Fourth Quarter GDP

[G8trGr8t]

this is what many have been saying all along, you cannot grow the economy by gubmnt spending. the dems created another giant bubble here and it is going to pop one day and somehow, someway the libs and the MSM will blame the pubs for it. Housing bubble all over again.

good old days of high school educated people with marginal work ethics being prosperous and retiring at 62 or younger are history (unless you are gubmnt employee that is) and no amount of protectionism or gubmnt safety nets are going to bring it back. gubmnt is creating a whole generation of entitled people who feel they deserve to take from the producers to support their lifestyles.

and meanwhile, student load debt grew by 75% between 2007 and 2011. another giant gubmnt created bubble waiting to pop. until you get the gubmnt out of trying to control the economy, these bubbles will continue to inflate and then burst

[108]

Originally Posted by MichaelJoeWilliamson

In the short term

yes, no, maybe...there certainly isn't a standard we can look at

when Gov reduces spending it doesn't mean the private sector will fill that vacuum and more

i mean, it would be one thing if less spending meant less taxes, and therefore more money into the economy would increase demand, but we have $16 trillion bigs ones to reduce

[HALLGATOR]

It's like the old "pay me now, or pay me later" ad. We might as well quit putting it off and start doing it now. I don't think it should be so drastic it sends a fragile economy into a tailspin but we should get it underway and work through it.

[G8trGr8t]

well if we didn't borrow so much we wouldn't have so much to pay and the work through would not take as long

[MichaelJoeWilliamson]

Originally Posted by 108

yes, no, maybe...there certainly isn't a standard we can look at

when Gov reduces spending it doesn't mean the private sector will fill that vacuum and more

i mean, it would be one thing if less spending meant less taxes, and therefore more money into the economy would increase demand, but we have $16 trillion bigs ones to reduce

Government spending does not help the long term prospects for economic growth because so much of government spending does not create a positive feedback loop for wealth creation. Private investment and consumer spending do provide that loop.

Spending money to build a sidewalk does less for a long term benefit to the economy than spending the same money to open a store or restaurant.

Yes, reducing government spending can hurt an economy in the short term, but if it does, it is only for the short term. And increasing government debt will drag down the economy.

[mastoidbone]

Stocks are up because profits are up.
Profits are up because of a low savings rate and massive Obama deficits increase profits.

[AzCatFan]

Government spending can prop up an economy, but usually only short term, as MJW points out. There are some exceptions, like MIC, which can create large business sectors based on government spending. Just think of companies like Boeing, Honeywell, Raytheon, etc., that while they serve the private sector, also have huge government contracts for aerospace defense. Of course, as we all know and have currently experienced, the government gravy train can't run forever.

The news today isn't all bad. The government cut 15% from its largest expenditure and the economy didn't shrink much because consumer spending was up. Would have been better, of course, if the economy still grew, but think about what some of our current, major issues are today. One, the debt. Two, imbalance between government and private sector effecting the marketplace. Well, the first thing to do to get yourself out of a hole is stop digging, and we cut a significant amount of defense spending. And while consumer spending didn't make up for all monies took out of the economy by cutting government spending, it came close. And that speaks to a better balance.

We are still not out of the woods yet, and our financial standing is still on shaky ground. But if we can continue to cut spending and at start to grow the economy, we will be on more solid ground. That's the challenge facing us.

[jimgata]

To think that increasing government spending is going to cause this economy to grow is assinine.
the only way for the feds to get money is through taxes. raise taxes and you take away money from the private sector.
Has anyone even thought the amount of increased debt that will result from the government putting he economy on a charge card, if interest rates increase only slightly?

[g8trjax]

Come on. Interest rates will never go back up. You worry too much, just go,with the flow.

[jimgata]

Defense spending cuts are being blamed for the gdp. The overall increase in spending more than outpaced the defense decrease.
Now on the other hand Obama's cost for Air Force One and his trips would cause a dramatic decrease in the gdp, if he cut back on his flying.
1.6 million to fly to Vegas to make a 20 minute speech. How ridiculous can it get?

[MichaelJoeWilliamson]

Originally Posted by jimgata

Defense spending cuts are being blamed for the gdp. The overall increase in spending more than outpaced the defense decrease.
Now on the other hand Obama's cost for Air Force One and his trips would cause a dramatic decrease in the gdp, if he cut back on his flying.
1.6 million to fly to Vegas to make a 20 minute speech. How ridiculous can it get?

[DeanMeadGator]

Originally Posted by g8orbill

but the 47%ers prez is supposed to lead us out of the desert

Out of the desert and into the abyss of a $20 trillion national debt.

[jimgata]

The federal government spent more the last quarter of 2012 that the previous 2 quarters. In fact they spent 100 billion more the 4th quarter than the 3rd quarter.
Just more bs from Washington and the libs.

[mocgator]

This is all so predictable.

And many if you laugh at my advocating a personal fiscal exit strategy. This who listen will laugh last.

Inflation is coming. Get ready. The good part is that the inflation will hurt the Obama voters and looter most if all. Enjoy.

Now back to gun control and amnesty...

[g8trjax]

Originally Posted by mocgator

This is all so predictable.

And many if you laugh at my advocating a personal fiscal exit strategy. This who listen will laugh last.

Inflation is coming. Get ready. The good part is that the inflation will hurt the Obama voters and looter most if all. Enjoy.

Now back to gun control and amnesty...

But he's got a 60% approval rating???? That, is a mind bender.

[mdgator05]

Originally Posted by mastoidbone

I started a thread a while ago that recession began in July---and was ridiculed.....DATA folks----follow the data and ignore all else.

DATA was clear---economy stared HUGE slowdown over summer....no one listened....the main credit goes to Hussman and ECRI who called this BEFORE anyone saw it.

http://www.businesscycle.com/

http://www.hussmanfunds.com/

Probably should have waited for the adjustment:

http://online.wsj.com/article/SB1000...googlenews_wsj

The U.S. economy grew slightly in the fourth quarter of 2012—a reversal from an initial report of contraction—as government spending cuts mostly masked fundamentals that point to stronger growth this year.

The nation's gross domestic product, a measure of all goods and services produced in the economy, advanced at a 0.1% annual rate between October and December, the Commerce Department said Thursday. The figure was revised up from an initially estimated 0.1% downturn.

The meager showing last quarter underscored that government spending cuts are slowing the recovery's momentum.

So we are still waiting on that recession. But rest assured, it will eventually come. Just don't go crowing about it when it happens years after you initially predicted it.

[gatorman_07732]

We're growing now

[mdgator05]

Originally Posted by gatorman_07732

We're growing now

Yep. Even in the short term despite massive cuts to government spending, which come out of GDP.

[gatorman_07732]

Originally Posted by mdgator05

Yep. Even in the short term despite massive cuts to government spending, which come out of GDP.

LMAO

[mdgator05]

Originally Posted by gatorman_07732

LMAO

Sorry the numbers don't support your political position.