DATA SNAP: US 3Q GDP Rose 2.2%; Less Than Earlier Estimated

Wall Street Journal ^ | 12/22/09 | JEFF BATER, LUCA DI LEO and MEENA THIRUVENGADAM

[Pontiac]

Gross domestic product rose at a 2.2% annual rate July through September, after falling by 0.7% in the second quarter, the Commerce Department reported in its third GDP estimate. Last month, the department revised its third-quarter GDP growth estimate to 2.8% from an originally reported 3.5%.

[Pontiac]

So much for the great recovery.

[NaughtiusMaximus]

It was better than we expected.

And then it wasn’t.

[Nevermore]

3.5% -> 2.8% -> 2.2%
I don't believe even the lousy 2.2% number.
"Where's the beef?!"

[jveritas]

Many of us have always known that the socialists are going to fake important economic data such as GDP and unemployment in order to make the economy looks much better than it is. However this is simply an incredible lie they made in regarding the GDP in the second and third quarter.

Second quarter GDP was originally reported as a loss of 0.1% (-0.1%) when now they have revised it to a loss of 0.7% (-0.7%). The GDP of the third quarter was report initially at a gain of 3.8% (+3.8%) and now to it is revised down to a gain 2.2% (+2.2%) in other word they have originally inflated the GDP of the third quarter by 72%. Almost all this +2.2% is government spending i.e. more debt.

[Pontiac]

The next quarterly estimate comes out January 29. I wonder how inflated that post Christmas growth estimate will be?

[jveritas]

Many of us have always known that the socialists are going to fake important economic data such as GDP and unemployment in order to make the economy looks much better than it is. However this is simply an incredible lie they made in regarding the GDP in the second and third quarter.
Second quarter GDP was originally reported as a loss of 0.1% (-0.1%) when now they have revised it to a loss of 0.7% (-0.7%). The GDP of the third quarter was report initially at a gain of 3.8% (+3.5%) and now to it is revised down to a gain 2.2% (+2.2%) in other word they have originally inflated the GDP of the third quarter by 59%. Almost all this +2.2% is government spending i.e. more debt.

[Pontiac]

Thanks for the historical analysis.

[Pontiac]

Wow, quite a time delay on that double tap.

[jveritas]

I corrected some of the figures in the second post :)

[Pontiac]

Sorry, I see you revised your calculation.

[Nevermore]

I would love to see the demographic on that “2.2%” (if it is real).
I would bet good money that it is rich people (Kennedys, Pelosis, Kerrys Soroses, etc.) getting richer and the rest of the country getting poorer.

[ActrFshr]

Beef is gone due to bovine emissions, but there’s plenty of pork!

WSJ link doesn’t work but economicpolicyjournal.com has the story too.

[LTCJ]

There's another post floating around on FR showing that 70% of the 2.2% “growth” was due solely to Cash for Clunkers. Hope there’ll be some Change left when the whole thing collapses.

[Pontiac]

I would bet good money that it is rich people (Kennedys, Pelosis, Kerrys Soroses, etc.) getting richer and the rest of the country getting poorer.

That does make me think of something.

You know I cannot ever recall a Congressman or Senator ever going broke or declaring bankruptcy.

Why do you suppose that is?

[ActrFshr]

zerohedge also has the story.

Here’s the real reason for silent changes. They will revise everything down so next year just before elections they will have a 1.3% head start (3.5 minus 2.2).

Cash for Clunkers was 1.4% and the housing tax credit added another 1%+. IOW, borrowed money aside, the GDP was negative. Now how to get that money back? Why taxes of course. What will taxes do to the future economy? Why make it more dependent on Democrats for welfare of course.

[Pontiac]

If it is true that the growth was due to Cash for Clunkers and that the C for C program cost $100K per car sold in the program; is that really growth or is it really further worsening of the recession due to the cost of the money to the government.

[jveritas]

Our GDP, the largest in the world, is around $ 14 trillions. Therefore 2.2% increase represents around $ 300 billions dollars. I am not sure that the cash for clunkers joke was that big to constitute 70% of $ 300 billions i.e. $ 210 billions. However it is certain that at least 2/3 of the 2.2% GDP growth i.e. $ 200 billions is coming from the government spending i.e. more debt.