Page 3 of 43 FirstFirst 1234513 ... LastLast
Results 21 to 30 of 422

Thread: Economy shrinks for first time in 3 1/2 years[W: 395]

  1. #21
    is totally not a robot.
    Juiposa's Avatar
    Join Date
    Jan 2011
    Location
    Ontario
    Last Seen
    03-22-15 @ 10:58 PM
    Gender
    Lean
    Centrist
    Posts
    1,591
    Blog Entries
    1

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by tessaesque View Post
    Your statement doesn't create an argument that justifies the decline in GDP over the 4th quarter. While in theory your point may be correct in some circumstances, it has nothing to do with what happened here. The defense spending cuts were $497 billion over 10 years. That means that we're looking at a total of $49.7 billion-ish for the next 12 months, and NOT all at once during the 4th quarter...(in fact, if you divide it by 4 you end up with $12.425 billion over three months).

    Our GDP is over $13 trillion. How does $12.425 billion (ish) in defense spending cuts (some of which would have left the U.S. without entering into our economy anyway) make up the "bulk" of a 2.6% loss in growth?

    It doesn't, and I admit I'm wrong in the context of this recession. But my statement still stands for any subsequent tax hikes and spending cuts.
    "After all, you know, there are worse things in life than death. I mean, if you've ever spent an evening with an insurance salesman, you know exactly what I mean."
    -Woody Allen

  2. #22
    is totally not a robot.
    Juiposa's Avatar
    Join Date
    Jan 2011
    Location
    Ontario
    Last Seen
    03-22-15 @ 10:58 PM
    Gender
    Lean
    Centrist
    Posts
    1,591
    Blog Entries
    1

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by DVSentinel View Post
    Not much. It was the introduction of the capitalist zones and foreign investment that spurned their growth. A lot of that growth is predicated upon the fact that labor is so much cheaper there. Their previous socialist economy left them in such poverty that they now that they have dropped it, they are seeing major growth. They have to grow, since they couldn't really shrink anymore and with the labor cost differential with the rest of the world and their allowing these new zones, it is only natural that they grow. Take away the labor cost differential, and then see where they would be. Even their growth though is totally dependent upon exports to other parts of the world, internally, they cannot support growth yet.
    You seem to write this with a tone that you assume I disagree with you. Well, I don't, I agree with you totally. You though, need to stop making assumptions.
    "After all, you know, there are worse things in life than death. I mean, if you've ever spent an evening with an insurance salesman, you know exactly what I mean."
    -Woody Allen

  3. #23
    Sage

    Join Date
    Oct 2007
    Location
    New York
    Last Seen
    Yesterday @ 12:40 PM
    Gender
    Lean
    Centrist
    Posts
    11,691

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by tessaesque View Post
    We didn't cut spending OR raise taxes in the 4th quarter of 2012.
    Tessaesque,

    While it is true that no policy changes in spending or taxation were implemented during the 4th quarter, the early GDP statistics show that there was a modest dip in government spending. From the report:

    Government Spending:
    Q3: $2,503.1 billion
    Q4: 2,460.6 billion
    Change: -$42.5 billion

    The Federal Government Component:
    Q3: $1,045.9 billion
    Q4: 1,004.4 billion
    Change: -$41.5 billion

    Government spending does not occur equally across the months and quarters. It fluctuates and those fluctuations likely explain the Q4 outcome vs. Q3. Most of the fluctuation was the result of the timing of defense-related expenditures, which declined $42.4 billion during Q4.

    Gross private domestic investment also fell modestly, driven by a sizable drop in the change in non-farm inventories, possibly due to uncertainty concerning the fiscal cliff issue? A rebound in those inventories this quarter (2013 Q1) would suggest that such uncertainty drove the outcome. Continued weakness there would suggest broader factors and that would be a more worrisome situation.

    The trade imbalance also grew, but exports (reflecting some Overseas economic headwinds) and imports both declined.

    Also, this is just the first report for Q4. Subsequent revisions might yet erase the small dip in GDP, but the report will remain a weak one. The next report will be released on February 28.
    Last edited by donsutherland1; 01-30-13 at 10:29 AM.

  4. #24
    Matthew 16:3

    Join Date
    Jul 2008
    Location
    Everywhere and nowhere
    Last Seen
    06-24-17 @ 05:05 PM
    Gender
    Lean
    Progressive
    Posts
    45,603

    Re: Economy shrinks for first time in 3 1/2 years

    A 40% reduction in defense spending will have some short-term economic consequences. Any cuts in spending would have this kind of consequence as less money being put into the economy will obviously affect the economy.

    We can't have our cake and eat it too. We need to deal with short term detriments in order to see long term gains. If we want to address the deficit in any serious fashion, it means we'll all have to tighten our belts. Rich, poor and everyone in between. There's no magic pill solution that will make this painless.
    Tucker Case - Tard magnet.

  5. #25
    Sage
    KevinKohler's Avatar
    Join Date
    Oct 2011
    Location
    CT
    Last Seen
    Yesterday @ 09:58 PM
    Gender
    Lean
    Undisclosed
    Posts
    15,977
    Blog Entries
    1

    Re: Economy shrinks for first time in 3 1/2 years

    How about our economy is still down because many many large companies in our country are still imposing wage freezes?

    Let's see....frozen wages for the past 5 years or more, plus a devaluation of the dollar to the tune of just under 3% per year...equals....what? Why, less spending power to those trapped within those wage freezes. And if people buy less ****, less **** gets sold. If less **** gets sold, less money is being made.


    Now for the real question.

    Why are companies STILL imposing wage freezes?
    Quote Originally Posted by calamity View Post
    Reports indicate that everyone knew he was hauling a bunch of guns up there. But, since you brought it up, there's something which should be illegal: guns that breakdown.

  6. #26
    Sage

    Join Date
    Mar 2012
    Location
    Republic of Florida
    Last Seen
    Today @ 12:18 PM
    Gender
    Lean
    Libertarian
    Posts
    14,026

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by Conservative View Post
    Not that results matter to the Obama cult but further signs that we are on the wrong path and that Obama doesn't have any interest in growing a private sector economy. The new normal today is high unemployment, high debt, massive dependence on the govt, and low economic growth. Congratulations to those of you who believe it is the role of the govt. to provide cradle to grave coverage funded by the rich.

    US economy shrinks 0.1 percent, 1st time in 3 1/2 years | Fox News
    In before liberals blame Bush for this recession.

  7. #27
    Banned
    Join Date
    May 2011
    Location
    Where they have FOX on in bars and restaurants
    Last Seen
    09-14-14 @ 02:09 PM
    Gender
    Lean
    Independent
    Posts
    14,700

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by KevinKohler View Post
    How about our economy is still down because many many large companies in our country are still imposing wage freezes?

    Let's see....frozen wages for the past 5 years or more, plus a devaluation of the dollar to the tune of just under 3% per year...equals....what? Why, less spending power to those trapped within those wage freezes. And if people buy less ****, less **** gets sold. If less **** gets sold, less money is being made.


    Now for the real question.

    Why are companies STILL imposing wage freezes?
    Because they are trying to survive in this crappy obamaconomy.

  8. #28
    Sage
    Conservative's Avatar
    Join Date
    Dec 2009
    Location
    Houston, TX
    Last Seen
    Today @ 12:10 PM
    Gender
    Lean
    Conservative
    Posts
    67,270

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by Juiposa View Post
    Never said I wanted to live China. Nor do I. You asked for a socialist country that met your criteria, and I gave you one.
    So that is your definition of success? Why is it that socialists and liberals have such low standards? If you don't want to live there how can that be a successful economy?

  9. #29
    Sage

    Join Date
    Mar 2012
    Location
    Republic of Florida
    Last Seen
    Today @ 12:18 PM
    Gender
    Lean
    Libertarian
    Posts
    14,026

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by KevinKohler View Post
    How about our economy is still down because many many large companies in our country are still imposing wage freezes?

    Let's see....frozen wages for the past 5 years or more, plus a devaluation of the dollar to the tune of just under 3% per year...equals....what? Why, less spending power to those trapped within those wage freezes. And if people buy less ****, less **** gets sold. If less **** gets sold, less money is being made.


    Now for the real question.

    Why are companies STILL imposing wage freezes?
    Because the future is uncertain, and they have not seen an increase in profits to offset the costs they will be assuming as a result of inflation, obamacare, higher taxes, and tons of new regulations.

  10. #30
    Sage
    KevinKohler's Avatar
    Join Date
    Oct 2011
    Location
    CT
    Last Seen
    Yesterday @ 09:58 PM
    Gender
    Lean
    Undisclosed
    Posts
    15,977
    Blog Entries
    1

    Re: Economy shrinks for first time in 3 1/2 years

    Quote Originally Posted by sawyerloggingon View Post
    Because they are trying to survive in this crappy obamaconomy.
    If by "survive", you mean, record profit margins, and 50% or higher increase in executive compensation, then...yes. They are struggling to "survive".
    Quote Originally Posted by calamity View Post
    Reports indicate that everyone knew he was hauling a bunch of guns up there. But, since you brought it up, there's something which should be illegal: guns that breakdown.

Page 3 of 43 FirstFirst 1234513 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •