Economy takes a fourth-quarter stumble
“The U.S. economy contracted slightly in the final months of 2012, as defense spending plummeted and businesses depleted their inventories, in a surprising development that could give hints of the economic challenges to come.
Gross domestic product fell at a 0.1 percent annual rate in the fourth quarter, the Commerce Department said Wednesday, far below the 1.1 percent gain that analysts had forecast. The number will be revised extensively in the months ahead as more complete data becomes available, but if the number stays in negative territory, it would be the first contraction for the U.S. economy since the second quarter of 2009.”
That’s not good news by any means, but it’s also not as bad as it might appear. In wake of the announcement, for example, the stock market plummeted a whopping 18 points, or 0.13 percent, as of 12:30 p.m. In addition, a new report from ADP, which monitors private-industry hiring, predicts that the economy added a decent 192,000 jobs in January.
“According to the ADP National Employment Report, private sector employers created an average of 183,000 new jobs per month during the last three months,” said Carlos A. Rodriguez, ADP’s president and chief executive officer. “This is an encouraging sign of steady improvement in the job market.”
So what drove the surprising GDP decline? According to the Wall Street Journal, a lot of it can be attributed to a sudden 15 percent reduction in federal spending in the fourth quarter. That was the largest single-quarter drop since 1973. Clearly, taking that much money out of a still-fragile economy had an impact.
To which Sen. Mitch McConnell responded, again according to the WSJ:
“Clearly, we need to address spending. There’s simply no other way to solve the problem.”
– Jay Bookman
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334 comments Add your comment
in for a short g@-@nder
January 30th, 2013
4:19 pm
Oops!
“from” should’a ben “to”.
Gone.
Thulsa Doom
January 30th, 2013
4:27 pm
“WASHINGTON (AP) — Consumer confidence plunged in January to its lowest level in more than a year, reflecting higher Social Security taxes that left Americans with less take-home pay.”
I think this is more serious than the negative economic growth for the 4th qtr in an economy that’s 2/3rds driven by consumer spending. At least the negative economic growth is fairly explainable.
And while the growth was negative we should all be glad that it was partly because of a drop in military spending. Let’s face it fellow cons. If we’re going to gradually reduce the deficit one of the spending cuts we’re going to have to make is in defense spending- along with a whole lot of other wasteful and duplicative govt spending.
UNCLE SAMANTHA
January 30th, 2013
4:28 pm
HEY DID Y’ALL HEAR
BUSH VOTED FOR OBAMA IN TEXAS DURING THE ELECTION
WHAT A DUMMY
Logical Dude
January 30th, 2013
4:29 pm
“a sudden 15 percent reduction in federal spending in the fourth quarter.”
Wait, you mean we already had a sequestration move in progress without anyone knowing?
“Gross domestic product fell at a 0.1 percent annual rate in the fourth quarter,”
hmmm. . .15% reduced Federal spending results in .1% reduction in Gross Domestic Product. .
So, another 15% will result in another .2% reduction?
(I know, I know, I’m being very simplistic, but if it’s REALLY 15% **total reduction in government spending**, then the small contraction doesn’t seem so big of a deal)
Simple Truths
January 30th, 2013
4:30 pm
De-leveraging is painful on the personal level. It will probably be painful on the national level.
Peadawg
January 30th, 2013
4:33 pm
“You don’t cut your way to prosperity, you morons.”
Nope. Ya tax more and spend more!!!!!
Joe Hussein Mama
January 30th, 2013
4:34 pm
TBG — “Bernie Sanders?
Socialist party of America http://www.sp-usa.org/
Democratic Socialists of America? http://dsausa.org/”
If being a Socialist means that one wants America to operate wholly under Socialist doctrine, then would it not be reasonable to assume that a Christian politician wants America to operate wholly under Christian doctrine?
Careful with that broad brush of yours, TBG.
Common Sense isn't very Common
January 30th, 2013
4:38 pm
EC
Don’t ya just hate when you inadvertently do that?
it has it’s entertainment value
—————————————————
So does poking a dead cat with a stick j/k
getalife
January 30th, 2013
4:44 pm
w voted for our President to finishing cleaning up his mess.
Erwin's cat
January 30th, 2013
4:48 pm
So does poking a dead cat with a stick
crap…did ya open the box?
getalife
January 30th, 2013
4:48 pm
finish .
Erwin's cat
January 30th, 2013
4:51 pm
HEY DID Y’ALL HEAR
BUSH VOTED FOR OBAMA IN TEXAS DURING THE ELECTION
http://www.snopes.com/politics/satire/bushvote.asp
if it’s on the internet it must be true,,,Bonjour!
Joe Hussein Mama
January 30th, 2013
4:51 pm
E. Cat — “crap…did ya open the box?”
Well, it was alive when I shook the box.
ROWROWROWROWROWROWROWR
>^..^<
Common Sense isn't very Common
January 30th, 2013
4:53 pm
JHM
that’s why they invented burlap bags and cinder blocks
Joe Hussein Mama
January 30th, 2013
4:56 pm
C. Sense — “JHM
that’s why they invented burlap bags and cinder blocks”
Oy! NO CAN HAZ MAI CAT!
I like cats. I like all animals, but cats are largely self-maintaining. Feed, water, change litter. If you have outdoor cats, even easier.
Erwin's cat
January 30th, 2013
4:57 pm
JHM – just want to be sure you saw my 3:37
rightwingextreme
January 30th, 2013
4:58 pm
Joe Hussein Mama
January 30th, 2013
4:34 pm
TBG — “Bernie Sanders?
Socialist party of America http://www.sp-usa.org/
Democratic Socialists of America? http://dsausa.org/”
If being a Socialist means that one wants America to operate wholly under Socialist doctrine, then would it not be reasonable to assume that a Christian politician wants America to operate wholly under Christian doctrine?
Careful with that broad brush of yours, TBG.
uhhh…yes…the Founding Fathers made it pretty clear they believed the Christian Faith was the best under which this country and its laws would operate.
John Adams in a speech to the military in 1798 warned his fellow countrymen stating, “We have no government armed with power capable of contending with human passions unbridled by morality and religion . . . Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” John Adams is a signer of the Declaration of Independence, the Bill of Rights and our second President.
Fisher Ames author of the final wording for the First Amendment wrote, “[Why] should not the Bible regain the place it once held as a school book? Its morals are pure, its examples captivating and noble. The reverence for the Sacred Book that is thus early impressed lasts long; and probably if not impressed in infancy, never takes firm hold of the mind.”
John Jay, Original Chief-Justice of the U. S. Supreme Court , “The Bible is the best of all books, for it is the word of God and teaches us the way to be happy in this world and in the next. Continue therefore to read it and to regulate your life by its precepts.”
James Wilson, Signer of the Constitution; U. S. Supreme Court Justice, “Human law must rest its authority ultimately upon the authority of that law which is divine. . . . Far from being rivals or enemies, religion and law are twin sisters, friends, and mutual assistants. Indeed, these two sciences run into each other.”
Noah Webster, author of the first American Speller and the first Dictionary stated, “The moral principles and precepts contained in the scriptures ought to form the basis of all our civil constitutions and laws. . . All the miseries and evils which men suffer from vice, crime, ambition, injustice, oppression, slavery, and war, proceed from their despising or neglecting the precepts contained in the Bible.”
Robert Winthrop, Speaker of the U. S. House, “Men, in a word, must necessarily be controlled either by a power within them or by a power without them; either by the Word of God or by the strong arm of man; either by the Bible or by the bayonet.”
George Washington, General of the Revolutionary Army, president of the Constitutional Convention, First President of the United States of America, Father of our nation, ” Religion and morality are the essential pillars of civil society.”
Erwin's cat
January 30th, 2013
5:00 pm
Common – you had better be wear steel mesh gloves and sleeves when attempting to put said cat in a burlap sack
Erwin's cat
January 30th, 2013
5:02 pm
JHM – I like cats. I like all animals, but cats are largely self-maintaining. Feed, water, change litter. If you have outdoor cats, even easier
It has been said before
Dogs have owners…cats have staff
Joe Hussein Mama
January 30th, 2013
5:04 pm
R. W. Extreme — “uhhh…yes…the Founding Fathers made it pretty clear they believed the Christian Faith was the best under which this country and its laws would operate.”
Uhh, no. Some did, some didn’t. Some were quite vehement in their opposition to christian-led rule.
I’ve seen your list before, as well as a longer, competing list making the exact opposite point. Since I have no desire to get into a d**k-measuring contest here this afternoon, I’m simply going to point out that you misread the point that I was making to TBG. If you’d like me to clarify, just ask.
Joe Hussein Mama
January 30th, 2013
5:06 pm
E. Cat — “It has been said before
Dogs have owners…cats have staff”
Yeah, my wife didn’t think much of that aphorism after she’d been holding our Chow’s leash outside for 15 minutes in a thunderstorm in the middle of the night while the Chow looked for JUST the right spot to piddle.
skipper
January 30th, 2013
5:07 pm
rightwingextreme:
“Give me liberty or give me death!” – Patrick Henry
“Give me librium or give me meth!” – Charlie Sheen
TaxPayer
January 30th, 2013
5:08 pm
Poor cons. It’s gonna be just terrible watching them suffer for FOUR MORE YEARS under President Obama.
Common Sense isn't very Common
January 30th, 2013
5:09 pm
JHM
send the cat out to walk the Chow next time LOL.
The last cat I had pierced my ear (in 2 places) while I was petting his sorry little azz
Joe Hussein Mama
January 30th, 2013
5:11 pm
C. Sense — “The last cat I had pierced my ear (in 2 places) while I was petting his sorry little azz”
Ah! So you had some practice before coming to post here!
Erwin's cat
January 30th, 2013
5:12 pm
Common..
cats don’t pierce ears …claws do!
Common Sense isn't very Common
January 30th, 2013
5:13 pm
JHM
Yep, very acquainted with ankle biters LOL
Redneck Convert (R--and proud of it)
January 30th, 2013
5:14 pm
BUSH VOTED FOR OBAMA IN TEXAS DURING THE ELECTION
Well, so did I back in 2008. I was so mad this Kenyan Muslim Socialist was on the ballot I banged on the screen and then went on voting. Turns out my banging put a X by Obama’s name and I never went back to fix it.
Could of happened to anybody. It’s a real shame they wouldn’t let My President vote again to fix his error. Heck, the librul Democrats vote five or six times. Even if they’re dead.
Me and old Ace are going to watch Fox News. All the libruls are crowing because Fox had the lowest ratings in five years. Maybe if I watch enough the ratings will go back up.
Have a good night everybody.
Common Sense isn't very Common
January 30th, 2013
5:14 pm
EC
since they were still attached to him, he was responsible for their actions
kayaker 71
January 30th, 2013
5:18 pm
Today’s lesson in irony,,,,,,
The food stamp program is administered by the US Dept of Agriculture. They proudly report that they distribute free meals and food stamps to over 46M people on an annual basis.
Meanwhile, the National Park Service, run by the Dept of the Interior, asks us, “Please do not feed the animals”. Their stated reason for this policy being that……
“The animals will grow dependent on the handouts and they will never learn to take care of themselves.” Who says government can’t come up with some sage advice?
Common Sense isn't very Common
January 30th, 2013
5:22 pm
new sheetz BTW
saywhat?
January 30th, 2013
6:04 pm
“If your previous QB was Krap (Bush) and your current QB has you winning (Obama), you know darn well there’s no need for comparasion (sic).”
——————————————————————–
Unless you have a bunch of ignorant fans clamoring for a new quarterback with the “skill” set of the previous failure.
yuzeyurbrane
January 30th, 2013
7:05 pm
Erwin–you use false analogy. What I am proposing is to fight brainwashing cliches with facts and logic.
Stevie Ray–don’t understand your dislike of Nobel Prize winning economist willing to take his expertise public. You prefer Stiglitz, who almost totally agrees with Krugman, I presume because he is less public in expressing his analyses. I will concede that he does get outside his area of expertise when he gets into pure political prognostication. He is entitled to his opinion there but I don’t give it nearly as much weight as his economic analysis which seems to have been pretty much spot on for the last 4 years.
Joel Edge
January 31st, 2013
6:38 am
“but it’s also not as bad as it might appear.”
Of course not. LOL.