U.S. Economy Grew at a 2% Rate in the Third Quarter

[Valienteman]

Source: New York Times

October 29, 2010

The United States economy grew at an annual rate of 2 percent in the third quarter, the Commerce Department reported Friday, as it struggles to gain any momentum for a sustained recovery.

That estimate matched the consensus forecasts for the gross domestic product, and is a slight uptick from the second quarter.

Though the recovery officially began in June 2009, growth since has been tepid, at best. The economy expanded at a 1.7 percent pace in the second quarter, down sharply from 3.7 percent in the first.

Demand, seen as crucial to re-igniting the American economy, appeared flaccid in the third quarter, although there were, here and there, hints of increased consumer spending. Income growth adjusted for inflation and taxes slowed noticeably, rising 0.5 percent in the July-September period after increasing 4.4 percent in the second quarter. And at the other end, prices excluding food and energy increased 0.6 percent, compared with 0.8 percent in the second quarter.

Read more: http://www.nytimes.com/2010/10/30/business/economy/30econ.html?_r=1&hp

[ixion]

1. growth, when you're cooking the books, really isn't growth at all

n/t

[nyy1998]

5. Any proof that the Commerce Department is cooking their books?

[ixion]

6. ...

:eyes:

Yeah, there's all sorts of proof, but I'm not going to do your research for you. We posted numerous articles in the Bush era about changes to figuring this number, among other things, like when they stopped publishing the M3. Guess what? They're STILL NOT publishing the M3. These policies are still in effect, because I've not seen stories on their revisions. So the assumption that was valid under Bush is just as valid under Obama.

[nyy1998]

8. Publishing the M3 would be nice, but I don't see it's relevance, and you're

just placing blame by association. Give me proof that OBAMA's Commerce Department is cooking the books.

[Bette Noir]

2. As far as I'm concerned, the recession will be over

when everyone I know who wants to work has a full-time job that he/she likes.

[roseBudd]

7. Unfortunately our economy is dependent on consumer spending for 70% of GDP

Our assets (think retirement & housing equity) took a huge hit

It is reported that housing lost $6 trillion in equity & that it will take 13-20 years to recoup.

Americans are predicatbly saving more to recoup equity. It's called the wealth effect. Personal savings rates have gone from 2% pre recession to almost 7% in the 3rd quarter of 2010. Good for us, but bad for our economy.

[KillCapitalism]

3. It's a different story each day.

Monday: The economy sucks.
Tuesday: The economy is booming.
Wednesday: The economy sucks.
Thursday: The economy is booming.
Friday: The economy sucks.

[FailureToCommunicate]

4. So, is the economy half full or half empty? Luckily Wall Street is

back: obscene executive bonuses just in time for Holidays. And they'll SPEND some of that on an obscenely expensive toy or two, and that will trickle money down to the rest of us, right?