Power Breakfast: GDP, nukes, MARTA, stimulus, clunkers

I will be taking two days off, so this will be the last Power Breakfast until Monday morning.

Today, the economy will take center stage, as the government gives a new estimate of the nation’s gross domestic product for the second quarter. Economists expect the report will show that GDP shrank 1.5 percent — worse than the previous estimate of a 1 percent drop, Associated Press reports.

Still, that is a big improvement over the 6.4 percent decline the economy experienced in the first quarter, the worst in nearly three decades, AP said.

Investors also will be looking at the number of first-time unemployment benefit claims, which comes out today. It is expected to fall to 565,000 from 576,000. That would reverse two weeks of increases.

Meanwhile, Georgia State University economist Rajeev Dhawan said Wednesday that the national economy will probably grow in this quarter — but at less than 1 percent, AJC reporter Michael Kanell writes.

In Georgia, Dhawan said, the unemployment rate will likely rise to 11 percent next year, Dhawan predicted.

These numbers sadly demonstrate what economists have been talking about — a jobless recovery for quite some time.

Also in the AJC:

In other media:

7 comments Add your comment

Buzz G

August 27th, 2009
7:23 am

If the recession really is ending, hang on to your hat. Double digit inflation is just around the corner. Those of us on a fixed income are damned by a government spending like an irresponsible child. Neither Bernanke nor Obama have the political will to do what is necessary to slow it down. And that would be to quit spending so much and let interest rates rise to their free market levels.

Tucker

August 28th, 2009
1:58 pm

Buzz G — you live on a fixed income and you’re advocating higher interest rates? Good luck buying anything with that fixed monthly check as interest rates rise. Did you see the part about the economy declining by 6.4% in the first qtr.? And that was with a big government stimulus.

I’m constantly amazed at the blind faith, without evidence, of conservatives who believe that tax cuts alone fix all economic ailments. Their two biggest examples are ludicrous — 1) Reagan’s tax cuts – they were coupled with some of the largest deficit spending in American history; 2) Bush’s tax cuts – also coupled with incredible spending on two wars. Face it, government spending deserves at least as much credit as tax cuts as the source of the Reagan and Bush boom years.

Markets are far from perfect, and free markets are only freely imperfect. Sure they do eventually recover, but at what cost? After unemployment hits 20%. After schools, courts, police stations, libraries, hospitals close their doors? I’m not willing to accept that. I hired these elected officials, and I expect them to act when the market has become ‘irrationally exuberant’. The last administration failed to act. Glad we have one that is willing to act now. In a multi-trillion dollar economy, the current deficits are completely manageable. The sky is not falling.

Buzz G

August 30th, 2009
10:00 am

Tucker,

Where in this world do you get your economic facts? In the 16 YEARS of combined presidencies of Ronald Reagan and George W. Bush, the combined deficits won’t equal the first 16 MONTHS of the Obama administration. You don’t think the sky is about to fall? The only thing that can postpone double digit inflation is a prolonged recession. Sadly, that looks like it is becoming a more likely scenario.

JohnD

September 1st, 2009
10:10 am

Deficits only matter when Democrats control the White House.

Haven’t you guys been paying attention to Dick Cheney?

Marta Atlanta

September 1st, 2009
3:04 pm

[...] with MARTA issues, said she would only work with MARTA staff or board members, …   Power Breakfast: GDP, nukes, MARTA, stimulus, clunkersI will be taking two days off, so this will be the last Power Breakfast until Monday morning. Today, [...]

Esther Sutherland

March 12th, 2010
6:37 am

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Esther Sutherland

March 12th, 2010
6:38 am

what do you eat for a power breakfast