Several of us a couple of months ago could feel there was a recession.
https://finance.yahoo.com/news/q1-us-gdp-gross-domestic-prod…
headline
US GDP unexpectedly contracted at a 1.4% annualized rate in Q1
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https://www.nytimes.com/2022/04/28/business/economy/us-gdp-q…
Note ‘lower government spending’ shows the power at this point in the cycle of demand side policies to grow the GDP v supply side monetary policies by the FED were in place and caused a rapid rise in inflation.
NYT
snippet
The decline was mostly a result of the two most volatile components of the quarterly reports: inventories and international trade. Lower government spending was also a drag on growth. Measures of underlying demand showed solid growth.
Lower government spending was also a drag on growth.
One can hope that government spending was lower than a year ago. The American Rescue Plan goosed federal spending by 11% and non-defense went up by 41%.
DB2
One can hope that government spending was lower than a year ago.
DB2,
Nominally you are correct. Year in and year out if that is your only position lets fork things over to China with slow US GDP growth.
It is a dynamic based on taxing the wealthy and using the money to grow the US economy. Others will cry this is for welfare. Yes their own bloody welfare not that of the poor. Targeted welfare is not the goal. US GDP growth is the goal. The bill that was rejected by Manchin was on the larger side but three quarters of it even Manchin wanted because of the growth it would bring the US economy over the next ten years.
The numbers during the pandemic fiscal and monetary are not useful in discussing normalizing the US economy.
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The numbers during the pandemic – fiscal and monetary – are not useful in discussing normalizing the US economy.
True.
DB2