[lbo-talk] U.S. Economy Grew 7.2% in 3Q, Fastest Pace in 20 Years

Dwayne Monroe idoru345 at yahoo.com
Thu Oct 30 10:11:39 PST 2003


Chuck0 posted:

It is a sustainable trend, one which should prompt those of who have been anticipating a long period of economic stagnation to reconsider our analysis.

Max B. Sawicky replied:

Oh really?

http://www.epinet.org/content.cfm/webfeatures_econindicators_gdppict

from which...

In summary, the recovery received a welcome boost in the third quarter, as all sectors of the economy expanded. Consumption, residential housing, and business investment for equipment and software lent a helping hand to the highest growth rate in almost 20 years. However, many of the causes underlying this growth are temporary: one-time tax cuts lifted disposable income; mortgage refinancing increased household spending; and a decline in inventories contributed to a lower trade deficit. To make the recovery sustainable, future household spending needs to be fuelled by income growth, which requires a recovery of the labor market, and further shrinking of the trade deficit, which requires a sustained decline in the value of the dollar.

*********

Just yesterday, while shopping in a super market, I ran into a woman I know. I asked her how her employment situation was and she said "phenomenal."

Her line of work? Designing more efficient closet spaces for middle and upper-middle class folks.

I expressed surprise that "in this economy" her less well moneyed clients (the bulk apparently) could still afford such things.

"It's the home refinancing money" she reported without missing a beat.

So, for her, there is no recession - at the moment.

How sustainable is this?

And, are there other, seemingly more sturdy activities, such as trucking, that are seeing gains because of similarly ethereal and soon-to-lose-steam-to-entropy sources?

DRM

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