US economy shrinks for first time since 2009

[No Elephants]

US economy shrinks for first time since 2009

The unexpected turndown in the fourth quarter of 2012 shows the US economy is entering the new year with no momentum.
Last Modified: 30 Jan 2013 22:06

The US economy unexpectedly contracted in the fourth quarter of 2012, suffering its first decline since the 2007 to 2009 recession as businesses scaled back on restocking and government spending plunged.

Gross domestic product fell at a 0.1 percent annual rate after growing at a 3.1 percent in the third quarter of 2012, the Commerce Department said on Wednesday.

That was the worst performance since the second quarter of 2009, when the recession ended, and showed the economy entering the new year with no momentum.

Economists were expecting a 1.1 percent growth.

For the entire 2012, however, the economy expanded a modest 2.2 percent, a gain from 1.8 percent in 2011, the Commerce Department said.

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It stressed that the first estimate of GDP growth is based on incomplete data and is often revised.

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However, a read on private sector employment topped forecasts, with the ADP National Employment report showing 192,000 jobs added in January, higher than the 165,000 expectation.

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"If it turns out Sandy and the fiscal cliff were the reasons for (the contraction), people will shrug it off," Kaufman said.

http://www.aljazeera.com/news/americas/2013/01/2013130135729644419.html

I don't get it. I've personally posted so many positive stories about our economy. Plus, the material that I bolded sounds as though we did better than economists expected?

But, I take Al Jazeera at its word. We're not doing well. Still more proof that Republican economic policies don't work for anyone but the 1% of the 1%. How many generations of proof do we need?


Will you forgive me if post more Truman?

It ( tight money) reflects a reversion to the old idea that the tree can be fertilized at the top instead of at the bottom — the old trickle-down theory.
Harry Truman at the Amalgamated Clothing Workers Convention, Atlantic City (May 13, 1954), Good Old Harry

It was old and ineffective in 1954. Yet, we cling to it. Why? Well, as I alread said, it works fine for the 1% of the 1%.

[Enthusiast]

1. I don't understand why the PTB want a

contracted economy, but they do. Investing in a crumbling infrastructure would light a fire under the economy. But to accomplish this we would need revenue. That's not going to happen.

[No Elephants]

2. In the good ole days, the U.S. sold war bonds to raise money to pay for wars.

Now, we borrow.

[No Elephants]

3. Sorry, but I still don't get how this two lines boil down to contraction.

Economists were expecting a 1.1 percent growth.

For the entire 2012, however, the economy expanded a modest 2.2 percent, a gain from 1.8 percent in 2011, the Commerce Department said.

As I read them, we did better than economists expected and we did slightly better than 2011.

Can you help me? If so, please do, unless the effort would tire you.

[Enthusiast]

4. Claiming the economy is contracting

helps to validate the assertion that Democrats aren't providing sound leadership on economic issues.

It's very like the claim that President Obama isn't keeping us safe like Bush did. It's just another example of Republicans steering the discussion. Someone, a Republican of course, will quote the article as evidence. Might as well watch Fox "News", read Newsmax or World Net Daily.

[No Elephants]

5. Than ks Does that mean that those two lines do contradict the story, though?

Because that's how it seems to me.

[Enthusiast]

6. Me too.

[No Elephants]

7. Thanks again.