White House predicts slower growth in 2005: FT

[oldhat]

http://news.ft.com/cms/s/5177efba-5075-11d9-b551-00000e2511c8.html

White House predicts slower growth in 2005
By Andrew Balls in Washington
Published: December 17 2004 21:58 | Last updated: December 17 2004 21:58

The White House expects growth to slow next year but remain above the economy's long-term trend rate, and it further predicts lower inflation and slightly slower employment growth.

The administration forecast that the economy would grow by 3.5 per cent in 2005, following 3.9 per cent growth this year.

The New York Federal Reserve published a forecast this week that the trend rate of private-sector productivity growth would be 2.6 per cent over the next 10 years. Including expected labour market growth, that put the trend growth rate for gross domestic product at 3.3 per cent.

That is consistent with the range of 3¼-3½ per cent that some Fed policymakers have referred to, but below some more optimistic private-sector forecasters. Inflation, measured by the consumer price index, is expected to drop to 2 per cent from this year's 3.4 per cent, which was fuelled by the rise in energy prices.

The administration forecasts, which provide the economic framework for next year's budget negotiations, are close to the consensus of private-sector forecasters.

The White House hosted a two-day economic summit in Washington this week, attended by business leaders, academics, lobbyists and cabinet secretaries.

The administration highlighted Social Security and tax reform as second-term priorities, but provided little detail on the policies...

[abelenkpe]

1. And here I thought the bush admin was good for the economy

:eyes:

Here's my prediction: the economy is going to take a huge dive. Workers will be screwed and the top 1% will tell us all to eat cake.

OK, maybe I'm a pessimist.

[GHOSTDANCER]

4. They already bombard us with eat cake comercials on a daily basis.,

Just flip on your tv.... look in you newspaper or magazine..... listen on your phone.... surf the web.... I'm sure they have something you desire.

<>

and P.S. Everything the Bush Cabals touch, turns to shit. Everything

[abelenkpe]

6. yeah

but I value my humanity more. Can't really see myself selling my soul to live that large.

[MissB]

5. Yeah. I mean take whatever they say and subtract about 5%

off of their percentages.

[radfringe]

15. top 1% will tell us all to eat cake.

no - top 1% will tell us to get off out lazy asses and get a job "baking cakes"

so how much slower is the economy going to be? as slow as a two-legged turtle or like a paralyzed snail? how about like molasses running uphill in January?

[stevebreeze]

17. maybe not. according to the BLS real income

is down once again. corporate profits have never been higher. Of course pointing this out IS class warfare, while actually doing passing the legislation to accomplish this is " allowing for freedom in the markets"

[barb162]

24. you are a realist. I this there will be negative growth, a recession

bigtime

[The Zanti Regent]

26. and YOU still have JESUS

even though...

JESUS does NOT put food on your table,
Jesus does NOT pay your bills
Jesus does NOT put a roof over your head
Jesus does NOT heal you when you get sick
Jesus does NOT clothe you
Jesus does NOT provide for you in time of need

How much more will it take before the masses wake up from the bullshit they get from Jesus TV?

[The Backlash Cometh]

2. Expects it to slow?

If it goes any slower we'll be counting back to 1929.

[oldhat]

3. One terrorist attack...

...will send the economy into a tailspin.

[Skittles]

27. are you talking about the one Bush allowed to happen

or the next one?

[VegasWolf]

7. 1929 - that should make the fundies happy.n/t

[abelenkpe]

8. I do believe

the administration is just preparing us for failure. When the economy tanks they will say 'We expected it to slow. Nothing is out of the ordinary. This is not our failure. Look! Over there! Terrorists!'

[The Backlash Cometh]

11. Yes. you're right.

And stupid Americans will accept it. But, will Wall Street? And will American Corporations?

[durablend]

12. It's all Clinton's fault!

[VegasWolf]

9. Canadian mollasses moving faster than this "recovery" n/t

[Bouncy Ball]

10. Totally immature moment but

this line cracked me up:

By Andrew Balls in Washington

Ok I'll go back to acting my age, or close to it now.

[Mabel Dodge]

20. I laughed when you pointed it out...

but my husband tells me that my sense of humor is the same as a 10 year old boy.

[lovuian]

13. Well when the Americans have no jobs or low wage jobs

the world economy slows down!!!

[GoBlue]

14. Well now that's encouraging

'...expects growth to slow next year but remain above the economy's long-term trend rate.

So we can expect future years to be even worse, eh?

[stevebreeze]

18. part of that is to explain the dismal growth expected in the

SS trustee report. I predicts slower growth then we have ever had in any 20 year period for the next 75 years. If the economy grows as fast as it has in the past THERE IS NO SS SHORTFALL.

[dbt]

16. Would this be the same White House that said Iraq would be

a cakewalk? I hope they bring at least the same level of expertise to econo-casting!

:evilgrin:
dbt

[tmooses]

19. Another Friday afternoon garbage dump story. Funny how these ..

"not so rosy outlook" news items always seem to be spoon fed to the media on late Friday afternoons when even less people (if that's possible!)
are watching the news.

[Osamasux]

21. Here's the NYT take on the same story

http://www.nytimes.com/2004/12/18/business/18econ.html

[Demeter]

22. If Growth Gets Any Slower--It Won't Be Growth

In fact, I think there's a lot of lying by statistics going on. Paper growth, not real growth. Real growth is measurable by the eyeball. All I see is shrinkage at home, and growth is something that happens to other countries.

[OnlyInAmerica]

23. If it gets any slower...

It'll be moving in reverse!

[barb162]

25. have you noticed how the analysts keep overforcasting and they are

always being disappointed month after month when the "real" numbers come out. They are always predicting big job numbers, sales numbers, etc. They have to tidy up their models as their models aren't working anymore. Also I notice when the "real" numbers come out, they readjust the numbers down in the next few weeks.

[AmerDem]

28. WOW, I guess this means 2004 was the highlight of

his great economic policies. Through out this election year we heard endless stories on how the economy was so strong and it will be getting stronger. Looking back on 2004 and comparing to their now lower numbers for 2005 I'd say we are really in for some hurt.

[Vidar]

29. "Slower growth" is chimpy's double-speak for "Depression".