U.S. first-quarter growth cut to 1.8 percent

[muriel_volestrangler]

Source: Reuters

U.S. economic growth was more tepid than previously estimated in the first quarter, held back by a moderate pace of consumer spending, weak business investment and declining exports.

Gross domestic product expanded at a 1.8 percent annual rate, the Commerce Department said in its final estimate on Wednesday. Output was previously reported to have risen at a 2.4 percent pace after a 0.4 percent stall speed in the fourth quarter.

Economists polled by Reuters had expected first-quarter GDP growth would be left unrevised at 2.4 percent. When measured from the income side, the economy grew at a 2.5 percent rate, slower than the fourth-quarter's brisk 5.5 percent pace.

Details of the report, which showed downward revisions to almost all growth categories, with the exception of home construction and government, could cast a shadow over the Federal Reserve's fairly upbeat assessment of the economy last week.

Read more: http://uk.reuters.com/article/2013/06/26/uk-usa-economy-idUKBRE95P0O320130626

[byeya]

1. Monetary policy is at the end of its usefulness. It should have been an adjunct to fiscal

stimulus but Obama couldn't get enough money from the Republican House - What he got was effective.
Japan has just spent 20 years in a deflationary spiral and it can happen here.
Also, and probably related, the USA can fall into a liquidity trap which is also hard to escape.
We have pressing needs with all sorts of public necessities from bridges to water treatment plants and from schools to the power grid.
The President, as part of his strategy, needs to hammer the Republicans over and over about letting the country go down the tubes for no reason other than spite. He needs - and Joe Biden can sure help here - to explain how this situation affects the majority of Americans. He has the ability to reach people as President; he needs to do it.

[SlimJimmy]

2. So tell me. What part of the 800+ billion stimulus went to this. According to the

President and the Democratically controlled Congress, this money was supposed to go to these shovel ready jobs you listed above. What the hell happened? We keep hearing about the need for more money to support infrastructure, but when it's appropriated, these projects aren't done. I'm getting sick of the political doubletalk.

We have pressing needs with all sorts of public necessities from bridges to water treatment plants and from schools to the power grid.

[byeya]

3. I am trying to remember as best I can: Less than $50Billion went to roads and bridges. Extended

unemployments benefits were included; money for education was part; money to help buyers of primary houses was part; more money for food stamps and the disabled.
I wish I could tell you more or provide a link but the spending for infrastructure amounted to - I think - less than half of the $800Billion and direct payments to individuals in need - like unemployment money for the long term unemployed - was a greater share.
The Amer Soc of Engineers estimate 1$Trillion is needed to get all the things we lump under the term infrastructure up to speed - of course, they have a vested interest because it means work for them but they do monitor these situations.
Paul Krugman commented at the time the amount of money was very much short of what was needed but Pres Obama got what he could or at least got what he thought was needed.
Sorry I couldn't be more helpful.

[BumRushDaShow]

4. Projects WERE done including

this one that I use in my commute here in Philly -



There are an estimated 3.9 million miles of road in the U.S., over 590,000 bridges, and $800,000,000 would never have been enough... and Congress wasn't about to approve any more than even that. And as an FYI, the stimulus was not just infrastructure, it included tax credits for cars, high-speed rail, and other things. You also had rethug governors refusing stimulus money (queue Dicky Ricky Scott, Piyush Jindal, and Bubblehead Perry).

But you knew that right?

[byeya]

6. Thanks for te additional information. Now I remember Walker of Wisc refusing the high speed

rail from Chicago. Moron.

Hot pretzels; Philly Cheese Steaks; Tasty Cakes; the Melrose diner; scrapple

[SlimJimmy]

7. The stimulus was 800 billion with a b. That's almost a trillion dollars. Where did it go?

[Safetykitten]

5. Gee, who woulda thunk that would happen?