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GDP revised downward

Posted by B. Daniel Blatt at 12:00 pm - August 27, 2010.
Filed under: Economy

Normally, “when an economy emerges from a recession,” Jim Geraghty reminds us, “it takes off, making up for lost time. For example, the growth rate exceeded 7 percent for five consecutive quarters in the early 1980s.”  Well, we learn that at least according to the AP, ““The economy barely has a pulse“:

The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

(H/t Mark Hemingway @ The Washington Examiner.)

UPDATE:  By contrast, Germany’s economy is “sizzling.

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28 Comments

  1. Can we finally throw Keynesian economic theory to the dust bin once and for all?

    Comment by Sonicfrog — August 27, 2010 @ 12:31 pm - August 27, 2010

  2. Well, once again we’re both blogging to the beat of the same drummer. I just linked to you.

    Comment by Sonicfrog — August 27, 2010 @ 12:42 pm - August 27, 2010

  3. Hope and Change!

    I hope I have change left in my pockets.

    Comment by The_Livewire — August 27, 2010 @ 1:17 pm - August 27, 2010

  4. The liberal media is touting this adjustment to 1.6 of GDP as a milestone in the list of Obama’s achievements…. The local radio down here in South Florida is heralding today’s DOW as proof of the excitement being felt on Wall Street because of the great job Obama has done……. I can’t stand when they out right lie to me. If they keep it up much longer I just might end up taking a hammer to my car radio.

    Comment by Spartann — August 27, 2010 @ 1:57 pm - August 27, 2010

  5. Wasn’t the Obama Regime lecturing Germany a few months ago that their fiscal austerity was bad for the global economy?

    Why Yes, He Was:

    Paul Volcker, former chairman of the US Federal Reserve and an economic adviser to US President Barack Obama, also argued recently that Europe should focus on encouraging growth rather than cutting spending. Referring specifically to France and Germany, he said in an interview with Bloomberg radio earlier this month that “it would help a lot if the rest of Europe, the strong part of Europe … if they have more growth, that will help these countries on the periphery.”

    Germany, however, is taking the opposite approach. Rather than take on even more debt to ramp up the economy, Chancellor Angela Merkel wants to set an example for Europe on how to cut spending and reduce budget deficits.

    Comment by V the K — August 27, 2010 @ 2:37 pm - August 27, 2010

  6. The Obama Economic Policies are not intended to provide a prosperous economy for all Americans. The goal of the Obama Administration, in Teve Torbes words, is to “change America from a greedy nation to a quiet socialist nation that knows its place in the world.”

    Comment by V the K — August 27, 2010 @ 2:47 pm - August 27, 2010

  7. Obama has spent more (borrowed cash) on the “Stimulus” in just 18 months than Bush-43 AND Obama spent on both the Iraq and Afghanistan in nine-years…

    And most of the actual dollars spent on Iraq and Afghanistan were actually expended here inside the US economy on goods, services, materiel and military payrolls. Is the soldier at Fort Bragg’s pay less “moral” or “stimulating” than the cop or teacher’s pay in Chicago?

    Comment by Ted B. — August 27, 2010 @ 4:31 pm - August 27, 2010

  8. It always amazes me that the Republicans (who seem to me to represent only large corporate interests) can convince most Americans that they will represent their interests better than the Democrats (who are far from perfect I would agree). Was it not the Bush admin that got the US into two costly/endless wars and whose policies led to the mortgage (and hence economic) meltdown? The Republicans also skilfully use divisive wedge issues (which actually don’t affect peoples’ day-to-day lives) and scare tactics.

    Comment by steve — August 27, 2010 @ 4:47 pm - August 27, 2010

  9. I know educating steve is useless, but enlightening others to the facts may be helpful.

    1. Both of Bush’s combined wars over right years cost less than the Obama Stimulus and bailouts did in two.

    2. Endless War? Weren’t the Obamaniacs trumpeting the withdrawal of troops from Iraq this week? And wasn’t Afghanistan the “good war” that progressives claimed to have supported?

    3. Wasn’t the proximate cause of the Great Recession a massively over-leveraged mortgage market, brought about by progressive policies of lowering mortgage standards so politically favored but economically disadvantaged groups could move into homes they could not otherwise afford? Was it not also triggered by a massive run-up in petroleum prices, facilitated by Democrat opposition to domestic oil production which left the US dependent on foreign oil and vulnerable to fluctuations in the Global market?

    Since Bush tried thirteen times to reform the government mortgage system and pushed for domestic exploration, but was blocked by Democrats in both endeavors, who is really responsible?

    Comment by V the K — August 27, 2010 @ 5:00 pm - August 27, 2010

  10. Rubio is now ahead by 10 pts in FLA.
    November 2….keep steve and other socialists away from tall heights and bridges. hehe

    Comment by Gene in Pennsylvania — August 27, 2010 @ 5:40 pm - August 27, 2010

  11. Have you seen how angry everyone over at MSNBC and CNN have been the last week or so. I think they see the libeals socialist model imploding. And people are starting to see the possibility of a 60 seat loss in the House and a possible 10 seat loss in the Senate for the ruling liberals Democrats. The leftist media now is all with one chorus is starting to call the opposition racists and bigots. That’s where they are. Losers with one stone left to throw.

    Comment by Gene in Pennsylvania — August 27, 2010 @ 5:45 pm - August 27, 2010

  12. I can’t stand when they out right lie to me.

    That’s what 610 WIOD is for.

    Have you seen how angry everyone over at MSNBC and CNN have been the last week or so.

    Didja see the story about Ed “The Chins” Schultz’s meltdown?

    http://newsbusters.org/blogs/lachlan-markay/2010/08/26/ed-schultz-threatens-torch-30-rock-then-breaks-down-tears

    Comment by ThatGayConservative — August 27, 2010 @ 6:43 pm - August 27, 2010

  13. Say, where’s that dingleberry that keeps recycling that “long, long decade”, or whatever, nonsense?

    Comment by ThatGayConservative — August 27, 2010 @ 6:45 pm - August 27, 2010

  14. Say, where’s that dingleberry that keeps recycling that “long, long decade”, or whatever, nonsense?

    buckeyenutlover? He has either changed his nick to “steve,” or he’s been conspicuously avoiding this blog.

    Comment by V the K — August 27, 2010 @ 7:05 pm - August 27, 2010

  15. Obamanomics kills the economy. Call Doctor Kevorkian.

    Comment by Sebastian Shaw — August 27, 2010 @ 8:47 pm - August 27, 2010

  16. Obamanomics is Obamacide.

    Comment by Sebastian Shaw — August 27, 2010 @ 8:48 pm - August 27, 2010

  17. Gene, the MSM Obama zombies are waking up to the fact a great political disaster is coming to the Democrats in November. Any fool could have seen this coming while the Obama Democrats gleefully ignored their constituents, the Tea Party, & have severely miscalculated. It’s too late to save the Obama Democrat lemmings since they went off the cliff when they voted for ObamaCare.

    Comment by Sebastian Shaw — August 27, 2010 @ 8:51 pm - August 27, 2010

  18. Can we finally throw Keynesian economic theory to the dust bin once and for all?

    sf, we agree on that!

    Now what should replace it? I suggest Austrian theory, also known as common sense, and presented in layman’s terms here: http://www.amazon.com/How-Economy-Grows-Why-Crashes/dp/047052670X

    Comment by ILoveCapitalism — August 27, 2010 @ 8:52 pm - August 27, 2010

  19. P.S. Germany’s austerity program took that country’s economy in the right direction, because government is a drag on the economy, not an aid to it. (Other than government’s most crucial functions of police, courts, and military to protect life, liberty and property. We need that from government. Anything beyond that, is where the drag begins.)

    Germany’s government is still proportionally larger than government in the U.S. Not coincidentally, Germany still has a lower overeall living standard than the U.S.

    But Germany’s decision to go in a direction of governmental austerity / trimming government was the right one, hence Germany’s economy will continue to go in a direction of growth. While Obama’s decision to massively grow U.S. government was and is the wrong one; hence U.S. growth, despite the valiant efforts of the American people, will continue to drag.

    Comment by ILoveCapitalism — August 27, 2010 @ 8:58 pm - August 27, 2010

  20. buckeyenutlover? He has either changed his nick to “steve,”

    I expect so.

    Comment by ILoveCapitalism — August 27, 2010 @ 9:01 pm - August 27, 2010

  21. WANTED: GOP CANDIDATE

    Must have no sense of shame

    Must have no actual scruples

    Must be willfully ignorant of history

    Must have a short memory

    Sociopath preferred, but will train

    Must take orders well

    Must like Jesus, but not all of his hippie stuff

    Prefer white, but will train

    No candidate will be considered that has perspective, reason or accountability

    Comment by steve — August 27, 2010 @ 10:08 pm - August 27, 2010

  22. Gonna spam every thread with your cute little cut-n-paste witicism, steve?

    Comment by AF_Vet — August 27, 2010 @ 11:46 pm - August 27, 2010

  23. steve is a bot, he has not written a single original idea since he started trolling here.

    And remember, steve does not want brown people to be free of dictators. His hatred of Bush told him so.

    Comment by JSF — August 28, 2010 @ 4:24 am - August 28, 2010

  24. OK – we now know that steve, like most libs, is ignorant (at best) or just plain stupid.

    Large corporate interests? GOP? Really? I just read that some analyst suspects that Citibank (recipient of TARP bailout) is cooking the books. Who was Citi’s biggest recipient of campaign money? BHO. Who’s the current mega-recipient of Citi largesse? Kirsten Gillibrand (Dem – NY). How about Goldman-Sachs? Oh – dems.

    The only reason corporations donate to politicians are: protection and rent-seeking. If the government didn’t hold life and death power over businesses then businesses wouldn’t have a lot of motivation to dabble in politics.

    If you happen to work in an industry that exists despite government effort to kill it (energy?) then you better be happy that the company has managed to protect your job.

    Comment by SoCalRobert — August 28, 2010 @ 2:13 pm - August 28, 2010

  25. #1: Sonic – I think it’s safe to say that Keynesian has proven worse than worthless in our current situation. I still think there’s something to be said Keynesian stimulus in some conditions provided that spending is on productive assets (infrastructure and the like) and stimulus is withdrawn as conditions improve.

    The problem for the last couple of decades is that the stimulus is never withdrawn: the government keeps spending no matter what (not to mention the unfunded liabilities they keep piling on).

    Comment by SoCalRobert — August 28, 2010 @ 2:20 pm - August 28, 2010

  26. SoCal – There are many. many problems with stimulus/government spending. 1). The government is using dollars that have been confiscated from the private sector(read: consumer). That means that the consumer can’t spend his/her own money on things they want or need – in essence THE ECONOMY and GDP. 2). Stimulus dollars are ALWAYS spent with a political motivation. The Obama regime is one of the worst in modern history in having stimulus dollars spent on purely pollitical entities. Hell, just look at his stimulus plan, most of the dollars are in the back end just in time for his re-election run. Greasing the demo corrupt machine.

    The ONLY way to get out of a recession is consumer/corporate spending on goods and services – which is what GDP is all about

    Comment by mixitup — August 28, 2010 @ 9:48 pm - August 28, 2010

  27. Look guys, Japan tried to get out of its 1990’s real estate bubble through Keynesian “Stimulus.” They failed; even though they spent their stimulus on actual infrastructure projects (albeit, unnecessary tunnels, airports, and bridges to nowhere) instead of bailing out unionized public employees like the Obamunists are doing.

    Comment by V the K — August 28, 2010 @ 11:33 pm - August 28, 2010

  28. #16 Sebastian Shaw:

    Obamanomics is Obamacide.

    #27 V the K:

    Obamunists.

    Let’s hear it for Obamunists on a tear to drink the Kool-Aid at the great Obamacide “hopenchange” tent show and hog calling pander-off.

    Comment by heliotrope — August 29, 2010 @ 10:18 am - August 29, 2010

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