US GDP Rebound

[helmsdale]

What would lead you to believe that Trump has any intention to pivot away from stimulus should he remain as President? By all accounts, he seems to embrace it.

In the short term news cycle world, there is NO BENEFIT politically to turning off the spigot. People want EASY solutions, and by god it's up to government (of all stripes/colors/persuasions) to give them what they want!

People might list debt and deficits as a "primary concern" politically, but when they're buried in debt long past their eyeballs themselves it's little more than virtue signalling. Majority of people are worried about their own debt situations, but damn, when they dangle the low interest carrot, you're thought to be sctoopid not to put in on plastic!

They say things like, "I've earned it", or "I deserve it", or "You only live once". How can we expect our politicians to live within their means, when the majority of the populace is incapable itself?

[Austrian Economics]

Further to the idea that rising GDP means a healthy economy. Suppose someone loses their job due to the lockdown, and the government borrows enough to pay that person to stay home and not work, and they wind up making a bit more than they used to at their old job. GDP goes up! But is the economy healthier because we now pay people not to work? Not a chance.

[errolanderson]

GDP simply measures all the spending and borrowing that goes on in an economy. It does not differentiate between productive and unproductive spending. Much of the current boost to GDP is the result of the worldwide push for governments to borrow unprecedented sums of capital and then dole it out to be consumed. The Trump administration has been as much a proponent of this strategy as any other. Exploding deficits at all levels of government should not be celebrated.

The GDP boost comes as a result of racking up debts that ultimately cannot be repaid.

AE, you are totally right . . . .

Also, a 31% decline in the 2nd quarter to a 33% rise in the 3rd quarter still means the U.S. economy is shrinking. 33% gain is the result of a much smaller pie. 4th quarter economic reality will be interesting

[Hamloc]

According to the IMF Canada will have the distinction of running the highest deficit among all countries advanced, emerging, developing as a percentage of GDP at 19.9%. If you look at all levels of government spending in Canada it amounts to 57.3% of GDP! I have to be honest at a loss for words!

[jazz]

We can debate the structure of the economy all day and night, but I know which one I would prefer having right now.

Here Charles Payne breaks down the numbers behind the GDP growth in durable, non durable goods, manufacturing, home sales and construction.

Its a blow out anyway you look at it.

[Oliver88]

According to the IMF Canada will have the distinction of running the highest deficit among all countries advanced, emerging, developing as a percentage of GDP at 19.9%. If you look at all levels of government spending in Canada it amounts to 57.3% of GDP! I have to be honest at a loss for words!

The goal of the Trudeau government is to phase out our #1 export.

When will “green energy” start paying the bills like Trudeau promised?