4Q12 GDP

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Contracted.

Looking forward to hearing why
a) this isn't B.O.'s fault
b) this can be viewed as a positive
c) we need to increase deficit spending, OR why this has nothing to do with deficit spending

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Technical recovery meet technical recession.

[sonofdaxjones]

It's already been dubbed the most beautiful reduction in GDP in U.S. history.

[Stupid Fitz]

He inherited a mess

[bubbles4ksu]

It's already been dubbed the most beautiful reduction in GDP in U.S. history.

You mean contraction, not reduction.

[sonofdaxjones]

It's already been dubbed the most beautiful reduction in GDP in U.S. history.

You mean contraction, not reduction.

Okay

[bubbles4ksu]

It's already been dubbed the most beautiful reduction in GDP in U.S. history.

You mean contraction, not reduction.

Okay

i agree that it's beautiful though, there has never been a smaller one.

[sonofdaxjones]

It's already been dubbed the most beautiful reduction in GDP in U.S. history.

You mean contraction, not reduction.

Okay

i agree that it's beautiful though, there has never been a smaller one.

The new paradigm:  Contraction is good, as long as it's you know, small.

[Emo EMAW]

He blamed it on lower defense spending.

[bubbles4ksu]

He blamed it on lower defense spending.

Government spending was 1.5% lower for the quarter. 

[OregonSmock]

"Real federal government consumption expenditures and gross investment decreased 15.0 percent in the fourth quarter, in contrast to an increase of 9.5 percent in the third.  National defense decreased 22.2 percent, in contrast to an increase of 12.9 percent.  Nondefense increased 1.4 percent, compared with an increase of 3.0 percent.  Real state and local government consumption expenditures and gross investment decreased 0.7 percent, in contrast to an increase of 0.3 percent."

The reason for the drop in defense spending (or at least a sizable reason) is the war drawdown:

The rest of the economy is actually doing pretty well:

"Real personal consumption expenditures increased 2.2 percent in the fourth quarter, compared with an increase of 1.6 percent in the third.  Durable goods increased 13.9 percent, compared with an increase of 8.9 percent.  Nondurable goods increased 0.4 percent, compared with an increase of 1.2 percent.  Services increased 0.9 percent, compared with an increase of 0.6 percent.   

Real nonresidential fixed investment increased 8.4 percent in the fourth quarter, in contrast to a decrease of 1.8 percent in the third.  Nonresidential structures decreased 1.1 percent; it was unchanged in the third quarter.  Equipment and software increased 12.4 percent in the fourth quarter, in contrast to a decrease of 2.6 percent in the third.  Real residential fixed investment increased 15.3 percent, compared with an increase of 13.5 percent."

So basically, this is exactly what conservatives should want.  The government is decreasing spending, which has lead to a decrease in GDP.  The formula for GDP is quite simple:  GDP = C + I + G + (exports - imports).  Spending cuts and a smaller government will lead to a decrease in GDP, unless that decrease is offset by an increase in the other factors.

[Emo EMAW]

That's a tricky y-axis there.  Why not put it in real dollars or even inflation adjusted dollars?

[john "teach me how to" dougie]

"Real federal government consumption expenditures and gross investment decreased 15.0 percent in the fourth quarter, in contrast to an increase of 9.5 percent in the third.  National defense decreased 22.2 percent, in contrast to an increase of 12.9 percent.  Nondefense increased 1.4 percent, compared with an increase of 3.0 percent.  Real state and local government consumption expenditures and gross investment decreased 0.7 percent, in contrast to an increase of 0.3 percent."

The reason for the drop in defense spending (or at least a sizable reason) is the war drawdown:

The rest of the economy is actually doing pretty well:

"Real personal consumption expenditures increased 2.2 percent in the fourth quarter, compared with an increase of 1.6 percent in the third.  Durable goods increased 13.9 percent, compared with an increase of 8.9 percent.  Nondurable goods increased 0.4 percent, compared with an increase of 1.2 percent.  Services increased 0.9 percent, compared with an increase of 0.6 percent.   

Real nonresidential fixed investment increased 8.4 percent in the fourth quarter, in contrast to a decrease of 1.8 percent in the third.  Nonresidential structures decreased 1.1 percent; it was unchanged in the third quarter.  Equipment and software increased 12.4 percent in the fourth quarter, in contrast to a decrease of 2.6 percent in the third.  Real residential fixed investment increased 15.3 percent, compared with an increase of 13.5 percent."

So basically, this is exactly what conservatives should want.  The government is decreasing spending, which has lead to a decrease in GDP.  The formula for GDP is quite simple:  GDP = C + I + G + (exports - imports).  Spending cuts and a smaller government will lead to a decrease in GDP, unless that decrease is offset by an increase in the other factors.

Conservatives have always been trying to increase the "other factors". Unfortunately, Bush II was not a conservative. Now we have a government that is quickly becoming the driving force of the GDP. Sad.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

 

Guys, the economy is roaring, despite the technical recession. Thanks OregonSmock


Also LOL at the "war drawdown"

[Dugout DickStone]

Guys, the economy is roaring, despite the technical recession. Thanks OregonSmock


Also LOL at the "war drawdown"

Serious question, why is it a bad thing that the gov is trying to cut out of control defense spending? 

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Guys, the economy is roaring, despite the technical recession. Thanks OregonSmock


Also LOL at the "war drawdown"

Serious question, why is it a bad thing that the gov is trying to cut out of control defense spending?

Even if you assume the convoluted graph is accurate, a ~$20B reduction in defense spending this quarter wouldn't have a 0.1 effect on GDP. The economy is dogshit.

As for taking the parrot for the sociopathic obama apologists post at face value, well that's your problem.  Pretty sure the left has used the same shrinking gdp argument to attack conservatives in Europe. Not surprised those attacks remained overseas.

[Dugout DickStone]

I will take any spending cuts I can get.  Cheer up

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I will take any spending cuts I can get.  Cheer up

Probably has more to do with a sequestration that didn't end up happening than actual cuts.  A negative gdp number is a horrible sign and no reason to search out false silver linings.

[mortons toe]

"Real federal government consumption expenditures and gross investment decreased 15.0 percent in the fourth quarter, in contrast to an increase of 9.5 percent in the third.  National defense decreased 22.2 percent, in contrast to an increase of 12.9 percent.  Nondefense increased 1.4 percent, compared with an increase of 3.0 percent.  Real state and local government consumption expenditures and gross investment decreased 0.7 percent, in contrast to an increase of 0.3 percent."

The reason for the drop in defense spending (or at least a sizable reason) is the war drawdown:

honestly, do you know how to read and comprehend this 'data'? Please tell me that you do, so I can call you fos.

[OregonSmock]

"Real federal government consumption expenditures and gross investment decreased 15.0 percent in the fourth quarter, in contrast to an increase of 9.5 percent in the third.  National defense decreased 22.2 percent, in contrast to an increase of 12.9 percent.  Nondefense increased 1.4 percent, compared with an increase of 3.0 percent.  Real state and local government consumption expenditures and gross investment decreased 0.7 percent, in contrast to an increase of 0.3 percent."

The reason for the drop in defense spending (or at least a sizable reason) is the war drawdown:

honestly, do you know how to read and comprehend this 'data'? Please tell me that you do, so I can call you fos.

Do you have any facts of your own to present?  What is it about this data that you don't like?

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

I have a fact to present:  4Q12 GDP -0.1%

Here's another:  4 straight years of record deficit spending.

Here's another: 4 straight years of elevated unemployment . . . declining labor participation . . . record welfare recipients

Completely unacceptable. The complicit are as guilty as their incompetent leader.

[sonofdaxjones]

As I said in another thread, with the acceleration in execustive branch power grabbing by this administration, we can now lay the entirety of the current economic malaise on their lap, they own it.

[OregonSmock]

As I said in another thread, with the acceleration in execustive branch power grabbing by this administration, we can now lay the entirety of the current economic malaise on their lap, they own it.

You're such a clown.  We went to war with Iraq based on a bunch of lies and forged documents, and you accuse the current administration of "power grabbing."  Just admit that you hate liberals and anything President Obama proposes. 

[sonofdaxjones]

As I said in another thread, with the acceleration in execustive branch power grabbing by this administration, we can now lay the entirety of the current economic malaise on their lap, they own it.

You're such a clown.  We went to war with Iraq based on a bunch of lies and forged documents, and you accuse the current administration of "power grabbing."  Just admit that you hate liberals and anything President Obama proposes.

I don't hate liberals, I hate hypocrites . . . and what does the war in Iraq have to do with the current accleration in Executive Branch Power/Power Grab?

NOTHING

[OregonSmock]

As I said in another thread, with the acceleration in execustive branch power grabbing by this administration, we can now lay the entirety of the current economic malaise on their lap, they own it.

You're such a clown.  We went to war with Iraq based on a bunch of lies and forged documents, and you accuse the current administration of "power grabbing."  Just admit that you hate liberals and anything President Obama proposes.

I don't hate liberals, I hate hypocrites . . . and what does the war in Iraq have to do with the current accleration in Executive Branch Power/Power Grab?

NOTHING

How is anyone being a hypocrite?  I would rather have President Obama making decisions at the Executive level than Bush or any of the other Republican nominees of the past few years.  Perhaps we need some Judicial oversight when it comes to the drone program.  I don't disagree with that.  The truth though is that we're dealing with an enemy who has no regard for laws or the legal system.  We've been trying to fight terrorism with two hands tied our backs.  My personal opinion is that the drone program is a better alternative than invading sovereign countries like Iraq and putting American troops on the ground.  If that make me a hypocrite, I will wear that badge proudly.