http://www.france24.com/en/20130130...0130_usa_economy_shrinks_growth_spending_cuts
How can this be? The 4th qtr contains the normally lucrative Christmas shopping season!
Well, here is my take on this, as the Govt realizes it has limits on how much M supply they can create and spend, the economy that is based on that creation will naturally contract
Fine
The problem is, 3 yrs of massive debt spending has not stimulated private sector growth to a large degree, in essence it is not functioning properly on it's own accord..yet. And the real troubling part is there are very few moves left to be made to try and stimulate the private sector.
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says right there in your article due to military spending cuts. The inventory growth was due to there not being enough inventory.
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3 yrs of stimulus and yet a Fed spending cut is not made up for by the private sector?
That is a good indicator that policies are not working -
defense industry is pretty much mainly composed of government contracts. Not to mention the winding down of the war. So no, it's not the sign you are thinking it is.
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We'll see, then again if there was a recession tomorrow it would be blamed on reducing spending and not a lack of private sector growth
3 yrs of slow to no economic growth capped off with a small move backwards is a good indicator that current policies are not working, there simply is no other way to put it Lucky. -
except it was growing before this. What do you think will happen when they start trimming the budget? medicaid, medicare all those industries get lots of money from the government. Those will all suffer. There will more then likely not be anything to counter that as you are talking about billion dollar industries.
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Inadvertently you hit on the reason why I put forward the policies have failed
If the stimulus spending had worked, the private sector economy would have grown enough to offset the govt spending decreases, this is how it is supposed to work, and it has not. -
I seriously doubt that. Again you are talking about large industries very much built around the government. Defense especially.
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Private sector is far larger than the public sector Lucky.
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The stimulus was never about improving the economy, it was about keeping from going completely under. The government cannot fix the problem with our economy because they are beholden to the very people that ruined it for their own gain...Wall Street.
Heaven forbid these bastards have their tax rate raised 4 lousy percentage points though. -
yes,but again, how much of a hit do you think defense takes when a war winds down? Now add on budget cuts? There is no way to supplement that loss.
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Entitlements are protected from sequester. Otherwise, sequester cuts would be around 1/3 discretionary and 2/3 entitlements instead of the 100% discretionary. Maybe Obama will try to bring back a grand bargain version of the 400 billion in entitlement cuts of the 26 trillion to be spent on entitlements the next 10 years with his plan to make those all suffer. But doubt this as congressional democrats have repeatedly norquisted this.
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wasn't talking about sequesters.
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With the ACA increasing healthcare spending by about a trillion over next 10 years, what healthcare industry trimming are you talking about?
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