You Heard It Here First – 2nd Qtr. GDP Stoked by Stimulus Spending

http://www.reuters.com/article/economicNews/idUSN2426976220100824

Forgive me for taking a moment to toot my own horn but, in the Reuters article for which I’ve provided a link above, Reuters has finally taken note of the same thing I reported on August 5th – that 2nd quarter GDP was propped up by enormous stimulus spending, without which the economy may very well have sunk back into recession.  (See https://petemurphy.wordpress.com/2010/08/05/shocking-2nd-quarter-gdp-report-points-to-further-recession/)

The real story here is that, with stimulus spending ebbing fast, the economy is in very serious trouble, a point that each new economic report seems to be driving home.  And with each passing day, the Obama administration seems increasingly delusional in its belief that the economy is slowly on the mend.  No wonder that Obama supporters are rapidly losing faith.  Just as sadly, Republicans seem just as clueless about the need to fix broken trade policy.  Batten down the hatches.  We’re in for a hell of a storm!

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6 Responses to You Heard It Here First – 2nd Qtr. GDP Stoked by Stimulus Spending

  1. MikeF says:

    Viable long term employment is the sole remedy for the salvation of America’s Middle Class. Reducing unemployment then is the key factor to any recovery. In a sense of “net viable employment,” we are now in the 32nd consecutive month of decline. This does not consider the new inflow into our jobless market which represents more than 120,000 new job seekers per month.

    And yes, batten down the hatches, as there is presently no plan whatsoever to return our base employment to America. After all we are a service and information based economy these days. Unfortunately, there is no such thing.

    • Peteopolis says:

      No wonder student loans are non-dischargable (see link below). The American Public doesn’t want anything to do with a real economy. Liberal arts, recreation, psychology, etc…not exactly the kind of “education” that is going to fix that oil import dependency. What is “viable long term employment” when innovation and environmental degradation is not properly accounted? The answer is Big (useless) Government.

      Bachelor’s degrees conferred by degree-granting institutions, by field of study: Selected years, 1970–71 through 2006–07

      http://nces.ed.gov/programs/digest/d08/tables/dt08_271.asp?referrer=list

  2. MikeF says:

    Peteopolis,

    Long term viable employment is the manufacturing, mining, growing, and processing of the products that Americans REQUIRE and purchase everyday.

    NOTHING should say Made in China so long as any American is unemployed. We made a deal with the Devil and he’s come to collect.

    That said, if environment and degradation of natural resources are taken into proper consideration, we are well past the point of no return.

    Infinite expansion in a finite environment is both physically and mathematically impossible. Enjoy what we have while we have it as the exact sciences have yet to lose a single battle against mortal man. Mother Nature is one mean Mother!

  3. Peteopolis says:

    “Long term viable employment is the manufacturing, mining, growing, and processing…”

    All those people are not even aware of the Labor Theory of Value thrust upon them. Its why the earnings of a MBA are 20x greater over a lifetime. Its why in Great Britain they are overhauling the university system to introduce a graduate tax that will replace student loans. Supposedly, this additional tax is intended to claw more back from those whose degrees lead them into high-earning careers. Apparently, some people believe a Job is nothing more than a slave who contributes to a 401K plan so other people can comfortably retire.

    • Pete Murphy says:

      Nor do they care about 18th century economic theories. They just want to make a living. Wages are all about the supply of and demand for labor. Of course more highly educated workers command higher salaries. But only up to a point. Today’s law school graduates can’t even find jobs, so plumbers, carpenters and electricians are doing better than they are.

  4. MikeF says:

    MBA will soon stand for Millions Becoming Available.

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