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GDP Rose by Two Percent in the Third Quarter

by Keith Koffler on October 26, 2012, 11:15 am

Gross Domestic Product grew at an annualized rate of two percent in the third quarter, the latest evidence that almost four years into the Obama presidency, the economy is still struggling to launch itself into a normal rate of growth.

The rate is a bit higher than the 1.5 percent rate of growth in the second quarter. But anybody who is basing their vote on the GDP number will know that two percent is crummy and won’t do anything to reduce unemployment.

This is that last GDP report that will be released before Election Day. Next Friday the final unemployment report of the election season will be out.

{ 30 comments }

JimK October 26, 2012 at 11:34 am

Most of that growth was due to the 9.6% increase in gubmint spending. Just The Won trying to boost the numbers.

DeniseVB October 26, 2012 at 11:40 am

That’s what I heard. Gov spending pushed up the points.

Sadie October 26, 2012 at 12:35 pm

It will be revised when the Obama “street employees” are laid-off November 6th.

Star October 26, 2012 at 11:37 am

Spin, spin–brace yourelf.

Sadie October 26, 2012 at 11:42 am

My PDL (personal disgust level) jumped a thousand fold September 11, 2012.

Just2old October 26, 2012 at 11:48 am

My PDL pegged four years ago and has been stuck there ever since…

RT October 26, 2012 at 3:27 pm

@Just2old – 4 years ago? Pegged 4 years ago? Before your buddy Barry was even in office… PDL pegged? Hmmmmm.

Going out on a limb here… Inquiring minds wanna know – how were you feeling during 8 years of Bush – 6 of which was all GOP? Was your PDL waning a bit then or was it just bad luck? Don’t wanna go there? ok. In your time machine of Reagan, Bush, Clinton, Bush – when was it good for you buddy? AND good for the country? Do share.

Star October 26, 2012 at 5:55 pm

I had a big job and money and silk dresses during Reagan. I had money during Clinton and found him weirdly reassuring–even with his “activities,” I felt like he had natural curiosity and was looking into things and governing. I disliked Bush’s fakey rube act when I knew he was from Conn. and I distrusted the wars, I felt played. But THIS–what we have had–I am scared to death and have loathed every second! What am I leaving my child to deal with? Brrr.

RT October 26, 2012 at 11:48 pm

Star – ok, I read what you wrote twice. Are you linking your success to something economic or attributing it to one party over the other? A lot of folks are scared, and rightfully so.

Listen, Boat USA crashed ashore and was severely damaged by 50 years of check writing. Severely damaged. The data shows it all – barely floating and taking on water.

And? Well, our cocaine, got to have it now generation wants a quick fix… I ask, what on earth could have / would have a GOP win in 2008 done better? My goodness man, the world was in a tailspin, banking system collapse, crashing markets, the works…

And President Obama should have what? Retrofit Boat USA in 2 years and send her back out with less debt and all things rosy – with Europe and Asian markets in the toilet? Um, no….

Bottom line, I call BS. The Dems are tax and spend and the GOP are spend and spend… Both had up to deficits. We can all read the charts that show deficit as a percentage of GDP. Until these last 3 years, it was a Reagan, Bush, and Bush MASSIVE run up with Clinton getting lucky… Kennedy, Johnson, and the rest were in play, but mathematically less significant…. We’ll “never know” what would have happened had Congress not authorized budgets running up the deficit even more. That’s like asking had Nixon gone tactical nuclear to end the Vietnam war in 1968 leading to a better or worse outcome. Even the opposing brain trusts can even agree…

Simply, this is not an Obama problem – the problem is systemic… I’ll take tax and spend over spend and spend. We can not “cost cut” ourselves into prosperity, let alone a balanced budget.

Star October 27, 2012 at 1:14 pm

I don’t even have the energy to expend the keystrokes on you today, RT. Sure, sure, you’re right…always…Since you are always on both sides, you have to be right, yes? You never have interesting info like Shofar and Langley–your posts are pseudo-intellectual…I just give up.

RickW October 27, 2012 at 7:07 pm

RT, do you think Obama with his vague plans for a second term is the one to lead us out of this mess we’re in? He basically insulates himself from the Congress, even his own party. Granted, the Congress has done nothing to distinguish itself here but would you not agree we need a fresh set of eyes on the issues?

(BTW in a previous life, were you known as Death Ray?)

Susan October 26, 2012 at 12:04 pm

I stopped believing any statistics that come out of this government long ago. That 2% growth will most assuredly be revised downward by next week…long after the jackals in MSM have spread false hope about an improving economy to their dwindling audience of true believers.

RT October 26, 2012 at 3:20 pm

“A leader is a dealer in hope.” Good ole Bonaparte …. Wonder what Mitt is spinning…. Oh! Hope! Obama? Hope!

Crusty ole timers get it. The basic political approach to securing power remains largely unchanged over the millennia.

Citizens are making choices based on this fundamental premise alone. It is why “vision” is always stressed and those nasty little details called plans are set aside – by both parties. With the swing voter having the attention span of a gnat, why talk details… It only gets you unelected….

Star October 26, 2012 at 5:58 pm

All this archness and faux wit–not to get personal–is wearying.

RT October 26, 2012 at 11:56 pm

Star – agreed. As is often quipped, it is hard to hold two opposing viewpoints in the brain. Both candidates are working the hope angle.

Anne Lieberman October 26, 2012 at 1:21 pm

Others have already pointed out how the “biggest rise in government spending in three years” affected this GDP report.

If you’re (rightly) skeptical of the administration’s “data charlatanism” I highly recommend reading Tyler Durden at ZeroHedge.com, For example: http://www.zerohedge.com/news/2012-10-26/q3-gdp-estimate-beats-expectations-government-consumption-soars

Sadie October 26, 2012 at 2:09 pm

Anne – Zero Hedge should be on everyone’s reading list.

Shofar October 26, 2012 at 2:24 pm

I wouldn’t be surprised is unemployment was suddenly down under 6% next week. Every time this adminsitration has released a report of something, you have to wait 15-30 days to get the “adjusted” figures and they are always worse than the original report.

RT October 26, 2012 at 3:06 pm

Shofar – wrong. Not correct. Inaccurate. Off base. Not so.

Wait, you have a point. Why does truth have to play a role – we’re busy sniping and grappling with our inner selves….

REPOSITIONED: True unemployment is under 3%. Just adjust the number for all of those freeloaders who are bilking the system… With the right man in the office, we’ll either find them work they don’t want or kick them off the free lunch plate… Either way, win / win.

RickW October 26, 2012 at 3:29 pm

Shofar, are you suggesting we doubt Dear Leader? I mean he DID say that the higher gas prices were the result of a recovering, growing economy. So I guess I can assume the decline of $.24 in my area over the past 2 weeks is the sign of…..a failing economy? I’m so confused…….(NOT!)

RT October 26, 2012 at 4:40 pm

@RickW – anything substantive to offer? Hate to disagree with you one one point – you are likely indeed confused, and if not, then merely ignorant. Or both…. Either way, the good news is you can help solve the problem by educating yourself.

I can help if you want. We can start with some fundamentals and work to become an independent thinker. Or, not…

Star October 26, 2012 at 6:00 pm

Speaking of unsubstantive…sigh.

RT October 26, 2012 at 6:13 pm

Star – I asked for detail and also offered to help. Mentoring and coaching are time-consuming labor intensive tasks. *** sigh ***

Want to talk oil, global demand, elaticy, barriers to entry, regulation, comparative advantage, corporate tax strategy, tactical preventative maintenance during demand periods, imminent domain, government leases, etc.?

Pick one, pick all, pick some, add some. I am on.

RickW October 26, 2012 at 8:49 pm

BTW RT, I think you meant “elasticity” and its “eminent domain”

Star October 27, 2012 at 1:17 pm

They didn’t have debate club in vocational school…LOL.

RickW October 26, 2012 at 8:28 pm

RT, “Hate to disagree with you one one point” Even an ignorant person such as myself can spot a typo as obvious as this. Or do you stutter?

RT October 26, 2012 at 11:07 pm

Thanks RickW – I appreciate you focusing on what’s important! Atta boy! Me, still trying to type on a little computing device with auto spell check…lol…

Glad you are on the case. Your observations are drowning and you’re describing the water. Thanks for extending the conversation… Little minds, little angry missives… If I spelled that right…

Concerned_American October 26, 2012 at 4:04 pm

Also announced was the fact that 2nd quarter GDP growth was revised downward to 1.3% from the the original stated 1/5%.

Do any of these figures ever get revised upward?

I wouldn’t trust any economic figure reported from the government EVER! Especially in the month or two before a Presidential election.

The Chicago crew (is that racist?) will do anything and I do mean anything to get Barry re-elected.

If you haven’t already, read Saul Alinsky’s “Rules for Radicals” — The Bible of the left. You will be surprised.

RT October 26, 2012 at 5:06 pm

Make up your mind. Re: no trust. Is it the government as a whole, this particular government, just the current presidency, or what?
Re: Chicago Crew – they’ll do anything? Really? The full scale of cooking books to murder? And everything in between? Yikes…

Do you want to make a difference? I have an idea. If you are that passionate, why not head on over to a downtown Chicago street with a pile of Alinsky’s books and isetting them on fire Рtaking great pains not to immolate yourself. Now that would be aking a bold statement. And, if spun correctly by your Teaparty friends, you could achieve a coveted paragraph in TP history!

Star October 27, 2012 at 1:18 pm

Now you are just getting giddy.