US economy grew at a sizzling annual pace of 4.2 percent in the second quarter, faster than initially reported (AFP Photo/Frederic J. BROWN)
AFP: US economy grew 4.2% in second quarter, faster than first reported
Washington (AFP) - The roaring growth of the US economy in the second quarter was even faster than first reported, with new numbers showing a bigger boost in corporate spending, the government reported Wednesday.
The uptick in estimates of second quarter spending by companies was sure to comfort President Donald Trump and supporters of December's sweeping corporate tax cuts who argue that lowering corporations' tax burdens will spur investment and growth.
Gross Domestic Product advanced at an annual rate of 4.2 percent in the April-to-June period, a tenth of a point faster than initial estimates showed last month and -- at nearly twice the first quarter's pace -- the fastest growth in almost four years, according to the Commerce Department.
Analysts had been expecting a slight downward revision.
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WNU Editor: I remembered when the critics were pouncing on then candidate Trump's promise that he would deliver 3% growth annually if elected. And while I do know that a lot of Americans are still not enjoying this booming economy, there are many who are, and in the end this type of growth will only benefit everyone.
21 comments:
The actual growth where I live in the Houston, TX area is far higher than this report indicates. While I don't know the exact numbers, it ultimately comes down to whom do we believe. Do we believe our increased purchasing power and that of our neighbors which has grown much faster than any 4.2% for most of us in this area or do we believe the talking head pundits?
With that said every area is no the same. The area where I live has a large number of entrepreneurs, small business managers, small business employees, professionals, and other innovative and hardworking types. Such people are tailor made to flourish in an environment where regulations are streamlined and taxes are cut. Groups such as welfare recipients, serial minimum wage types, and others of this group may not do as well.
Also, government employees, college professors, and those in this group may not have seen increases in income. Of course this group ALWAYS does well ALL OF THE TIME. Furthermore such people generally do not understand the concept of win/win. They see increases in income to the private sector as less that is going to be available to them and for the government bureaucrat intrude on his/her power and war is being asked for. Perhaps in time they may come to see that increase income for Americans and increased profits equals more tax revenue which equals increases in income for them as well.
Such increases also will increase the social safety net helping those who are stuck at minimum wage or are welfare recipients. Many are in this group through no fault of their own. In time, the economic growth will help them. It is important that we not take steps to undermine this very fragile situation. The current tax cuts and regulatory reforms are but a down payment on what needs to be done which I am confident will happen once Republicans who are of the mindset of POTUS gain more seats in the House and Senate in November.
Trump's focus is returning prosperity to fly over country. That's his base and how it goes is how he goes as President.
but, but Russia and Putin did tell trump to do just that.. it's Putin's power-play, I tell you, it all makes sense! people with big glasses on CNN told me so!!! are you saying people who wear glasses and talk all day for money would mislead me, so I keep watching and further their bosses agenda? Nonononnononooooo PUTIN!!! RUSSIA!!!
Everything Is Booming Except for Wages
After accounting for inflation, pay increases are negligible.
Ah Lapides,
You said that the economic recovery was attributable to Obama.
Very easy to find out :
Did something good happen? It was Obama. That guy is Jesus, just better.
Did something bad happen? It was Trump, this filthy, racist pig makes Hitler look like a saint.
It's been 2 years, you should know by now how this works.
Fred,
What I think you are looking at are averages and not the median. At the lower end, there probably aren't the increases that there are at the top and since lower numbers skew averages more so than higher numbers do I think the better number to look at would be median wage increases.
Also, are the bonuses people received being factored in? where I live in the Houston, TX area people have seen substantial increases in income. Some of this has been due to bonuses rather than wage increases. If we are only looking at wage increases in the Houston area, the numbers will be skewed if the bonuses that people are receiving and have been received are not being factored in.
The employers I have dealt with are of the mindset that wages will increase once they have some assurance that the tax cuts and regulatory forms implemented by POTUS are going to be relative permanent. Until such time, they are going to be very reluctant to commit to such a course of action. I am confident that this will happen after the mid terms once Republicans who are of the same mindset as POTUS gain more seats.
Also, I suspect that the wages of government employees, college professors and others of this group have not seen much in the way of pay increases if any. Government employees make up a huge segment of the workforce. Of course this group does well ALL OF THE TIME and prospers no matter what the economy as a whole does. If this segment is not seeing increases, this will skew the averages as well. In my experience, this group has trouble recognizing win/win scenarios. To them, increases for the private sector equal decreases for them. Perhaps in time they can realize that a growing economy means more tax revenue which means higher pay for them in the long run.
I would add a caveat to my post. The area where I live is heavily comprised of entreprenuers, small business managers, professional, and other highly skilled types. This type of workforce is tailor made to flourish under the tax cuts and regulatory reforms as implemented by POTUS. As they flourish, this should increase tax revenues which should increase the social safety net. This should in turn help everyone.
Every empirical measurement that's been used to gauge economic heath and standard of living - for the last 100 plus years - has improved under Trump. You can nay say all you like Fred, but its all just discontented noise.
USA,
MAGA,
R,
"wages will increase once they have some assurance that the tax cuts and regulatory forms implemented by POTUS are going to be relative permanent." Exactly B.Poster. I believe businesses have faith in Trump's policies. However, they also know the liberals will piss on these policies if they regain control. Businesses not only want to see more like minded individuals gain seats in november, but they would like to see the American public wake up. When the vast majority of the American public understands that Trumps policies are good for wages and growth, business wont fear morons getting elected. Thus, they will feel comfortable committing to wage increases vs handing out bonuses.
The tax bill passed adds huge amount to deficit
The tax bill passed gives little to the middle class and a huge amount to the weatlhy
You can never have assurances of anything and yet you claim pay raises will result down the road based on assurances. Bills are due this month and not down the road with assurances
Lapides,
You are confused..............again. "Bills are due this month and not down the road with assurances". Assurances have been a Democrat specialty for 50+ years.
Not talking about dems but assurances mentioned by comment here
No snark plz
Lapides,
Mother Fred chastising the unwashed for unapproved speech. Must be nice Lapides to have an Olympian view, but your halo is getting a little rusty, but that's ok, your arguments have been that way for a long time.
Lapides,
Such language. Don't worry about reading you, you've been unreadable for a long time and you've done it alll by yourself, again congratulations are in order!
Fred your comment about the increasing debt is valid. Consider this, though: under Bernanke's attempts and obama's legislative attempts to get the economy rolling again, $9 to $12 trillion were spent in 8 years, AND old folks like myself and tens of millions more are still getting stiffed by Bernake and the following fed boss because we saved our $$ in banks and were impacted by the artificially low interest rates still in existence today. And what was the result? The weakest recovery of the US economy from a recession since the end of WWII, from what I have read numerous times. Have you read differently, Fred?
Now along comes some economic common sense in the form of DT and the economy is hard to believe it has grown so quickly and strongly on immeasurably LESS debt. I can't grasp that the 2009 Nobel Peace Prize winner could have such a profoundly negative impact on an economy by his legislation, but my disbelief certainly doesn't make that seeming reality go away.
Perhaps you and Mr. Bernanke can explain?
Fred,
"You can never have assurances of anything..." This is true. If you jump out of a third story window head first onto the concrete below there is a chance, albiet a very small one, that you will escape serious injury. As Such, your statement is correct that we never can have assurances of anything is correct.
When I stated that the current bonuses will become relatively permanent re pay raises if employers have confidence the regulatory reforms and tax cuts are relatively permanent, it is based upon the assumption that other variables will remain constant. There are any number of "black swan" type events that could change this. Examples include but are not limited to oil supply disruptions, terrorist attacks, an asteroid strike, and I think you get the idea.
As I have explained to you before, I am a Certified Public Accountant. I've provided you with the link to my company's website. Part of what I do is assist business owners and executives with tax planning. From this experience I can say with an exrremely confidence that until employers have confidence that the tax cuts and regulatory reforms are relatively permanent they are going to be,reluctant to "pull the trigger" on raises or added benefits. Until such time as they can realistically have such confidence, pay raises will come primarily in the form of bonuses as they are now.
Once we know the current regulatory reforms and tax cuts are permanent with more to follow especially with regards to regulatory reform, the wage increases over the current bonuses will follow. Employers will need to do this to remain competitive.
The debt issue is a huge problem and potentially even bigger than it currently is. Getting tax cuts passed has historically proven to be much less difficult than getting the government to spend money sensibly. All else being equal regulatory reforms and tax cuts will increase the government's coffers meaning they will have even more money to waste.�� Due to my work load and deadlines I must meet along with family matters my time to post will be very limited for the next few weeks.
.
Poster
If you are an accountant than you should--must--know that there are NEVER assurances of tax cuts being permanent etc. After all, Trump by executive order changed everything Obama did, including taxes. The wage gap grows and there is NO plan to change this. NONE. And no one can assure anyone what will happen in the next elections
ps
CNN fires back at Trump: 'CNN does not lie'
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