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Tag Archives: GDP

Economy Grew at Just 2.1 Percent in the Second Quarter

Well, it’s not great, but it’s not a disaster.

But I will say, it seems hard to me to run the economy at much less than 3 percent with low interest rates and annual deficits in the hundreds of billions – or even a trillion – dollars.

That’s what one calls, a lot of stimulus.

Nevertheless, Barack Obama managed to do it. So far Trump’s GDP numbers have been quite good.

That, of course, will change for the president elected in 2032 who has to begin paying off his debt. Or if we suddenly incur a crisis requiring massive spending of money we don’t have.

Don’t say I didn’t warn you.

From the Washington Examiner:

The economy grew at a 2.1% annualized rate in the second quarter, the Bureau of Economic Analysis reported Thursday morning in a preliminary report on gross domestic product.

Forecasters had expected GDP growth to slow from 3.1% in the first quarter to slightly below the 2% mark. The Trump administration has promised sustained 3% annual growth.

With the growth recorded in the second quarter, the economic recovery has now hit the 10-year mark — it began in June 2009, by the National Bureau of Economic Research’s reckoning. It’s also the longest recovery in U.S. history, eclipsing the 1991-2001 recovery by one month as of July.

One negative indicator in Friday’s report is that business investment growth stalled out and turned negative for the first time in the Trump era. Republicans have aimed to boost business investment, especially through the 2017 tax cuts.

Overall, however, the report indicates that underlying growth is stronger than the headline 2.1% growth rate suggests. Consumer spending grew at a strong 4.3% rate, and overall demand appeared to be strong.

Economy Keeps Thumping Along: Third-Quarter Growth at 3.5 Percent

Well the, Obama people must be disappointed. They had predicted that a permanent era of slow growth was at hand.

But alas, the fault of the meager growth of the Obama years wasn’t America’s. It was OBAMA’S.

Trump is closing in on two years into his presidency. Obama can’t even possibly claim at this point that he deserves the credit. In fact, the economy began to improve the day Trump was elected, because businesses understood that a change was finally at hand.

From the Wall Street Journal:

Strong consumer and government spending powered economic growth in the third quarter, although a warning sign about the outlook emerged in the form of weak business investment.

Gross domestic product—the value of all goods and services produced in the U.S.—grew at a seasonally and inflation-adjusted annual rate of 3.5% from July through September, the Commerce Department said Friday. That was slightly higher than the 3.4% reading economists surveyed by The Wall Street Journal had expected and followed strong growth in the second quarter.

Consumer spending, which accounts for more than two-thirds of total economic output, rose at a 4.0% annual rate in the third quarter, the strongest rate of growth in nearly four years. A low unemployment rate, steady job and wage growth and the late-2017 tax overhaul encouraged spending by consumers.

Adding to the growth burst, federal government expenditures were up at a 3.3% annual rate in the third quarter, with defense spending rising at an annual rate of 4.6%. State and local government spending also rose at a 3.2% annual rate, a burst that is helping to power overall economic activity.

The Wall Street Journal, which I regard as a rare honest broker among MSM media outlets, nevertheless sees cause for concern in the future.

However, some analysts see a slowdown looming.

“We see five reasons for more modest growth: a fading fiscal stimulus boost; rising inflation; tightening monetary policy; increasing protectionism and slowing global activity,” Gregory Daco, an economist at Oxford Economics, said in a note to clients.

We’ll see. Of course, everyone hopes the economy will continue expanding robustly. Right, lberals?

Economy Rebounds to 2.6 Percent Growth in Second Quarter

Trump effect? Yeah, I think so. One of the most significant parts of this is that corporate investment is growing strongly. Business leaders get that the era of over-regulation is over and their taxes might be going down.

The second quarter is the first one that is more a Trump quarter than an Obama quarter, though of course we’ll be saddled with Obama’s lousy economic program for a long time. Two and half percent is not great, but it’s not bad, and it is a full point above average economic growth during the Obama administration and half a point above the “Obama recovery” era.

As excerpted from the Wall Street Journal:

Gross domestic product, a broad measure of goods and services produced in the U.S., rose at a 2.6% annual rate in the April to June period, the Commerce Department said Friday.

The second-quarter advance is a welcome rebound after a lackluster start to the year, when GDP grew at only 1.2% pace. It is less clear if stronger growth is a sign of momentum or simply repeating a familiar pattern of weak winters followed by a stronger spring and summer.

Details within Friday’s report were generally positive.

Both consumers and businesses helped propel growth in the second quarter.

Household outlays rose at a 2.8% pace, an improvement from the first quarter’s 1.9%. Consumers stepped up spending on both goods and services, possibly reflecting a broadly positive outlook since the election. The Conference Board’s index of consumer confidence in July rose to the second-highest level in 16 years.

Businesses also have been upbeat. A measure of corporate spending on projects, nonresidential fixed investment, climbed at a 5.2% pace. While that was down from the first quarter’s 7.2%, it is still one of the best readings since 2014.

The Obama Economy Stinks Up the Place for the Last Time

The first quarter 2017 GDP numbers are out this morning, and they are typically lousy for the president —  the previous one, Barack Obama, that is — who has had the worst record of economic growth of any since Herbert Hoover.

Yes, Herbert Hoover. With an average growth rate of around 1.5 percent, Obama stands proudly next to the last president whose term witnessed an actual economic contraction.

The first quarter is not really President Trump’s. Obama was actually president the first three weeks of it, and it is mainly his policies that have been in place and have affected the economic terrain.

And so, the Obama “recovery” continues and finally, comes to an end. The economy was nearly in recession the first quarter, growing at 0.7 percent, the worst performance in three years. So while Obama hangs out on Pacific islands drinking frozen rum runners and writing the memoirs that will make him millions, you and I can just deal with it.

Consumer spending was slow, growing at just 0.3 percent, dragging down the numbers. I saw one report that, as I’ve seen so often, blamed the weather. Sorry, it’s not the weather.

It’s this:

Barack Obama