Commerce Department: Economic growth slowest rate in 3 years... what do you think?

Question

I hear a lot of Republicans talk about how "great the economy is"... but it seems like it's not all great... in fact, the housing bubble seems to be bursting...

http://news.yahoo.com/s/ap/20061027/ap_on_bi_go_ec_fi/economy

rohannesi: so now low growth is a good thing?
come on... are you guys even trying anymore?

thanks for the cheer about consumer confidence...

truckman: oh wow... so you're saying that as long as wall street goes up... everything is great... I guess it doesn't matter what the other 50 percent of the country that doesn't have anything to do with walstreet is doing...

Answer 1

What does the commerce department have to do with GDP growth? NOT MUCH.

The economy is doing very well, just not growing as most would like. That's a good thing, because it will (or should) keep interest rates down, meaning the housing sector will rebound. Wages are slowly climbing, meaning spending and home ownership will be safer territory next year, at hopefully more attractive interest rates. The bubbles are bursting where there was no justification for meteoric rise. There's a flat market here in So. California, but that won't last for long. People want to own homes, and people are optimistic from a consumer perspective (a factoid you failed to include here). You can't expect 25-50% appreciation to go on forever, and you can't expect 2.5-3.0% growth after incessant rate hikes (thanks Big Ben!). The economy is smarter now, and a bit more thick-skinned (absorbing high energy costs, terrorist threats, Iran/N. Korea craziness and lots of political turnover around the globe, not to mention a softening house market).

The strongest and most influential person in economics is the consumer, namely the American, Japanese and Chinese consumer. That's YOU. Quit blaming one party or another and take some responsibility: Go shopping and get some aggressive loans and buy that house while it's cheap. It won't be next year.

Answer 2

There are a lot of factors to the strength of the economy. True, housing rate has dipped from last quarter, but too early to declare a new trend. It may just mean that it's leveling off.

But what about other factors such as unemployment? It's dropped from a healthy 5.5% to an impressive 4.6%! (That means more people have jobs).

The Consumer Price Index shows inflation at a controlled annual rate of 3.4% for both 2005 and the first nine months of 2006.

Since the fall of 2004, the overall size of the U.S. economy (GDP) has increased by more than $1.3 trillion. This is new wealth that exceeds the total size of the Russian, Saudi Arabian and Hong Kong economies combined!

Getting back to the housing issue, do you think that it is a good thing that we have reached the highest percentage of minority new home ownership under the Bush years? Why do you think that is? Surely not because the economy is so weak!

Answer 3

People that think the economy is robust should come to Michigan and try to get a job, since George Bush many jobs have left the state for Mexico and China, 1000's of job loses. I use as an economic indicator my own local newspapers classified section. In 1999 there was at least a half a page, sometimes 3/4 of an page of help wanted ads. Today there was 7 jobs total including the medical jobs that are always in there. No it is not robust at all.

Answer 4

production begins are down, a lot less incentive for production boom even as banking isn't lending and inventory which isn't shrinking nonetheless must be paid for. The R& d tax hurts, who's interested in area of interest boom bif a liscenship substances no incentive or if no one will lend money for capital boom a lot less faith in a clean theory. the traditional public became informed it became a shopper society...production became too international to regulate at abode...the growh relations product is down because of outrage of the business equipment and absence of organisation information by technique of this whitehouse. This Presaidents needs get new economic advisers, there remains time to create jobs and turn the business equipment. This Presidents want to hearken to organisation because he doesn't comprehend what he's doing.

Answer 5

go figure those lying republicans,somebody better tell wall street,because the Dow keeps breaking records,whats wrong with these people there at wall street,maybe we should have congressional hearings on why the Dow keeps breaking records in the face of this horrible economy the democrats(rats)/liberals keep telling them we have!do they not listen do they not see the soup lines all over america,d@mn them republicans,they have hood winkled the stock market!may they go to he!!,while i stand in this soup line!