GDP is ONE indicator of economic performance- economy is not "blistering"

[_Wayne_]

Every headline today that reads, "Economy Grows at Fastest Pace Since 1984" or "US economy bolts to 7.2-percent growth pace, 19-year high" is a distortion, misleading people to believe the economy is back on track.

Gross Domestic Product is just one way to gauge a country's economic position. I learned that much in Eco 101 at my community college for $37 per credit hour-which is why people like "JEANNINE AVERSA, Associated Press Writer (see link below)" should be fired for bias and/or ignorance and incomptence. Other economic indicators such as unemployment, Gains/Losses in Wages, Budget Deficits/Surpluses, Interest Rates, Stock Market, Poverty levels, are not improving. Our budget deficit is so enormous, inflation will probably pose a problem for Bush before Nov 04.

This is still a very sick economy. The gap between have and have nots is widening. Bush is the first president in 50 years to have not created a single job. The Dow Jones is still under 10,000.


http://story.news.yahoo.com/news?tmpl=story&u=/ap/20031030/ap_on_bi_go_ec_fi/economy_5

[livinontheedge]

1. GDP growth is a major, major, major economic indicator.

For example, the lack of GDP growth is how you know when you are in a recession. I was afraid this would happen. The Fed's lowering of interest rates and the Bush tax cuts have given a big lift to the economy right before the election. When joblessness starts declining, the economy will no longer be a "big" political liability for Bush. BUT, all hell could break loose if we have another 9-11.

[_Wayne_]

3. GDP is a general, comprehensive indicatator

GDP can grow and grow, but so can inflation and unemployment, and budget deficits. Our children will be paying interest on today's deficits, because the Bush tax cuts bankrupted the treasury. That's a bad economic indicator.

The economy is much bigger than GDP. For AP and Reuters to exchange "GDP" and "economy" as if they are the same is unethical and representative of bias

[JBolt]

4. Afraid

I was afraid this would happen. The Fed's lowering of interest rates and the Bush tax cuts have given a big lift to the economy right before the election.

Fearful of an improving economy? I guess you would pefer a continual decline in the economy, and maybe even a collapse for political gains.

I may be a democrat, but I do not wish economic hardship and disaster on the American people to gain a political and electoral advantage.

And what do you mean the "tax cuts have given a big lift to the economy." All I have heard from our side for 3 years is that tax cuts destroyed the economy. Or were those lies?

[Selwynn]

5. I absolutely agree on that. (nt)

[JBolt]

7. Quick question

I have been a lurker for a lengthy time and am a relatively new poster as you can see by my post count. I have always wanted to know what the "NT" thing in a post means. I have never seen it explained. Thanks!

[Selwynn]

9. "no text" -- Welcome to DU!

[JBolt]

13. Thanks

thanks for the rapid response.

[CWebster]

10. no text

would be my guess, but I don't keep up on all the terminology.

[catmandu57]

14. NT

shorthand for no text or message

[CWebster]

8. if it was legitimate

but under the circumstances it would be of no surprise to anyone that it is being manipulated for those same political gains.

It isn't that folks want economic hardship, it is they recognize those hardships exist independently of indicators and are wary of the rosy claims.

[HFishbine]

11. "I may be a democrat"

or not.

[JBolt]

15. I guess

to be a "real democrat" one must hope for bad economic news at this time for political gain.

Sorry, I will never hope for or wish economic ill for America.

[Selwynn]

18. Oh my god - shut up.

The guy criticizes a tone that made it sound like we should WISH economic misforune and joblessness on real people just for political gain and what's your response -- to make a jab at whether or not he's a democrat?

Brilliant.

"Wow, you don't treat the flesh and blood suffering or real people as a political manipulation device? You must not be a democrat!" :eyes:

[livinontheedge]

12. I've never said tax cuts don't help the economy . . . in the short run.

I like the idea of tax cuts to stimulate the economy . . . short term. I did argue till I was blue in the face that Bush's tax cuts could have been much better targeted to provide even greater stimulus to the economy. However, in the longer run, rising interest rates (caused by a rapidly growing deficit and the crowding out of investment capital) could choke off economic growth and result in catastrophic decline. The trick is to reduce the deficit as a percent of GDP to avoid that disaster.

[JBolt]

16. Never said you did

Never said you did.

[zoidberg]

17. Bad double standard here

If Gore had become president and been hit by a recession right away (which would have happened no matter who was president), and then two and a half years later the GDP grew at 7.2%, every single person here would be singing the praises of the great economy.

[diplomats]

21. True

but it's no secret we can't stand Bush, so we want him to lose in 2004. That's not the same as wishing for the American people to suffer under a bad economy.

[diplomats]

22. I think our biggest complaints about the tax cuts were:

1) how they were distributed and 2) what they've done to the deficit.

[JBolt]

23. What amount

of the current budget deficit is accountable to the tax cuts?

[diplomats]

25. I don't know exactly

my basis for saying that is pretty elementary: If you cut taxes, you're decreasing the amount of revenue the government takes in. Now, a growing economy should increase tax revenues, but the economy hasn't been doing that up till now.

[West Coast Democrat]

19. Unemployment Rate Will Increase Before It Significantly......

Decreases. That's because if long-term unemployed perceive the economy as improving, they will enter the job search once again, and their numbers will have to be counted again. The unemployment rate has only appeared to be stabilizing in recent months because so many longterm unemployed simply stopped looking for work, and dropped off the rolls.

[Spazito]

2. I totally agree with you!

There is a serious disconnect going on, and it is deliberate, imo. When you factor in the growing credit purchases vs cash, re-mortgaging to try and pay that credit debt, the job losses due to downsizing and outsourcing, the picture is that of a big bubble that will burst and it won't be pretty.

[denverbill]

6. 7% growth, from what?

Quarterly growth may well be at 7%, however, what the hell kind of accomplishment is it really?

This year, one mutual fund in my 401k is up 46% year to date. That's pretty damned good, but considering it's still less than 1/2 the value it was before Bush came into office, who the hell cares?

The economy is in such a shitter that 7% annualized growth for one quarter doesn't even get us CLOSE to where we would have been if the economy had been growing at 3% all along. My bet is it will be revised downward as well.

[RichM]

20. You're basically right. Here's a simple way to look at it -

Suppose a country's economy really did expand at a 7% rate for a quarter (or a year, or 5 years). But suppose almost ALL the income gains went to the wealthiest 1% of the population. How much good does that do the other 99%?

Furthermore, this number is just for 1 quarter. Average growth of 3% every quarter since 2000 would be much greater growth than what has actually happened.

When you write, "JEANNINE AVERSA, Associated Press Writer should be fired for bias and/or ignorance" -- The sad truth is that she would be fired if she DIDN'T do this sort of thing. It's important to the propaganda campaign that's ALWAYS being waged in a capitalist economy, to always be pounding it into the heads of people that "growth is soaring, the economy is ROARING BACK," etc. Just like in '1984' when the "news" would celebrate that chocolate rations were about to be raised.

[nolabels]

24. Gross Domestic PRODUCT (GDP)

More Gross Domestic Propaganda for an unsuspecting populous. I will mark this day as the launch of Multinationals to get * another appointment. They have to try and prop this dude up; they know they will not have that much of an easy going with an alternative. A business community that is another interregnal part in this web of this government / military / prison complex makes me suspicious. There must be some up kick, but is it real and sustainable or is just, cooked books, hype and few other flukes. Out here in Southern California things don’t look that great. Any clues on World GDP, is it really measurable?

This whole story has to be major bullshit somewhere, with all the work they have shipped overseas, to fall or flat nature of the dollar, to the improperly factored inflation rate. Interest rates have stayed stagnant which are also good indicators of no real economic growth. This seems just like a lot of bunk, other than lots of more homes built what could this be based on, people picking up more debt because of refies on homes on which a big bubble has been built up?

People are really desperate for good news and I think they are lighting a match and trying to start a fire with this. Pump and dump, get some more fools to buy into it so they sell theirs and get out? Who knows, with parts of the government giving out more falsehoods than truth, how could anybody believe any of it? Does anybody feel financially better off than they were 3 years ago? Is there a Poll on DU somewhere? Not that I like bad news, it's just that I like real and true News and I have not seen a whole lot of it coming out lately

Lastly is GDP tied to a Quality of Life Index for an average person?