Economy
Related: About this forumU.S. Economy Shrinks by Record 32.9% Pace in Second Quarter
The U.S. economy backpedalled at an unprecedented pace in the second quarter as the coronavirus pandemic upended the U.S. economy by forcing businesses across the country to close their doors.
The Bureau of Economic Analysis reported Thursday that gross domestic product, which measures the output of the economy, shrank at an annual pace of 32.9% between April and June. Economists polled by FactSet had been expecting the economy to shrink by 34.6%.
Consumption, a key measure of the strength of the economy, drove most of the decline, falling 34.6%, with personal consumption expenditures dropping by 1.1%. The price index, which measures the direction of the prices of goods and services, slipped 1.8%, suggesting deflation took hold during the quarter.
The report provided a grim snapshot of the full impact that widespread disruptions in the U.S. economy caused during the critical second quarter - particularly since responses to the pandemic only began in earnest in the latter part of March.
https://www.thestreet.com/markets/economy-growth-gdp-record-contraction-coronavirus
Newest Reality
(12,712 posts)Last edited Thu Jul 30, 2020, 01:47 PM - Edit history (1)
When the additional UI payment expires, that should fix he problem, ey? Being evicted will really be an incentive to make more purchases, especially ones that are based on discretionary spending. Yup!
Fix the economy by figuratively killing the consumer? Brilliant! It's an incredible plan.
"Consumers? Consumers? We don't need no stinking consumers."
Oh, wait, we just keep pumping tax payer dollars into corporations and big business. Right. They won't even have to sell or provide anything, (what's the incentive when you are on corporate welfare?) and that cuts down on costs and that means MORE PROFITS! Buy back your stocks!!! That's great for the only economy that matters now: the wealthy.
CrispyQ
(36,567 posts)??? I ask in seriousness. Yesterday I read that 30 million people in the US didn't have enough food to eat last week. All the financial angst we went through in April was for naught because we got impatient and reopened too soon. I don't see how what happened in April won't happen again, only this time be much, much worse. ???
Newest Reality
(12,712 posts)progree
(10,948 posts)Link to tweet
Credit: mahatmakanejeeves in the LBN thread on today's GDP report https://www.democraticunderground.com/10142549435