Economy Picks Up Pace in First Quarter
May 27, 10:57 AM (ET)
By JEANNINE AVERSA
WASHINGTON (AP) - The economy grew at a 4.4 percent annual rate in the first quarter of this year, slightly faster than previously thought and fresh evidence that the recovery possessed good momentum as it headed into the current quarter.
The increase in gross domestic product from January through March reported by the Commerce Department on Thursday marked an improvement from both the 4.2 percent pace first estimated for the quarter a month ago and the 4.1 percent growth rate registered in the final quarter of 2003.
The GDP measures the value of all goods and services produced within the United States. While the latest reading was just shy of the 4.5 percent pace that some analysts were forecasting, it nevertheless represented a solid performance.
Separately, the Labor Department reported that new applications for unemployment benefits dropped last week by a seasonally adjusted 3,000 to 344,000, another hopeful sign for a labor market recovery
It must really make the Democrats mad that George Bush’s predictions are coming true. He’s stupid like a fox.
The economy has been picking up steam since at least the 4th Q of 2003 Lumpy. It’s amazing what some well-placed, incentivizing tax cuts will do to an economy, especially with a Fed that’s also pro growth.
As for all the complaining about gas prices, a few things: 1) I thought the whole idea of “no blood for oil” was about the idea that going to Iraq was to create cheap oil for the U.S.? Apparently that storyline had to be modified… 2) This current price spike is a confluence of several factors, among which include the effect of environmental regs (expensive gasoline additives have been required over the last year), improving, growing economies in China and India (imagine that: when their economies pick up, they demand more oil – oil is a globally priced commoditiy, so their demand triggers a temporary price spike until the supply can expand to meet it); 3) What make you think Bush and the U.S. run OPEC? OPEC itself can’t even control prices for long, but how can you possibly blame Bush for their supply quotas? and, lastly 4) I thought all you Democratic environmentos would encourage high gas prices. Europe has high gas prices, due to excessive taxes (BTW, we could cut our own prices by almost $1/gallon in some areas if you cut out federal, state and local gas taxes), and tree hugging hippies have been arguing for a long time we should raise our taxes to those levels (European prices are (very approximately) $4/gallon).
WHy don’t you all go out and protest against gas taxes? That would be the easiest way to effect a price lowering.
The overall health of the economy is not controlled by any one person or source. Pols can have an impact (positive or negative), but they alone cannot “make things” better or worse all by themselves. We are, after all, affected by other markets beyond our borders, folks.
How 'bout this…Clinton benefitted from an economic boom, and Bush will probably get boosted in the polls due to a growing economy. In both cases, American (and other) bussinesses had more to do with those facts than tax-cuts and partisan policy. Oooh, how convenient.
Let’s not make presidents the sole determinig factor for the economy, please. How 'bout financial factors like interest rates, R&D and operating expenses, cash flows and ROI…ain’t they more important than a $500 dollar tax credit per child? How 'bout energy supplies, infrastructure the strength of the Euro and Yen?