Surprisingly strong economy shifts political calculations

The Hill ^ | 07/28/2023 | ALEX GANGITANO AND TOBIAS BURNS

[ChicagoConservative27]

The U.S. economy is hitting a stride, growing at a 2.4-percent rate in the second quarter in a surprisingly strong showing that adds confidence to the idea that the nation may avoid a long-threatened recession.

The growing economy comes coupled with other good economic news: Inflation is slowing, and unemployment sits at just 3.6 percent.

Markets have noticed. The Dow Jones Industrial Average is up more than 4 percent over the last month and more than six percent this year, despite dropping on Thursday.

It’s all good news for the White House and President Biden, who have used the recent string of positive economic announcements to tout their stewardship over the economy as they head into an election next year.

[ChicagoConservative27]

This propaganda is amazing

[GoldenPup]

The books were in all likelihood COOKED.

[OttawaFreeper]

And we know with numbers like these, the media would crucify Trump or Reagan or any other Republican in the White House.

[bert]

Sensing the end of the Biden cabal, the economy is on an uptick

[tomkat]

[laconic]

A further example is Andrea Mitchell who reports for NBC/MSNBC and who personifies bias. She apologized to Delaware’s senator for using Trump’s and Hunter Biden’s very good name in the same sentence. In addition to being way too old for the role, it is obvious that she is not, and never has been a “journalist”.

[dfwgator]

Gee, ya think?

[panzerkamphwageneinz]

Same people said that three straight quarters of negative growth wasnt really a react

[1Old Pro]

growing at a 2.4-percent rate in the second quarter

Thanks to government spending growth.

[Dan in Wichita]

Andrea Mitchell is noting but a political whore.

[Chewbarkah]

It’s a political sucker-rally.

[MrRelevant]

Wars are good for business.

[central_va]

40 years ago 2.4 GDP would be viewed as a crisis.

[bort]

I would hardly call the economy “strong,” although things are better than the dire predictions that were made. The “strong” economy, however, is about to be hit with two headwinds:
1) The student loan deferrment that started 2 years ago during COVID ends September 1st, which means that tens of millions of borrowers—who have been spending their windfall on consumer goods and vacations—now will have to pony up between $300 and $1,500 per month to make student loan payments. And
2) The savings and low credit card balances from COVID (most workers getting paid for sitting at home, working from home, etc. and not being able to travel) are about kaput. Credit cards are being maxxed out as inflation is crushing consumers.

Also, keep in mind that the impact of rising interest rates has not fully taken effect. Let’s see how things look in the 1Q of 2024.

[central_va]

1/20 ( 5%) of the US GDP is govt deficit spending. SO subtracting: 5% ( fake ) - 2.4% = -2.6% GDP + inflation. The US economy is shrinking 2-3% per year or about 30% per decade.

[1Old Pro]

https://www.statista.com/statistics/215503/expenditures-of-the-us-government-by-quarter/

[cowboyusa]

Whipe your chin, The Hill.

[Vaduz]

Indeed

Economy is hitting a stride, growing at a 2.4-percent rate in the second quarter.

Vacations school supplies clothes............................

[cymbeline]

“5% of the US GDP is govt deficit spending. SO [subtracting that from 2.4% growth] means the economy is shrinking 2-3% per year”

Sounds like a legitimate analysis to me.

[kearnyirish2]

I heard a newsliar on the radio talk about falling inflation, listing some non-essential items that had fallen in price (they always do when people have less discretionary spending - supply & demand); they inserted at the end that food prices hadn’t fallen - and that is the most critical to average people (we need to eat).

I believe a lot of this manipulation of markets is to head off massive retirements as large numbers of Americans reach retirement age; most of the imported Replacement Americans are not the same quality as most of the retiring skilled workers. I see this firsthand, as recent retirees are forced back into at least part-time work because all of their calculations have been thrown off by the inflation. They aren’t in the market for expensive items, but they have to eat and pay for housing.