US Economy Grows at Tepid 2.2% Pace; Misses Estimates

Then explain 5 trillion increase in debt under Obama. That is more than it increased in 8 years of bush

 

If call very low GDP normal. I say that shows we are still a long ways from any real recovery

 

Less tax receipts. Higher debt payments for debt created over the last 10 years.

 

No Obama is spend ,spend,spend

 

I think the 3% was a holiday bump and the 2.2% will be revised down.

 

2.2 % is not a reasonable pace for conservative Republicans who depend on the private economy for their income.

Only government workers and people on welfare would call 2.2% acceptable because they get paid the same whether the economy grows or not.

 

I would say that in todays economic climate even 2.2pc growth is pretty good compared to most other countries in the western world.

 

Spoken like a true lib with low expectations.

How about comparing our performance to China instead of the economic failures in Europe?

 

The actual situation is that Obamacare will increase the momentum of growth for the Health Care Industry by adding new sources of funds (those forced to purchase Health Insurance).
These funds will be available to the Health Services and wille used by extending services to new users and recommending new tecnologies wherever appropriate.

Consider that what is happening under Obama works to transform certain favored sectors in the new elite, like Educators, Union members, doctors, and the Health Care Services employees.

Fact:

Healthcare Costs Soar Above Overall Inflation


John Commins, for HealthLeaders Media, October 22, 2010


The average, per capita cost of providing healthcare services in the United States rose by 7.32% for the past 12 months ending in August, a rate of inflation wildly above the 1.1% overall inflation for the same period, according to new study by Standard & Poor's.

The new numbers are consistent with a trend that from August 2000 to August 2010 has seen healthcare inflation rise 48% while overall Consumer Price Index has risen 26% for the same period, U.S. Bureau of Labor Statistics data show.




We are experiencing another Federal boondoogle like Welfare which pays for broken families to raise anti-social kjids.
By making the Federal Government the bill payer for all services demanded by people who do not not directly pay the doctors, those doctors will increase the charges and render more and more services simply because it will profit them to so do.

Once Obamacare is set in stone, like Welfare, it will never go away.

 

Behold, Keynesian economics. 3-4 years later, it still doesn't work.

http://www.zerohedge.com/news/chart-day-change-q1-american-debt-and-gdp

With this massive US Treasury bubble, shouldn't we be growing like China? It would be nice to at least have some fun before this bubble implodes.

 

Let's have some honesty here.

First 2.2% is not great, but it is not awful. Bush had about 3% GDP growth during most of his term, before the massive crash at the end. And that 3% was bouyed by about 1% additional growth that was created by $5 Trillion in home equity that was extracted during the housing boom. SO, in reality, this growth is consistent with what the economy was doing during the heyday that republicans call the Bush years.

Second, there are many factors outside the USA that are hurting the economy. Europe would be doing backflips for 2.2% growth. The debt crisis over there is a significant drag on our economy. Oil prices are also reflecting a standoff with Iran over nukes, so the high price of oil is also a drag on the economy. Throw these factors into the mix and continued growth above 2% is good by many measures.

Third, this OBama is a spender thing that the republicans keep spewing is mostly BS. The deficit was projected at $1.3 Trillion a year before Obama even took office. It is continuing the way the projects laid out before he even was in office. So to blame Obama is disingenious. Republicans spent like "druken sailors" last time they were in office and the current spending is certainly attributable to much of their wild policies, like passing the largest entitlement in 50 years without a dime of funding or starting two wars and cutting taxes at the same time. Until either some sort of funding for Medicare part D is put into place, or some tax increases to fund the massive republican military are enacted, there will be large deficits. Obama has not passed spending anywhere close to what the republicans did last time they were in office. Are we all supposed to forget that. How the hell do republicans believe the craps from the same people who lied to them over and over.

Fourth, a budget like Romney, with cuts to all social programs and increase in military spending and cuts to taxes would be devasting to the economy. So I will take the democrats more sane approach. Sure, I would not push for the exact policies that are in place now, but they are going to be far better than what Romney is proposing. So in this respect, Obama is a far lesser evil.

 

Nothing you post here means anything unless you acknowledge that the purpose of cutting taxes after 911 was just so the government could collect more money in Taxes since the tax cuts stimulkated the private sector spending.

This has been the effect of Tax cuts which places more cash in the hands of the consumers.

The REALLY and maybe ONLY problem right now is the reduction and vanishing Consumer Spending.

If people are not buying anything, then the GNP declines or grows very small.
Taxes are based on the GNP, since it is the economy, in general, which is actually being Taxed.


What liberal ignore in logic and mathematics is this rather difficult idea for the that less Tax on the economy fuels its expansion.
What liberal falsely think, irrationally, is that raising the tax gets more money.
No.

Raising the Tax strains the fledgling economy and reduces the growth of the GNP.

 

The evil is actually in failing to admit failure in certain social experiments like Welfare, the Volunteer Military, throwing money at Educational Reform, Medicare, Health, Milk Subsidies, and Unionization in the civil services.

These things did not do what they were intended to do, and created problems that are destructive.


Welfare has paid people not to get married and have as many fatherless kids as possible, from one generation into the next.

Medicare has created a ever growing abnormal rate of Inflation in the Health Services System fueled by people who doctors can tell what services they should demand and buy from doctors while someone else, Uncle Sam, gets the bill.

Unionization of the organizations government created instead of using outside vendors have had the effect of raising costs above what would have been charge by private companies, while in essence, creating millions of voters who can force the boss to pay their demands or face re-election problems.
The unions are the tail wagging the Tax Payer, who has no representation anymore.

 

Funny thing, that's not what happened. Republicans always claim these tax cuts spur job growth, GDP and increase tax revenues. Yet, the FACTS are that the revenue fell significantly after the Bush tax cuts, took years to return to the level they were before he took office. At the same time, job growth was anemic during all of Bush's term, with the first term being the lowest since the great depression and the second term being the second lowest. And like I said, GDP growth was not that great while the housing bubble pumped trillions into the economy.

So until the republicans acknowledge that tax cuts don't do what they say, the right wingers are deluded that trickle down economics are anything other voodoo economics. The result has been simply that since the republicans started with this with Ronald Reagan, the result has been that most of the country has gotten poorer and nothing has trickled down. the bottom 50% of the country has dropped from earning 18% of the income to earning 12% of the income. And the republican response has been to scream that they should pay more in taxes at the same time while the rich get even more tax breaks while they already pay the lowest rates in 80+ years.

Tax cuts leads to deficits just the same as excessive spending does. To balance the budget, taxes need to increase and spending needs to be cut. And until the republicans can stop their delusional crap that tax cuts increase revenues, we are doomed.

 

Consuming resources does not increase production nor the means of production. Therefore, it does not lead to growth.

The Federal Reserve has been engaged in a QE program since October, pumping upwards of $90 billion per month into the economy. That had some effect at first, but now they will have to double the amount to get the same effect. There has been no real growth, just government programs intended to create the illusion.

On the plus side, manufacturing is he strongest it has been in years, so we might see a real recovery down the road despite the best efforts of the economic central planners. Likely the recovery will be lead by an oil boom.

 

No way...
More Tax money came in as I said.
Tax collections doubled.
You can't get away changing the subject to employment.

What happened was 911.
The economy dipped as Airlines all faced bankruptcy and economic hell broke out.

If you loom at what happened to the Tax base, which I saod was the reason for cutting the rates, the $1 Trillion budget under Clinton doubled to $2 Trillion under Bush.

Republicans are saying exactly this, not what you just posted about jobs.
Get it straight.

Lower Rates = higher collections.

Bush started with 911 forcing the economy downward, and then at the height of the rebounce in 2008, the Hiousing bubble forced the GDP down again.

(That Housing Bubble was the result of Democrats under Clinton and Sen Dodd working with Barney Frank to demand that loans be granted without checking the credit worthuness of the borrowers.)

 

How can one post be so wrong...

This is income tax revenues.... you call this doubling?


Go ahead and show me facts of you claimed doubled revenues... because that is just plain and simple false.

And the housing bubble was not because of Barney Frank. The housing bubble was because of first the repeal of the Glass-Seagal act under Reagan and the the modernize banking bill under Clinton with a republican congress. These combined allowed mortgages to be written and then bundled into investments and sold off with zero risk to the banks. So there was absolutely no incentive to make sure the people could pay back the loans because the only people who had anything to lose were investors, not the loan originators.

 

The tax cuts were passed before 911, but you are right. Bush and the Republicans promised the tax cuts would make the economy grow much faster, revenues grow much faster, would not cause deficits, and that with his tax cuts, the Govt would pay the debt of about 5.6 trillion down by $2 trillion.

It was all bull(*)(*)(*)(*) and fantasy of course, pandered to a gullible and each "Pass the Buck" generation electorate more than happy to pass the costs of their Govt to future taxpayers.

As opposed to stimuluating the economy, the economy under the Bush tax cuts have done the worst since the Great Depression. Revenues fell actually and proportionately by hundreds of billions a year, squandering a surplus budget Clinton left, and adding trillions more debt.

Well no, it also depends on having taxes. When you cut the effective tax rates, you are cutting revenues as well.

You have liberals confused with conservatives.

Never did before. Roosevelt raised taxes and the economy kicked ass. Clinton raised taxes and the economy kicked ass.

 

Now one is going to produce anything if it is not consumed.

 

i say that is Obama talking points and not reality

Do you have an independent source that shows this or is this just your opinion

 

More deception from the left

http://en.wikipedia.org/wiki/Economic_policy_of_the_George_W._Bush_administration

 

For a recession recovery, it is pitiful growth. The usual at the end of a recession ends if up to 6% growth. This kind of growth means we are not recovering very well at all.

The real job story.

 

Excellent job Herck, you caught most of the right wing propaganda in that post, which is typical of the type of erroneous nonsense we see posted until they get educated.

A couple you missed: The economy did not "dip" after 911 and nor did "all economic hell break loose". The 2 negative quarters of the so-called "recession of 2001 were before 911. There was never a negative quarter after 911. This myth is another product of right wing propaganda.

Also, the housing bubble occurred during the reign of George Bush while the Republicans controlled the Congress.

 

The "re-elect Obama no matter what press" will spin this in a positive way and blame republicans.

 

If Bush drove us into a ditch, then Obama is the guy who fiddled around in the engine and broke the transmission. He's gotta go.