Government Spend Props Up GDP.
Of course that huckster Trump in trying to sell it as a huge rebound.
Now will the Trump True Believers drink the Kool Aid or will they remember that this is just the $3 Trillion of stolen money propping up a looming disaster?
I know this probably will not surprise anyone, but the FOX News coverage does not even note how the CARES Act drove these numbers. And that without the next stimulus (ie theft from kids) and with COVID numbers growing, things are going to get rough.
It will be interesting if he is the is one of the only Presidents to see negative GDP growth during his term in office. :-) :-(
7 comments:
Well the White House seems ready to admit they "bought" the temporary growth with borrowed money. In fact they even brag it is twice the size of that terrible Obama bailout...
"The growth in the third quarter, and the particular strength of American consumers, also reflects the swiftness and magnitude of the aid the Administration provided directly to America’s families, workers, and small businesses. The $2.7 trillion in stimulus that the CARES Act and other pandemic-related legislation supplied is roughly 13 percent as a share of GDP. That is more than twice the size of the 2009 American Recovery and Reinvestment Act (ARRA) as a share of GDP.
This direct aid supported Americans’ income through the pandemic. Total personal income rose above, and still remains above, pre-pandemic levels. Personal income excluding the government transfers provided for in the CARES Act, however, decreased from pre-pandemic levels (Figure 2). Without this income support, the resurgence in consumer spending would likely not have been as strong.
Growth is always bought with borrowed money.
==Hiram
Wrong...
Is that why they don't my credit card at Target?
--Hiram
They also accept cash.
Usually growth is fueled by new ideas.
They also accept cash.
In some cases.
Usually growth is fueled by new ideas
If that were the case, everyone would be eating McRibs.
--Hiram
Some new ideas drive growth for awhile, then another new one is needed...
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