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Nye Bevan

(25,406 posts) Tue Dec 23, 2014, 10:47 AM Dec 2014

US economy grows incredible 5% in third quarter; Dow hits 18,000

Evidence is mounting that the U.S. economy is kicking into high gear. Gross domestic product soared at 5% in the three months ended September 30 on an annualized basis, the government said on Tuesday.

To put that in perspective, it's the strongest quarter of growth since 2003. "Other than the first quarter's weather-induced contraction, there's no doubt the economy has been great this year," said Dan Greenhaus, chief global strategist at BTIG.

Investors cheered the news, sending the stock market to record highs with the Dow crossing 18,000 for the first time ever.

Growth came across the board with business investment, consumer spending, housing, exports and government spending all showing signs of strength. Feeling more confident, consumers ramped up their spending to a healthy pace of 3.2%, compared with previous estimates for 2.2%. With gas prices remaining so low, many expect that trend to continue through the holidays.

http://money.cnn.com/2014/12/23/news/economy/us-gdp-economy-5-percent-growth/index.html?iid=mkt_SF_news

What a disaster President Obama has been.

5 replies

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Highlight:

US economy grows incredible 5% in third quarter; Dow hits 18,000 (Original Post) Nye Bevan Dec 2014 OP

*Void in Kansas tridim Dec 2014 #1

Finally. leftyladyfrommo Dec 2014 #2

As long as the gains from that productivity go to the one percent and Karmadillo Dec 2014 #3

Stiglitz on how to prevent this inequality from worsening. Karmadillo Dec 2014 #4

Guess what consumers spent more on? econoclast Dec 2014 #5

tridim

(45,358 posts)

1. *Void in Kansas

Reply to Nye Bevan (Original post)

Tue Dec 23, 2014, 11:14 AM

Dec 2014

I can't believe Obama made all those Kansans vote for the Koch candidate.

leftyladyfrommo

(18,869 posts)

2. Finally.

Reply to Nye Bevan (Original post)

Tue Dec 23, 2014, 11:42 AM

Dec 2014

I wonder if it will ever get good enough that us older folks can find decent work - something better than a sacker at Walmart.

Karmadillo

(9,253 posts)

3. As long as the gains from that productivity go to the one percent and

Reply to Nye Bevan (Original post)

Tue Dec 23, 2014, 12:04 PM

Dec 2014

not to the rest of us, I don't think Obama or any Democrat will get the kind of credit they would like. Until we have some kind of a New Deal, people will rightly be unmoved by productivity numbers that aren't reflected in their paychecks, their communties, and their children's hopes.

http://www.motherjones.com/politics/2011/06/speedup-americans-working-harder-charts

YOU HAVE NOTHING TO LOSE BUT YOUR GAINS

Productivity has surged, but income and wages have stagnated for most Americans. If the median household income had kept pace with the economy since 1970, it would now be nearly $92,000, not $50,000.

Karmadillo

(9,253 posts)

4. Stiglitz on how to prevent this inequality from worsening.

Reply to Karmadillo (Reply #3)

Tue Dec 23, 2014, 02:24 PM

Dec 2014

No reason a FDR Democrat couldn't run on a platform created from these ideas. The one percent and their media hounds would yelp, but voters would love it.

http://www.huffingtonpost.com/lynn-parramore/joseph-stiglitz-on-why-th_b_6354948.html

<edit>

LP: How can we prevent inequality from getting worse?

I divide it into two parts, what can we do to reduce inequality of before-tax and transfers income and what can we do to improve the after-tax and transfers income. The first part is things like higher minimum wages, stronger unions, better education, and stronger enforcement of anti-trust laws and corporate governance laws. Those are the kinds of things that are likely to improve the before-tax and transfers income. The second part is addressing things like capital gains taxes, the preferential treatment that mainly benefits people at the very top, and better redistributive policies. Those would help the after-tax and transfers income become more equal.

econoclast

(543 posts)

5. Guess what consumers spent more on?

Reply to Nye Bevan (Original post)

Tue Dec 23, 2014, 03:12 PM

Dec 2014

Healthcare.

"....consumers ramped up their spending to a healthy pace of 3.2%, compared with previous estimates for 2.2%"

Healthcare spending accounted for more than half that increase.

Are we looking at consumers stuffing healthcare spending into 2014 before Obamacare's higher deductibles impact employees of large firms in 2015?

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