GDP growth revised up (3.8% Q4 2004)

[tritsofme]

WASHINGTON (Reuters) - The U.S. economy grew at a 3.8 percent annual rate in the fourth quarter, the government reported Friday, much stronger than previously estimated due to a stronger trade and investment performance.

Gross domestic product, the broadest measure of the nation's economy, grew at the revised rate in the quarter rather than the 3.1 percent rate reported a month ago. That was slightly stronger than the 3.7 percent rate that Wall Street economists had forecast and only a small decline from the third quarter's 4 percent pace.

Nearly half the revision stemmed from a stronger trade performance, reflecting more robust exports than previously thought.

Statistics Canada corrected a $1.4 billion error in underestimating U.S. exports to Canada during November, and later data also showed the U.S. trade deficit for December narrowed more than had been anticipated.

Despite the fourth-quarter revision, there was no change in the government's calculation that GDP grew 4.4 percent during 2004, much stronger than the 3 percent increase posted in 2003 and the strongest for any year since 1999 when it expanded 4.5 percent.

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http://money.cnn.com/2005/02/25/news/economy/gdp.reut/index.htm

[Wright Patman]

1. Growth without employment

Every capitalist's 'wet dream.'

We now know under the "new paradigm" that growth can exceed four percent annually and still barely provide enough new jobs for those entering the work force.

Let's not even mention the quality of the jobs which are being created, a very substantial percentage of which are coming from the demonized-by-the-GOP "government" sector.

[swag]

2. Sweatshop America in full effect

Go get a late pass.

[swag]

3. If GDP keeps growing like this,

they'll have to recalc the Soc Sec Trust Fund solvency dates. They'll probably find that it's good until 2082.

Unless GWB decides to default on $2 Trillion in US Government Securities, as he has been hinting he would very much like to do.

[kuozzman]

4. Why do so many people worldwide pay attention to something so

easily manipulated? And it's not just GDP, most indicators are easily manipulated. I don't understand how so many investors, brokers, etc. can base a lot of their decisions on these so often. I think they're rather meaningless, especially under this administration, who once said that fast-food cooks were to be included in calculating manufacturing jobs, because they manufacture hamburgers?