U.S. economy grew 6.9% in fourth quarter www.marketwatch.com/story/coming-up-u-s-fourth-quarter-gdp-1…
The U.S. economy sped up toward the end of 2021 before a late omicron surge, expanding at an annual 6.9% pace as consumers spent more and businesses stocked back up.
Economists polled by The Wall Street Journal had forecast gross domestic product to rise by 5.5% in the fourth quarter. GDP grew a slower 2.3% in the third quarter. The figures are adjusted for inflation.
Aided by massive government stimulus spending, GDP increased by 5.7% for the full year. That’s the biggest gain since 1984.
It’s truly amazing how people will spend when you give them free money to spend. (The Covid helicopter money.) And if you don’t care about government deficits. Or inflation, since the added demand did not add supply.
It’s truly amazing how people will spend when you give them free money to spend. (The Covid helicopter money.) And if you don’t care about government deficits. Or inflation, since the added demand did not add supply.
Wendy
===============================================
You sound like a deficit hawk.
In 2020 you said this was great and necessary for our economy not to collapse. When the stimulus was authorized by Congress, it was predicted that we would have a deficits and inflation issues later. Now you complain about the issues because the predictions came true.
But in the big picture our economy is doing well and we will deal with deficits and inflation issues as evidenced by the Fed actions.
<When the stimulus was authorized by Congress, it was predicted that we would have a deficits and inflation issues later. Now you complain about the issues because the predictions came true. >
Larry Summers predicted inflation. Most other economists did not predict inflation.
It doesn’t matter what I think about the policies since I can’t affect them. What matters is being honest about the consequences to be able to invest in the changing economy.
It doesn’t matter what I think about the policies since I can’t affect them. What matters is being honest about the consequences to be able to invest in the changing economy.
Wendy
==========================================
So we should take your posts with a grain of salt. OK!