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The US economy shrank in the first quarter

SuperDS77

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Not a good sign for our economy. Curious to see how the administration spins this one.



By Anneken Tappe, CNN Business

Updated 9:11 AM ET, Thu April 28, 2022

"
New York (CNN Business)America's economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday.
The nation's gross domestic product -- the broadest measure of economic activity -- declined at an annualized rate of 1.4% between January and March in an abrupt reversal of the prior year's strong growth.
While one quarter does not yet make a trend, it is a warning sign for how the recovery is going: Two straight quarters of declining growth meet a commonly used definition of a recession.
It was a marked slowdown from the 6.9% growth pace recorded in the final quarter of last year, and the worst performance since the pandemic recession in the second quarter of 2020. Economists had predicted an annualized growth rate of 1.1%, according to Refinitiv.


Much of the decline was due to a decrease in inventory investment, which had been booming in the final months of 2021.
Exports and government spending also fell, while imports rose. Consumer spending, which is vital to the economy, increased as prices kept rising.
The price index tracking personal consumption expenditure rose 7% in the first three months of the year, or 5.2% when stripping out energy and food prices.
A second estimate of first quarter GDP growth will be published at the end of May.
Correction: An earlier version of this story incorrectly stated that the economy expanded in the first quarter of the year."
 

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Not a good number but several economists are saying this is a very unusual number in terms of the drivers. For example, GDP usually drops when consumer spending drops yet consumer spending is very high especially given inflation. It seems that industry really stocked up on inventory given worries over supply chains and therefore business spending was down. Of course, the omicron spike didn't help! Weird economic times !!!
 

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Not a good number but several economists are saying this is a very unusual number in terms of the drivers. For example, GDP usually drops when consumer spending drops yet consumer spending is very high especially given inflation. It seems that industry really stocked up on inventory given worries over supply chains and therefore business spending was down. Of course, the omicron spike didn't help! Weird economic times !!!
I’ve been in several factories all over the eastern US this week. Raw material is everywhere they can put it.
 

ataraxia

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Not a good sign for our economy. Curious to see how the administration spins this one.



By Anneken Tappe, CNN Business

Updated 9:11 AM ET, Thu April 28, 2022

"
New York (CNN Business)America's economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday.
The nation's gross domestic product -- the broadest measure of economic activity -- declined at an annualized rate of 1.4% between January and March in an abrupt reversal of the prior year's strong growth.
While one quarter does not yet make a trend, it is a warning sign for how the recovery is going: Two straight quarters of declining growth meet a commonly used definition of a recession.
It was a marked slowdown from the 6.9% growth pace recorded in the final quarter of last year, and the worst performance since the pandemic recession in the second quarter of 2020. Economists had predicted an annualized growth rate of 1.1%, according to Refinitiv.


Much of the decline was due to a decrease in inventory investment, which had been booming in the final months of 2021.
Exports and government spending also fell, while imports rose. Consumer spending, which is vital to the economy, increased as prices kept rising.
The price index tracking personal consumption expenditure rose 7% in the first three months of the year, or 5.2% when stripping out energy and food prices.
A second estimate of first quarter GDP growth will be published at the end of May.
Correction: An earlier version of this story incorrectly stated that the economy expanded in the first quarter of the year."

Obviously there is an undercurrent to such reporting that Biden is failing and none of this would be happening if Trump was president.

But does anyone really think if Trump was president, coming out of the pandemic, dealing with the inevitable supply chain issues, inflationary pressures and a fed itching to raise interest rates, and now the war in Ukraine, he would have been doing better?

I know some people looked to him (and of course, still do) as a magical Messiah, a real man's man, who could make everything better and deliver salvation ("I alone can fix it"), but I really don't think so. It just feels good to have someone at the top that cusses a lot and promises stuff. but that just sounds like magical and wishful thinking. This is just a coming together of a lot of different and very difficult things to create a very tough and unusual situation. Who said life was easy?

What might have been different is how he and Fox News would have spun it. He might have blamed the dems in congress. He would have lied, just like about his crowd sizes at inauguration. With such a large crowd so ready to believe anything he says, it might have worked. But that's just a testament to the power of manipulation, demagoguery, and propaganda, not his competence.

We will come out of this, but it may take some time. I am glad we have someone sane and sober at the helm.
 
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jonny5

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As always, one quarter is interesting, but not as important as longer term context. Which is exactly what I said about 6.9% growth. Once you remove some of the massive govt borrowing that was boosting the economy, and you still have people not working, with massive inflation, I think its normal to see a recession coming. Im sure they will blame Putin.
 

jonny5

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Obviously there is an undercurrent to such reporting that Biden is failing and none of this would be happening if Trump was president.

Does anyone really think if Trump was president, coming out of the pandemic, dealing with the inevitable supply chain issues, inflationary pressures and a fed itching to raise interest rates, and now the war in Ukraine, he would have been doing better?

I know some people looked to him (and of course, still do) as a magical Messiah, a real man's man, who could make everything better and deliver salvation ("I alone can fix it"), but I really don't think so. It just feels good to have someone at the top that cusses a lot and promises stuff. but that just sounds like magical and wishful thinking. This is just a coming together of a lot of different and very difficult things to cause a very tough situation. Who said life was easy?

We will come out of this, but it may take some time. I am glad we have someone sane and sober at the helm.

That is a good tactic. "Democrats 2022 - It could be worse!"
 

ataraxia

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That is a good tactic. "Democrats 2022 - It could be worse!"

It's true. The GOP could be keeping everyone busy looking for Obama's secret birth certificate for another 6 years straight, or wiretaps of Trump Tower, or stolen elections, or whatever else they like to bring up to keep people busy and not asking too many questions. That's not making things better. Sometimes it's tough to deal with difficult situations, but better to acknowledge, confront, and deal with them head on than distract with feel-good nonsense. That's how alcholics deal with difficult things in life- it sure makes them feel good in the short term. But it's quite a dysfunctional approach in the long term.

Yes, there's a lot of difficult things going on all at the same time right now. The GOP just offers everyone a nice drink (or a few) to feel better- lots of cussing, lying, and "owning the libs", etc... It makes their supporters feel real good. But at the end of the day, that's not a good way to actually address the difficult issues facing us.
 
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jmotivator

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Not a good sign for our economy. Curious to see how the administration spins this one.



By Anneken Tappe, CNN Business

Updated 9:11 AM ET, Thu April 28, 2022

"
New York (CNN Business)America's economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday.
The nation's gross domestic product -- the broadest measure of economic activity -- declined at an annualized rate of 1.4% between January and March in an abrupt reversal of the prior year's strong growth.
While one quarter does not yet make a trend, it is a warning sign for how the recovery is going: Two straight quarters of declining growth meet a commonly used definition of a recession.
It was a marked slowdown from the 6.9% growth pace recorded in the final quarter of last year, and the worst performance since the pandemic recession in the second quarter of 2020. Economists had predicted an annualized growth rate of 1.1%, according to Refinitiv.


Much of the decline was due to a decrease in inventory investment, which had been booming in the final months of 2021.
Exports and government spending also fell, while imports rose. Consumer spending, which is vital to the economy, increased as prices kept rising.
The price index tracking personal consumption expenditure rose 7% in the first three months of the year, or 5.2% when stripping out energy and food prices.
A second estimate of first quarter GDP growth will be published at the end of May.
Correction: An earlier version of this story incorrectly stated that the economy expanded in the first quarter of the year."
The Biden Administration is Speed Running the Carter Administration.
 

SenorXm/Sirius

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From the article:

Much of the decline was due to a decrease in inventory investment, which had been booming in the final months of 2021.
Exports and government spending also fell, while imports rose. Consumer spending, which is vital to the economy, increased as prices kept rising.

No one thought 6.9% was substantiable. It was just 1 quarter... This newest report is just 1 quarter too.
 

SuperDS77

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Obviously there is an undercurrent to such reporting that Biden is failing and none of this would be happening if Trump was president.
The link was CNN and was quite bland reporting. Where was the "undercurrent"?
But does anyone really think if Trump was president, coming out of the pandemic, dealing with the inevitable supply chain issues, inflationary pressures and a fed itching to raise interest rates, and now the war in Ukraine, he would have been doing better?
I do think he could do better. Are you saying that there is NOTHING that could be, or could have, been done by the Biden administration to possibly mitigate this downturn?

I know some people looked to him (and of course, still do) as a magical Messiah, a real man's man, who could make everything better and deliver salvation ("I alone can fix it"), but I really don't think so. It just feels good to have someone at the top that cusses a lot and promises stuff. but that just sounds like magical and wishful thinking. This is just a coming together of a lot of different and very difficult things to create a very tough and unusual situation. Who said life was easy?
Cool story bro!
What might have been different is how he and Fox News would have spun it. He might have blamed the dems in congress. He would have lied, just like about his crowd sizes at inauguration. With such a large crowd so ready to believe anything he says, it might have worked. But that's just a testament to the power of manipulation, demagoguery, and propaganda, not his competence.
More stories!
We will come out of this, but it may take some time.
Yes, hopefully sooner rather than later.

I am glad we have someone sane and sober at the helm.
Debatable.
 

ataraxia

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I do think he could do better. Are you saying that there is NOTHING that could be, or could have, been done by the Biden administration to possibly mitigate this downturn?

No, not really. What suggestion do you, or the GOP, have- other than, of course, the generic "I alone can fix it"?
 

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Obviously there is an undercurrent to such reporting that Biden is failing and none of this would be happening if Trump was president.

But does anyone really think if Trump was president, coming out of the pandemic, dealing with the inevitable supply chain issues, inflationary pressures and a fed itching to raise interest rates, and now the war in Ukraine, he would have been doing better?

I know some people looked to him (and of course, still do) as a magical Messiah, a real man's man, who could make everything better and deliver salvation ("I alone can fix it"), but I really don't think so. It just feels good to have someone at the top that cusses a lot and promises stuff. but that just sounds like magical and wishful thinking. This is just a coming together of a lot of different and very difficult things to create a very tough and unusual situation. Who said life was easy?

What might have been different is how he and Fox News would have spun it. He might have blamed the dems in congress. He would have lied, just like about his crowd sizes at inauguration. With such a large crowd so ready to believe anything he says, it might have worked. But that's just a testament to the power of manipulation, demagoguery, and propaganda, not his competence.

We will come out of this, but it may take some time. I am glad we have someone sane and sober at the helm.
None of it happened during the pre pandemic Trump economy because it DIDN'T Happen. Liberal economics is all about spending money and creating dependence. Conservative economics is all about promoting the private sector and creating new jobs due to economic activity and growth.

Such loyalty to liberalism in spite of the results, why?
 

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No, not really. What suggestion do you, or the GOP, have- other than, of course, the generic "I alone can fix it"?
Very simple, promote economic activity by creating incentives for the private sector not more regulations and controls. The only ones that benefit from liberal economics are the bureaucrats
 
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The link was CNN and was quite bland reporting. Where was the "undercurrent"?

I do think he could do better. Are you saying that there is NOTHING that could be, or could have, been done by the Biden administration to possibly mitigate this downturn?


Cool story bro!

More stories!

Yes, hopefully sooner rather than later.


Debatable.
one and two word answers LOL Then ****ing debate it then instead of your stupid trolling
 

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Not a good sign for our economy. Curious to see how the administration spins this one.



By Anneken Tappe, CNN Business

Updated 9:11 AM ET, Thu April 28, 2022

"
New York (CNN Business)America's economy unexpectedly shrank in the first quarter of 2022, data from the Bureau of Economic Analysis showed Thursday.
The nation's gross domestic product -- the broadest measure of economic activity -- declined at an annualized rate of 1.4% between January and March in an abrupt reversal of the prior year's strong growth.
While one quarter does not yet make a trend, it is a warning sign for how the recovery is going: Two straight quarters of declining growth meet a commonly used definition of a recession.
It was a marked slowdown from the 6.9% growth pace recorded in the final quarter of last year, and the worst performance since the pandemic recession in the second quarter of 2020. Economists had predicted an annualized growth rate of 1.1%, according to Refinitiv.


Much of the decline was due to a decrease in inventory investment, which had been booming in the final months of 2021.
Exports and government spending also fell, while imports rose. Consumer spending, which is vital to the economy, increased as prices kept rising.
The price index tracking personal consumption expenditure rose 7% in the first three months of the year, or 5.2% when stripping out energy and food prices.
A second estimate of first quarter GDP growth will be published at the end of May.
Correction: An earlier version of this story incorrectly stated that the economy expanded in the first quarter of the year."
Government spending falling never happened in the history of mankind! C'mon!
 

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It’s over! The collapse of our empire has begun.
 

Taylor

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Not as bad as it sounds... so long as Biden doesn't panic and start calling for more stimulus, we should be ok.
 

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Obviously there is an undercurrent to such reporting that Biden is failing and none of this would be happening if Trump was president.

But does anyone really think if Trump was president, coming out of the pandemic, dealing with the inevitable supply chain issues, inflationary pressures and a fed itching to raise interest rates, and now the war in Ukraine, he would have been doing better?

I know some people looked to him (and of course, still do) as a magical Messiah, a real man's man, who could make everything better and deliver salvation ("I alone can fix it"), but I really don't think so. It just feels good to have someone at the top that cusses a lot and promises stuff. but that just sounds like magical and wishful thinking. This is just a coming together of a lot of different and very difficult things to create a very tough and unusual situation. Who said life was easy?

What might have been different is how he and Fox News would have spun it. He might have blamed the dems in congress. He would have lied, just like about his crowd sizes at inauguration. With such a large crowd so ready to believe anything he says, it might have worked. But that's just a testament to the power of manipulation, demagoguery, and propaganda, not his competence.

We will come out of this, but it may take some time. I am glad we have someone sane and sober at the helm.
I hear the illegal drug economy is still booming.
 

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As always, one quarter is interesting, but not as important as longer term context. Which is exactly what I said about 6.9% growth. Once you remove some of the massive govt borrowing that was boosting the economy, and you still have people not working, with massive inflation, I think its normal to see a recession coming. Im sure they will blame Putin.
True, just interesting so far. If the next quarterly report is also a decline - then we meet the "recession" definition. Some economists feel we're already in the beginning stages of one.
 

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We had the worst person you could possibly have running the country during a pandemic.

Now we have the worst party you could have running the country during an economic downswing.

We had a good run as an empire but now it is over.
 

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True, just interesting so far. If the next quarterly report is also a decline - then we meet the "recession" definition. Some economists feel we're already in the beginning stages of one.
I think Democrats will taking us into a full blown depression if they can. The US must be taken down a few notches, so China can excel.
 

gbg3

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I think Democrats will taking us into a full blown depression if they can. The US must be taken down a few notches, so China can excel.
They are certainly working hard on taking the US down!
 

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True, just interesting so far. If the next quarterly report is also a decline - then we meet the "recession" definition. Some economists feel we're already in the beginning stages of one.
Actually, a recession is defined as an extended period of contracting GDP over several months, generally 2Q AND a rise in unemployment and a decrease in consumer spending. We have seen neither a rise in unemployment nor a reduction in spending, not to say that couldn't happen. As I said .....weird economic times!

"A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. Recessions are considered an unavoidable part of the business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s economy."


"A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. However, the National Bureau of Economic Research (NBER), which officially declares recessions, says the two consecutive quarters of decline in real GDP are not how it is defined anymore. The NBER defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales"

 
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