Out of Control Policy Blog

Good Signs in the Economy

New data released today shows that the U.S. GDP only contracted 1% in the second quarter of 2009. Considering the first quarter the economy recessed 6.4%, that is very good news. And it beat expectations from the various "economists surveyed" who expected a 1.5% shrink of the economy. This is, unfortunately, the first time that the economy has contracted for four straight quarters since the Great Depression. With that in mind it probably is fair to say that it is no longer hyperbole to claim this recession is the worst economic period since theGDP 1930s. But "experts" are predicting that the GDP should bounce back to positive growth in the third quarter, which would mean that right now, as we sit, read, and type, the recession is headed towards recovery.

In addition, jobless claims dropped for the first time last week to 570,000. A positive sign, but by no means a large reduction.

(Chart is from The Wall Street Journal)

Anthony Randazzo is Director of Economic Research

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Comments to "Good Signs in the Economy":

Dale B. Halling | August 27, 2009, 4:14pm | #

We will not get sustained meaningful growth without fiscal disciple and policies that encourage innovation. Innovation is the only method of increasing real per capita income – see http://hallingblog.com/2009/07/08/is-innovation-the-key-to-growing-the-u-s-economy/. We did get some good news on this front as the patent office is no longer equating quality examinations of patent application with rejections. http://hallingblog.com/2009/05/26/innovation-regulatory-road-kill/

Nick C. | September 9, 2009, 2:13am | #

That’s great! After the crisis, we learned to be more practical. People of Wal Mart, may be a vicious stereotype – but admit it: there is a kernel of truth to the idea that there are people who frequent the store that seem like perhaps they shouldn't contribute to the gene pool. Some people of Wal Mart, or at least people who habitually shop there, are just cost conscious consumers, people who need things or are able to afford something they normally wouldn't from a high end shop but can there – Wal Mart is a friend to the college student – but the stereotype at times comes all too true at the stores. People of Wal Mart or anywhere else still need installment loans for bad credit at times.

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