GDP grew at a 2.4% pace in the second quarter, topping expectations despite recession calls (Congress, government)

[Wapasha]

Originally Posted by Ponderosa

Bidenomics works!

It's not Bidenomics, it's the country still bouncing back from the disastrous COVID lockdowns that destroyed so many jobs and so much of the economy.

[Igor Blevin]

GDP is 2.4% but headline inflation is 3.0%.

So the economy shrunk by 0.6%, but with a positive GDP due only to higher prices.

Got it.

They sold less widgets but at a higher price.

[michiganmoon]

Originally Posted by Igor Blevin

GDP is 2.4% but headline inflation is 3.0%.

So the economy shrunk by 0.6%, but with a positive GDP due only to higher prices.

Got it.

They sold less widgets but at a higher price.

They adjust these GDP numbers for inflation. The only way that your scenario of inflation actually eating away at GDP is if they understate inflation.

https://www.pluriconseil.com/why-act...s-understated/

https://www.theepochtimes.com/articl...pected-4220531

[Wapasha]

Originally Posted by michiganmoon

They adjust these GDP numbers for inflation. The only way that your scenario of inflation actually eating away at GDP is if they understate inflation.

https://www.pluriconseil.com/why-act...s-understated/

https://www.theepochtimes.com/articl...pected-4220531

Well, the Fed hiked interest rates by a quarter point and says they will reserve another chance to increase them again later this year - cuz inflation. The Personal Consumption Expenditures price index rose 3.8% for the 12 months ended in May.

[Leo58]

Originally Posted by workingclasshero

yep GDP (spending) increased.... credit card debt....is at a RECORD HIGH..... AND THAT'S WHERE THE SPENDING IS COMING FROM

a trillion dollars of credit card debt.... for your grandkids...... way to go bidconomics

Did Biden force people to spend on their credit cards? That's what interest rates hikes are supposed to do - discourage people from buying things they can't afford. But wages are up so I suppose people figure they can pay off the cards eventually. Oh well, that's the American consumer mentality for you.

[Igor Blevin]

Originally Posted by michiganmoon

They adjust these GDP numbers for inflation. The only way that your scenario of inflation actually eating away at GDP is if they understate inflation.

https://www.pluriconseil.com/why-act...s-understated/

https://www.theepochtimes.com/articl...pected-4220531

My mistake. I thought they reported nominal GDP.

[beach43ofus]

What was GDP adjusted for inflation?

[James Bond 007]

Originally Posted by beach43ofus

What was GDP adjusted for inflation?

These numbers are real GDP, that is, adjusted for inflation.

[James Bond 007]

Originally Posted by Igor Blevin

GDP is 2.4% but headline inflation is 3.0%.

So the economy shrunk by 0.6%, but with a positive GDP due only to higher prices.

Got it.

They sold less widgets but at a higher price.

Wrong. The 2.4% number is real GDP. That is, after adjusting for inflation.

Nominal GDP - that is, not adjusted for inflation - rose by 4.7%.

From the BEA press release:
https://www.bea.gov/news/2023/gross-...vance-estimate

Real gross domestic product (GDP) increased at an annual rate of 2.4 percent in the second quarter of 2023 ... Current‑dollar GDP increased 4.7 percent at an annual rate, or $305.2 billion, in the second quarter to a level of $26.84 trillion

[beach43ofus]

Originally Posted by James Bond 007

These numbers are real GDP, that is, adjusted for inflation.

I didn't know that so thx! If we downsized gov't, it would skyrocket. Gov't sucking up too much cash for GDP to take off. Gov't is a parasite upon the private sector.