Wednesday, August 11, 2010

Economic growth estimates lowered . . . again

The government’s preliminary estimate for economic growth in the second quarter is likely to be revised substantially lower.

This preliminary estimate of gross domestic product growth, which was released on July 30, reported that the nation’s output grew at an annual rate of 2.4 percent in the spring. This tepid growth was nothing to write home about, since it was a big step downward from growth rates in the previous two quarters. (The economy grew at an annual rate of 3.7 percent in the first quarter of the year, and 5 percent in the last quarter of 2009.)

But even that 2.4 percent annual rate is now looking too rosy.

. . . Right now it’s looking like second quarter G.D.P. growth was only half as big as initially estimated.

Growth was only half as big as initially estimated - - only 1.2% rather than 2.4%.

I guess this means that on even numbered days, we'll be told the awesome stimulus plan worked awesomely, and, on odd numbered days, we'll be told we're in the worst crisis since the Great Depression and we need even more corporate bailouts and federal deficit spending. And then, Obama will give another juvenile talk about pulling the truck out of the ditch by shifting into D instead of R and some other ridiculous nonsense.

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