Final GDP reading shows US economy shrank 0.6% in the spring, cementing start of recession

[vegas giants]

We aren't talking GLOBAL inflation we are talking about the US recession and you still haven't answered the direct question, what other country in the world has 2/3 of its GDP on consumer spending? Interesting that in a US economic thread we have a European who has no standing telling us that the US consumer spending is affected by the world and not Biden economics of spending on top of a returning job market and recovering economy.

It would help if Europeans would actually take an economics class learning about supply and demand along with the effects of monetary policy and spending on both

You do not seem to understand how our economy works

 

[washunut]

You're wrong and deserve no apology. How many times do you need to be reminded that the main drivers of inflation and recession, the Ukraine war and Covid, are completely out of Biden's control?

Just wondering. What has made you such as expert of inflation in the U.S.? Have you even taken the time to review what are the components that are looked at to calculate inflation? What percent each component represents?

Do you think that the impact of the Ukraine war on natural gas prices is the same in the U.S. as it is in Europe?

 

[washunut]

You do not seem to understand how our economy works

Please expand on this thought. Might be something worthwhile to debate.

 

[vegas giants]

Please expand on this thought. Might be something worthwhile to debate.

Recessions are a natural part of our economic system. This one was caused by the pandemic and the necessary reactions to it

The popular sentiment of financial analysts and many economists is that recessions are the inevitable result of the business cycle in a capitalist economy. The empirical evidence, at least on the surface, appears to strongly back up this theory. Recessions seem to occur every decade or so in modern economies and, more specifically, they seem to regularly follow periods of strong growth.

 

[washunut]

Recessions are a natural part of our economic system. This one was caused by the pandemic and the necessary reactions to it

The popular sentiment of financial analysts and many economists is that recessions are the inevitable result of the business cycle in a capitalist economy. The empirical evidence, at least on the surface, appears to strongly back up this theory. Recessions seem to occur every decade or so in modern economies and, more specifically, they seem to regularly follow periods of strong growth.

All valid points. The problem I have is that some of the telltale signs of recession just are not there. The key one of course is that the unemployment rate is so low. Thus many refuse to accept we are in recession even though the readouts for the last two quarters of GDP were negative. Also capacity utilization was not at a level where you expect it limit growth.

The one big thing seems to be the reduction in Federal spending this year. Perhaps in an economy of 70% services that is all it takes?

 

[bave]

What gives you such insight into the lives and circumstances of others you to say what is intentional? Why is always the ‘small government’ conservatives that want to micromanage things that are the most personal? No, thank you.
I guess I’m a train wreck, then. I sometimes speed if I’m late. I like IPA too much, and I haven’t been to the gym in forever. I’m a human with vices that doesn’t always behave herself.
I take it you always drive the speed limit, literally follow the food pyramid every day, never miss a workout?

Again, you are conflating the differences here.

Insurance is all about cost for risk. That's true with driving, yet somehow you don't understand why the same would and should apply for health. Look, if you want to be overweight and skip the gym, you do you, just don't expect society to subsidize bad decisions. That's all I am saying.

You seemingly just want to run around with an inchoerent rant due to an inability to concisely show why you think "americans are getting shafted". If you want to take a position, be able to articulately make that argument

 

[Paradoxical]

You do understand that the current recession and accompanying inflation are the consequences of global events over which Biden has no control? No, I doubt you would even consider it when there's a golden opportunity for you to blame Biden for everything that's wrong in your life.

Perhaps you are unaware of the fact that spending trillions of dollars to get votes creates inflation? Just thought I would let you know.

 

[vegas giants]

Perhaps you are unaware of the fact that spending trillions of dollars to get votes creates inflation? Just thought I would let you know.

As a result of a pandemic

 

[snakestretcher]

Just wondering. What has made you such as expert of inflation in the U.S.? Have you even taken the time to review what are the components that are looked at to calculate inflation? What percent each component represents?

Do you think that the impact of the Ukraine war on natural gas prices is the same in the U.S. as it is in Europe?

Yes, and yes.

How Big a Threat to the U.S. Economy Is the War in Ukraine?

There are more important things than inflation, such as defending democracies. But the longer the war goes on, the bigger the economic costs are likely to be.

www.newyorker.com

What does the Ukraine crisis mean for the US?

Russia's invasion of Ukraine will have an important impact on the US economic and political outlook this year.

www.eiu.com

Russia’s war on Ukraine will leave scars on U.S., world economies

The conflict may alter the global economic and geopolitical order, leading to a new era of deglobalization.

www.dallasfed.org

 

[MTAtech]

Perhaps you are unaware of the fact that spending trillions of dollars to get votes creates inflation? Just thought I would let you know.

So, your argument is that spending $1.9 trillion dollars in the U.S. caused worldwide inflation? Yeah, go run with that one.

The $1.9 trillion last year on the American Rescue Plan, handed relief checks to consumers and loans and grants to businesses to help them weather the COVID-19 pandemic. Are you suggesting that it would have been better to let Americans suffer hunger and eviction while letting businesses fold?

 

[Paradoxical]

So, your argument is that spending $1.9 trillion dollars in the U.S. caused worldwide inflation? Yeah, go run with that one.

The $1.9 trillion last year on the American Rescue Plan, handed relief checks to consumers and loans and grants to businesses to help them weather the COVID-19 pandemic. Are you suggesting that it would have been better to let Americans suffer hunger and eviction while letting businesses fold?

Look, the canard and diversion that other countries are having inflation TOO don't work here. They ALSO overspent and locked down. I live in America and the fool spent trillions while in office

 

[vegas giants]

Look, the canard and diversion that other countries are having inflation TOO don't work here. They ALSO overspent and locked down. I live in America and the fool spent trillions while in office

It's good they did

 

[MTAtech]

Look, the canard and diversion that other countries are having inflation TOO don't work here. They ALSO overspent and locked down. I live in America and the fool spent trillions while in office

You will need to show your math if you want to blame the Rescue Plan for inflation.

The multiplier on the rescue plan does, in fact, seem to have been relatively low. A lot of consumers saved those checks; state and local government spending rose by less than one percent of G.D.P.

Yet inflation soared anyway. Why? Much, although not all, of the inflation surge seems to reflect disruptions associated with the pandemic. Fear of infection and changes in the way we live caused big shifts in the mix of spending: People spent less money on services and more on goods, leading to shortages of shipping containers, overstressed port capacity, and so on. These disruptions help explain why inflation rose in many countries, not just in the United States.

But while inflation was confined mainly to a relatively narrow part of the economy at first, consistent with the disruption story, it has gotten broader. And many indicators, like the number of unfilled job openings, seem to show an economy running hotter than numbers like G.D.P.

 

[ElChupacabra]

So, your argument is that spending $1.9 trillion dollars in the U.S. caused worldwide inflation? Yeah, go run with that one.

The $1.9 trillion last year on the American Rescue Plan, handed relief checks to consumers and loans and grants to businesses to help them weather the COVID-19 pandemic. Are you suggesting that it would have been better to let Americans suffer hunger and eviction while letting businesses fold?

It tends to fall apart when comparing to other nations which did not have these kind of stimulus plans and now have higher inflation due to the varied causes of it around the world.

 

[Paradoxical]

You will need to show your math if you want to blame the Rescue Plan for inflation.

The multiplier on the rescue plan does, in fact, seem to have been relatively low. A lot of consumers saved those checks; state and local government spending rose by less than one percent of G.D.P.

Yet inflation soared anyway. Why? Much, although not all, of the inflation surge seems to reflect disruptions associated with the pandemic. Fear of infection and changes in the way we live caused big shifts in the mix of spending: People spent less money on services and more on goods, leading to shortages of shipping containers, overstressed port capacity, and so on. These disruptions help explain why inflation rose in many countries, not just in the United States.

But while inflation was confined mainly to a relatively narrow part of the economy at first, consistent with the disruption story, it has gotten broader. And many indicators, like the number of unfilled job openings, seem to show an economy running hotter than numbers like G.D.P.

Inflation is due to rampant overspending and giveaways in order for the Biden regime to stay in power. The cost of gas and diesel is a major factor as gas and diesel deliver the products to market. If Trump was in office he would not have allowed this to happen as he would not have allowed people to not work and get paid for TWO years and just hand them money on the guise of Covid.

 

[ElChupacabra]

All valid points. The problem I have is that some of the telltale signs of recession just are not there. The key one of course is that the unemployment rate is so low. Thus many refuse to accept we are in recession even though the readouts for the last two quarters of GDP were negative. Also capacity utilization was not at a level where you expect it limit growth.

The one big thing seems to be the reduction in Federal spending this year. Perhaps in an economy of 70% services that is all it takes?

It does seem things are not as predictable as some thought it would be, which is why some economists are questioning whether the actions taken to address inflation in the past are the same ones that should be used now. Employment and wages are doing well and people are continuing to spend money despite the higher costs.

 

[fmw]

You do understand that the current recession and accompanying inflation are the consequences of global events over which Biden has no control? No, I doubt you would even consider it when there's a golden opportunity for you to blame Biden for everything that's wrong in your life.

Blaming the rest of the world for profligate spending by the U.S. government is a very weak position.

 

[bongsaway]

I have over and over and over again, more people employed in February 2020 than August 2022. Inflation rate 3 times higher in 2021 than when Biden took office. Prove me wrong or admit being wrong and apologize.

Yeah ok, you have a wonderful day.

 

[99percenter]

Biden economic policies caused the 2021 inflation and the world knows it, you however don't seem to have a clue.

trump caused inflation.

 

[99percenter]

We aren't talking GLOBAL inflation we are talking about the US recession and you still haven't answered the direct question, what other country in the world has 2/3 of its GDP on consumer spending? Interesting that in a US economic thread we have a European who has no standing telling us that the US consumer spending is affected by the world and not Biden economics of spending on top of a returning job market and recovering economy.

It would help if Europeans would actually take an economics class learning about supply and demand along with the effects of monetary policy and spending on both

Only gop presidents cause recessions.

Trump virus recession Feb 2020–Apr 2020
Great bush recession Dec 2007–June 2009
Bush recession one Mar 2001–Nov 2001
hw bush recession July 1990–Mar 1991
reagan recession July 1981–Nov 1982

 

[99percenter]

This coming from a foreigner loyal to the liberal ideology based upon rhetoric and total ignorance of US economic policies and results never answering the direct question as to why?

So why does trump think dems are better at the economy?

 

[Conservative]

Yeah ok, you have a wonderful day.

Thank you, I will but you know the difference between me and you? I know when I have a good day whereas you wait for someone on the left to tell you what to think about the day. Liberalism is all about blaming someone else for poor personal choices or everything is great with me but I am worried about the other person. Liberals truly have zero empathy for anyone other than those supporting their narrative for if you truly cared about others you would focus on generating better results not just feel good rhetoric that never generates positive results.

The current recession may not be affecting you but interest rate increases hurts fixed income and hourly people and that is what you are ignoring

 

[Khayembii Communique]

Inflation is due to rampant overspending and giveaways in order for the Biden regime to stay in power. The cost of gas and diesel is a major factor as gas and diesel deliver the products to market. If Trump was in office he would not have allowed this to happen as he would not have allowed people to not work and get paid for TWO years and just hand them money on the guise of Covid.

Remember when Trump wanted his names on the checks you're whining about

 

[Conservative]

Remember when Trump wanted his names on the checks you're whining about

You have a very selective memory when trump sent out checks there were 26 million Americans unemployed. When Biden took office jobs were returning the economy was improving and Biden spent 1.9 trillion taxpayer dollars. stop making excuses and accept Is the reality that you put an incompetent into the White House

 

[Paradoxical]

Remember when Trump wanted his names on the checks you're whining about

Temporary assistance and I was against even that. I am also against any federal aid to Florida or other disaster areas. that just encourages building in hurricane, earthquake, and fire zones. If a government, business, or homeowner wants structures there, they should get insurance and if the insurance is too high, they shouldn't go without and have someone else bail them out like people with college loans