with "By Reuters".

The Commerce Department release: https://www.bea.gov/news/2019/gross-domestic-product-4th-quarter-and-annual-2018-third-estimate-corporate-profits-4th

Caligula will probably be touting the Q4 2018 over Q4 2017 increase of 3.0% (revised down from the last report's 3.1% number), but, well, that's not the same as the official 2018 growth number of 2.9%.

per the article, on the campaign trail, Trump boasted he could boost annual GDP growth to 4 percent ...

But we're getting a new healthcare plan soon soon, so that will rev GDP way up as we become more healthy and productive and have more money left over to spend on other things and yada {sarcasm thingy}

Economists polled by Reuter were expecting a 2.4% Q4 number, so the 2.2% actual came in somewhat below expectations.

Graph from the bea.gov link above

[watoos]

1. So Trump gave rich people and corporations 1.5 trillion dollars,

and also gave away billions of dollars to people like soy bean farmers, yet our GDP is dropping. Hmm.
What does that mean? I read where 25% of GDP comes from consumer spending, can someone plug in those stats? The market should be booming, it was artificially stimulated by Trump, we had a record deficit last fiscal year. Only 25% of the working class is invested in the stock market, hmm. The CBO only projects 1.9% growth for this year. I guess those tax breaks aren't going to pay for themselves after all. Back in the roaring 20's Republican presidents did the same thing that Trump did. Back then they called it the horse and sparrow plan. Feed more oats to the horses and the sparrows will get more seed from their shit.

By the bye, anyone talking about income inequality?

[Farmer-Rick]

4. Should of called it the eat sh*t America plan

By doing away with the personal exemption Trump effectively took over $4,000.00 from every middle class tax payer and gave it to the likes of the Koch Brothers, Bill Gates and Zuckerberg. So, it didn't come out of the air or merely inflate our national debt. It came out of yours and my pockets.

That's about 40 million people paying off about 100,000 fantastically greedy old white guys to the tune of about $160 Billion; or $1.5 million to each and every greedy old white guy to horde; paid for by you and me. What could you do with that $1.5 million besides horde it?

[Bengus81]

6. That huge "smoke and mirrors" stock market climb of Trumps hit the wall 14 months ago...........

And has never gone anywhere since--basically flat lined. It was NEVER based on real economics creating small incremental DOW increases year over year like Obama did starting in March 2009. Nope,it was all Trickle down based BS and now those with 401's and IRA's for retirement are paying the price.

[Hortensis]

2. Unfortunately, good.

2018 shows up the Republican claims for the Tax Heist as the lies they are.

Our taxpayer dollars "stimulating" the very wealthy brought pathetic return and cost us dreadfully. 2019 is also the second year we the people make our annual transfer payment to the wealthy on the $1.6 trillion "debt" manufactured by the Republican controlled congress.

[Yavin4]

3. Wages. Wages. Motherf**king Wages.

We've relied on cheap credit to boost consumption, but people are at their limits. Without a significant rise in wages, consumption slows down.

[Bengus81]

5. Gosh...you mean huge tax cuts for the rich doesn't work?!?!?

I'm like sooooo fucking shocked. Pfffttt.....Idiot Kansas Gov Brokeback gave his Corporate buddies a ZERO % tax rate in Kansas for about four years (nearly BK the State) and it never created a job anywhere that wouldn't have happened anyway.

But...Republicans always seem to get yet another tinkle down tax cut passed as they've been doing since the Saint Ronnie days.

[lagomorph777]

7. Just because it's failed a dozen times since Saint Ronnie tried it,

doesn't mean we shouldn't try it again! I think there are still a few billionaire dicks that need stimulating.

[kimbutgar]

8. Saw a show on the AHC channel and all the policies that Hoover did after the stock market crash

Are the same the orange maggot are doing now. tariffs, tax cuts, artificially keeping rates low lead to the biggest crash in 1932 just in time for Hoover to lose in a landslide.

[Bengus81]

10. And the ONLY thing that saves Republicans azzzz after another round of trickle down..........

Is all the safe guards and fail safes that FDR put in place after the Hoover disaster. If it hadn't happened the US would have seen a full blown second Great Depression starting in late 2008.

[Hugin]

9. Trump slump.

'nuff said.

[Canoe52]

11. I'm reading your post, see mention of Caligula, scratches my head...

then I get it...lol. I guess I’m running slow this morning.

[progree]

19. I haven't called him Caligula for awhile, but now that he's pushing hard again to repeal the ACA

and replace it with some junk insurance, I'm back to thinking of him as Caligula

[Canoe52]

20. An excellent choice!

[mahatmakanejeeves]

12. Thanks for the link to the Commerce Department.

Trump has the same Cisco phone I do:

GDP revised downward for 2018 as U.S. economy shows more signs of slowing

Link to tweet

[BumRushDaShow]

15. "Trump has the same Cisco phone I do"

I used to have one at work, although not quite that model but close (looked similar to the one on the left). But it was still a Cisco model IP (network) phone that plugged into the laptop dock, which plugged into network wall jack! I don't miss it one bit.

[mahatmakanejeeves]

16. That's the one. I haven't figured out how to use all its functions.

And good afternoon.

We're celebrating opening day by having hot dogs for lunch. I've already had (burp) two.

[BumRushDaShow]

17. I limited my dealing with it

to periodically changing my "Out of Office" message (made one standard greeting and kept it for the duration) and making sure I remembered where the mute button was so my expletives were not heard.

Great weather for opening day here as well (with the $330 million wunderkind that we now have).

[mahatmakanejeeves]

18. Cold here this morning, mid-30s.

Supposed to be about 50 degrees about the time the game starts.

$330 million -- SMH.

[SWBTATTReg]

13. The rump effect is kicking in. The 'rump effect' is basically the economic stimulus of rump...

not knowing one thing about anything kicking in finally, other that cheating on his taxes and ripping off people from their hard earned money. The 2017 tax cut and jobs bill was a disaster and wasn't needed. All it did was slow the velocity of money down (over 4 trillion worth) by putting this money outside the economy into the pockets of already wealthy billionaires and millionaires who didn't need the tax cuts.

Some stimulus pkg., eh (2017 TCJ bill). And they repugs are proposing believe it or not, another tax cut!!
Remember rump throwing around a 10% tax cut bill last Nov. 2018 (trying to influence the elections), he blatantly said that these new tax cuts would be in place by the end of the year (2018) or something ridiculous like that.

[BumRushDaShow]

14. "despite the White House's fiscal stimulus"

There was very little if any "stimulus" for the average person.