The increase in GDP, reported by the government Thursday morning, was slightly better than expectations. Economists surveyed by Briefing.com had forecast 3.2% growth in gross domestic product, the broadest measure of the nation’s economic activity. The economy shrank at a 0.7% rate in the second quarter.
The positive GDP report is one more sign that the economy has likely pulled out of the deep recession that started in December 2007.
Does that mean the economy is completely fixed? Of course not. Unfortunately, employment growth tends to lag behind GDP, so there’s still going to be a lot of pain. But the fact that employment growth lags behind GDP also means that employment growth will come.
So for those who ask where the Democrats’ policies are getting us, the answer is to a growing economy.
So for those who ask where the Democrats’ policies are getting us, the answer is to a growing economy.
That is quite a leap.
Investment, consumption, and government spending. These are the things that will create growth in our economy. We have 1 out of 3. Any ideas what got us 3.5% GDP growth?
Ah, words of republican anguish at democratic success which benefits America.
Stay classy, guys.
Help me with the logic, lojasmo. There is quite a gap to fill in. Seriously.
In late 2007, the economy began to slow down. The housing market was oversaturated — so prices dropped, mortgage rates dropped, prices were reset at lower levels, and eventually people gradually started buying houses again. Credit was suspect — so banks redoubled, examined their lending practices and in some cases went out of business. This consolidations appears to be creating stronger banks, we'll see. Business all panicked - so they put the kabosh on hiring for a while, but it appears they are starting to see things moving slowly and will hire again soon. And we can't forget TARP and Stimulus, two programs that combined put nearly $2 trillion dollars of debt into the economy.
And the conclusion is that Democratic policies fixed things? Just saying it is quite a leap. lojasmo. Have you ever studied an economic cycle? Your cause and effect conclusions seem terribly simplified.
And let me remind you that Nancy Pelosi and Harry Reid were in their current positions prior to our economy stalling out. Did Democratic policies not exist until 2008?
For example, Barney Frank was chair of his powerful House Financial Services Committee before, during and after the financial meltdown. How could it be that only now are his policies suddenly coherent and effective?