The cliche glass half full or half empty applies and there are enough numbers to make it all look like a glass puzzle rather than something to drink out of.
The. U.S. economy 'summed' 5.9 percent GDP between 2007 Q4-2010 Q4. To be fair add 1.8 percent to that for Q1 2011 making the total since Q1 2007 6.7 percent. Yet this doesn't really represent GDP growth just like 10 percent of $14 trillion isn't the same as 10 percent growth on $13 trillion. For example, in the graph below, Q3 2009 shows an 'increase' of 1.6 percent. Is this an increase over negative .7 percent? If it is the actual GDP graph is an illusion.
The. U.S. economy 'summed' 5.9 percent GDP between 2007 Q4-2010 Q4. To be fair add 1.8 percent to that for Q1 2011 making the total since Q1 2007 6.7 percent. Yet this doesn't really represent GDP growth just like 10 percent of $14 trillion isn't the same as 10 percent growth on $13 trillion. For example, in the graph below, Q3 2009 shows an 'increase' of 1.6 percent. Is this an increase over negative .7 percent? If it is the actual GDP graph is an illusion.
In any case was still in the right direction for the last 8 quarters, but the source of that growth was in part stimulated by massive government spending in 2009-2010, which is presumably about to be curbed by the 2012 budget and the forecasted end of QE2.
Personal expenditures and exports accounted for most the economic growth in Q4 2010. If a stronger dollar emerges in the near future, it could mean potentially shrinking exports and lower federal or central bank spending would potentially deflate consumer spending and GDP growth. Steady inflation won't hurt but not if economics refers to steady means as excess of frozen inflation adjusted payrolls.
Source: U.S. Congress Joint Economic Committee
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