Comments on: Economic Growth

By: Dave Schuler

Dave Schuler — Fri, 27 Jul 2007 22:30:33 +0000

Note especially that a major component of the increase was an increase in government expenditures (as has been the case for the last five or six years). That and an increase in expenditures for services (a good deal of which is for health care which is heavily subsidized). I don't see that as a formula for prosperity.

By: Steve Verdon

Steve Verdon — Fri, 27 Jul 2007 20:35:01 +0000

In the last couple of years, the trend seemed to be the GDP numbers came in low and then increased as they were revised. Any special reason you think this report will break that trend?

Yes, there was the case where GDP numbers for the 4th quarter of 2000 were revised downwards substantially. So, to rule out the idea of downward revisions is probably not a good one.

By: spencer

spencer — Fri, 27 Jul 2007 20:32:56 +0000

Also note the downward revisions over the past year.

We were looking at a Y/Y real gdp increase of 1.9% at the end of the first quarter. That was revised down to 1.5% and even including the second quarter pop the y/y is now 1.8% -- less than we though a week ago.

By: yetanotherjohn

yetanotherjohn — Fri, 27 Jul 2007 20:25:28 +0000

In the last couple of years, the trend seemed to be the GDP numbers came in low and then increased as they were revised. Any special reason you think this report will break that trend? I realize that going up, down or even staying the same is all possible. But the trend would seem to be revised upwards.