Thursday, August 28, 2008

Don't Vote for McSame!

...because we certainly don't want any more of this:
WASHINGTON -- The U.S. economy was much stronger in the spring than first thought because of better exports and less inventory liquidation by businesses, according to a government report that surprised economists.

Gross domestic product rose at a seasonally adjusted 3.3% annual rate April through June, the Commerce Department said Thursday in a new, revised estimate of second-quarter GDP.
McSame represents 4 more years of this kind of economic devstation.


Citizen Grim said...

K T Cat - every blog I visit on the internet, I see your name in the comments somewhere! You're ubiquitous!


Truth Teller said...

A third party vote or no vote is a vote for Obummer.

Crazed Chinman said...

While I agree that GDP is the biggest economic indicator, there is more to the economy than just GDP, and you have to factor in why GDP is up or down to see where the economy is going.

GDP was up 3.3% for the quarter. So lets look at the makup of why GDP was up.

Consumer spending was up 1.7%. This wouldn't have anything to do with govt rebate checks padding pockets? Forget saving or paying off debt, lets spend some money, its your patriotic duty.

The biggest factor of GDP is the difference between exports minus imports. Exports were WAY up this quarter. 13.2%. This is mainly because other countries were taking advantage of the weak US dollar. Imports were also down. In fact this was the smallest trade deficit in 8 years.

So while yes its good that GDP is up for the quarter considering the economy actually SHRANK in the final 2 months of 2007 and was up a meager .9% in the first quarter of this year, its important to look at the big picture.

Even the Fed Chairman Bernake warned that the economy will be weak for the rest of the year.

The nations unemployment rate is at 5.7% for July, a 4 year high. 463,000 jobs have been eliminated this year. Foreclosures are still piling in at record setting paces, and wall street is still down overall. Builders and businesses are also cutting back on spending and construction.

The quarter is already off to a weak start as personal incomes fell .7% for July. How can we expect consumer spending to keep up?

So the point of my comment is that you have to look at the big picture when looking at the economy.