AN UNSURPRISING UPDATE:
A few weeks ago we noted that the third-quarter GDP number was likely to be a stunner, defying the endless claims by the press that the economy will struggle to emerge from the COVID-19 lockdowns. We also warned that voters wouldn’t get the news through the mainstream press.
Well, we were right on both counts.
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GDP number just announced. Biggest and Best in the History of our Country, and not even close. Next year will be FANTASTIC!!! However, Sleepy Joe Biden and his proposed record setting tax increase, would kill it all. So glad this great GDP number came out before November 3rd.
— Donald J. Trump (@realDonaldTrump) October 29, 2020
It’s the sort of thing that only really interests economists since it has no personal meaning for anyone. Nevertheless, better this than the opposite. In its own way the Democrat decision not to provide a “stimulus” helped things out a bit, not that they would have known. Discussed here: U.S. GDP booms at 33.1% rate in Q3, better than expected.
Increased consumption along with sold gains in business and residential investment as well as exports fueled the third-quarter rebound. Decreases in government spending following the expiration of the CARES Act rescue funding subtracted from GDP.
It no doubt did subtract from GDP but it also added to growth. These Keynesian measures are such misleading indicators.