US economy grows at fastest rate in nearly two years

https://www.bbc.com/news/business-67229919

Despite constant new threads trying to show the economy is bad, the reality is that the economy is going well. Very well.

In fact, better growth than at any point in the last presidency.

 

It’s overheated despite of the best efforts to cool it down. There’s gonna be bad news for the stock market and home buyers because the Fed will raise the rates again.

 

Somehow, it seems that the people haven't gotten the message form the Trump lovers that the average consumer is in dire straits. It seems like consumers keep spending. From what I can tell at looking at packed restaurants, booked hotels, etc., consumers still have disposable money to spend. I agree that there will be another rates hike by the Fed. That's probably why the stock market is down today. The anticipated rate hike is worse for stocks than a rapidly growing economy.

 

I'm not experiencing any bit of that. For the last year, I've had to use my credit card to buy effing groceries. Now it's maxxed out, and I have less than $100 to feed myself between now and the end of November.

There is zero growth in my bank account.

 

That is true, in the last couple of years, my 401k/IRA are flat, despite me pouring money into them. I am hoping that it will pay dividends when the next growth spurt comes, but if you are living on SS/your 401k, then times are not easy. Luckily, I have 6-8 years until retirement. That's why I over save, so I weather a couple of years of zero or negative returns.

 

The US has had arguably the best economic recovery from COVID than any other country. Our unemployment rate is where it was before COVID, our overall jobs and GDP are higher, and our inflation is among the lowest in the world. Lower than the UK, lower than the EU, lower than Australia, lower than New Zealand, and lower than Canada.

We've been through the greatest global crisis since WWII, and like the post WWII recovery, we seem to be coming out of it on top in comparison to the rest of the world

 

Prices remain high. Wages went up at the low end of the scale, but the middle and upper areas did not keep pace. That hurts the American middle class.

All that added together with the dollar not spending like it did just three or four years ago is hurting the middle class in a very big way.

Unfortunately, our government is letting Social Security crumble. That brings fear, rightfully so after people pay into a retirement system for their entire lives.

And the other government created retirement system, the 401K, is crumbling due to inflation and the interest rate increases crushing the markets.

Which all demonstrates a very unstable economy.

 

You realize that’s evidence of inflation right? They spent more money not because they’re buying more goods but because the costs of the goods they normally buy has increased.

Do y’all even know what you’re posting?

 

Our inflation is not even REMOTELY the lowest if you calculate it in the same way those other countries do. Our inflation appears the lowest because the government keeps exempting numbers from our inflationary statistics.

 

For instance two of our biggest price increases are food and gasoline which the core index strips out of the numbers in the US. But they don’t strip them out in Australia or the UK. If we included food and gasoline like Australia and the UK does our inflation would be either at the top or top 2 or 3.

 

Wages are rising faster than inflation.



https://tradingeconomics.com/united-states/wage-growth

Are you saying you vote Republican because they protect social programs better than Democrats?

 

Before writing here, do you do a minimum of research?

Inflation rate:

UK: 6.7%
France: 4.9%
Canada: 3.8%
Germany: 4.5%
Australia: 5.4%

USA.... 3.7%

https://tradingeconomics.com/country-list/inflation-rate

 

Not exactly. Wages are growing almost 2 points faster than inflation, which increases peoples purchasing power and it is reflected in consumer spending stats.

I think its the other way round. All countries exclude things, and it seems EU excludes the biggest driver of all (housing), and if they included that, their stats would be far worse than it seems. Florida inflation is still sky-high because of housing. So, yes, US is ahead of the rest of the world.

 

When Trump was promising 5-5% growth (that he never achieved) that would have been the sign of a strong, growing economy. But when Biden actually achieves it, it’s bad news?

How partisan can you get?

 

You do understand that growth due to increased productivity is good and that growth due to increased inflation is bad. Right? But they’re both growth.

For instance if, in the same month, you have that the economy as grown 3% and yet your job increases were WELL below expected and almost entirely came out of the service sector… that is a sign of growth due to inflation and NOT productivity.

Now if you have a 3% growth increase and you have job growth of 15% above expected. Now you’re talking about growth due to productivity and not inflation.

 

Some things never change. Obama's GDP was "anemic" and when Trump routinely hit the same figures it was "greatest economy ever". Same with adding jobs. Trump averaged less jobs added, and yet that was somehow "best employment in history of mankind".

As for consumer spending, - when people spend more, it gives corporations an incentive to increase prices which increases inflation. When people spend less, they are forced to lower prices.

 

Furthermore when you combine the growth and lesser than expected job increases with the fact that the fed has been INCREASING rates, the economy should be slowing down, not growing. The fact that it’s still growing means that the fed hasn’t gotten inflation under control and more interest rate hikes will be required.

 

That’s the because the VAST majority of Obama’s increases were due to stimulus packages creating part time and temporary jobs. Which do not help the economy long term.

 

You realize that the 4.9% GDP growth is REAL growth, i.e. after inflation is accounted for? Do you?

 

You are just making that up. Like @sec , you refuse to believe or accept any good news about the Biden economy.

 

Yes. The economy is so hot that despite of all the rate increases it is still growing fast. You would think its a good problem to have, but its not, since they have to raise rates even more, which will make mortgage rates and all loans more expensive and Wall Street won't like it either.

There was only one stimulus package right off the bat to recover from the 'great recession', and we did recover. And no, they were not mostly temp jobs. Its gets old hearing people trying to downplay good jobs numbers with such comments.

Yes, GDP is inflation adjusted.

 

That’s irrelevant when most of your growth 68% is coming from consumer purchasing and ALL of that is from the service sector and spending on goods have decreased AGAIN.
Why do you think the markets didn’t move? Because spending by the consumer in the service sector is not going to impact monetary policy and as such rates will continue to increase.

In fact increased spending in the food service sector is a CLEAR indication of inflation because people can’t afford their groceries but they can afford Applebees and Chinese takeout because they purchase low quality meat and vegetables and spices at wholesale prices.

 

At this point the market celebrates only bad news, and this was not what they wanted to see. As for "where do we spend our money", - more than 50% is spent on housing and transportation (cars). 12% is spend on food, and about the same on insurance and pensions. So, thats a "no" to your claim about the service sector.

 

Wow this car is driving so well! Best performance in the last 2 years!

What was it doing 2 years ago?

Rotting in a field.

What's it doing now?

Well, the wife backed into it by accident and now it's rolling into the pond.

Shouldn't you stop it?

Nah. We're getting a divorce and that'll be her half.

 

I agree and they have to or the bubble will be devastating. Even with the growth, we are seeing a massive decline in peoples ability to pay their bills, feed their family and put gas in the car.