Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#1

Post by Varcht » Wed, Aug 29, 2018, 11:45 PM UTC

Second-quarter US GDP growth revised up to 4.2 percent on software, trade
thegazette.com

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#2

Post by joefranklinsrs » Thu, Aug 30, 2018, 12:58 AM UTC

I haven't seen US economy this versatile and powerful in a long time, maybe since the 80s. This economy is diversified - manufacturing jobs used to be 32% in the 60s, now it is around 9% currently, but it is growing fast this year. We now have new jobs in every sectors growing, from finance (NY), college (Boston), healthcare (east coast), government (Washington DC), entertainment (Los Angeles), oil and gas (Texas), import/export (Cali/Florida), tourism (Florida), agriculture (flyover), and of course, tech (Silicon Valley, Seattle). And each industry is evenly distributed and growing. Thus the low unemployment rate and wage increases (higher in industries with higher demands)

US has gone through lots of challenges (globalization, gas/oil crisis, 9/11, cold war) in the last 50 years, and has come out on top every time.

4% growth is huge for the largest economy in the world, and the economy is nearly double the size of the closest competitor country. Bay Area alone is nearly a trillion dollar economy, and has double the growth rate of any other county in US.

Coupled with the flooding of capital back to US via the reduced expatriation tax rate, US is firing on all cylinders.

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#3

Post by lovich » Thu, Aug 30, 2018, 1:16 AM UTC

joefranklinsrs wrote: post #2

I haven't seen US economy this versatile and powerful in a long time, maybe since the 80s. This economy is diversified - manufacturing jobs used to be 32% in the 60s, now it is around 9% currently, but it is growing fast this year. We now have new jobs in every sectors growing, from finance (NY), college (Boston), healthcare (east coast), government (Washington DC), entertainment (Los Angeles), oil and gas (Texas), i…

The economy is growing but it doesn't appear to actually be flowing back into most citizens pockets. The unemployment rate is very low but wages aren't rising.

Anecdotally, I am seeing more help wanted signs on retail and restaurants near me, but my friends who work those jobs are moving _farther_ away from work due to increasing rent without increasing pay. That doesn't seem sustainable

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#4

Post by user1324345 » Thu, Aug 30, 2018, 1:16 AM UTC

[flagged]

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#5

Post by joefranklinsrs » Thu, Aug 30, 2018, 1:20 AM UTC

lovich wrote: post #3

joefranklinsrs wrote: post #2

I haven't seen US economy this versatile and powerful in a long time, maybe since the 80s. This economy is diversified - manufacturing jobs used to be 32% in the 60s, now it is around 9% currently, but it is growing fast this year. We now have new jobs in every sectors growing, from finance (NY), college (Boston), healthcare (east coast), government (Washington DC), entertainment (Los Angeles), oil and gas (Texas), i…

The economy is growing but it doesn't appear to actually be flowing back into most citizens pockets. The unemployment rate is very low but wages aren't rising. Anecdotally, I am seeing more help wanted signs on retail and restaurants near me, but my friends who work those jobs are moving _farther_ away from work due to increasing rent without increasing pay. That doesn't seem sustainable

Could you link something that supports your opinion?

As for me: US consumer confidence surges in August to 18 year high. https://www.theguardian.com/business/2018/aug/29/us-economy-.... Consumers wouldn't be spending if they didn't have extra cash in their pocket, and they expect the economy to stagnate/decline

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#6

Post by lsllc » Thu, Aug 30, 2018, 1:26 AM UTC

lovich wrote: post #3

joefranklinsrs wrote: post #2

I haven't seen US economy this versatile and powerful in a long time, maybe since the 80s. This economy is diversified - manufacturing jobs used to be 32% in the 60s, now it is around 9% currently, but it is growing fast this year. We now have new jobs in every sectors growing, from finance (NY), college (Boston), healthcare (east coast), government (Washington DC), entertainment (Los Angeles), oil and gas (Texas), i…

The economy is growing but it doesn't appear to actually be flowing back into most citizens pockets. The unemployment rate is very low but wages aren't rising. Anecdotally, I am seeing more help wanted signs on retail and restaurants near me, but my friends who work those jobs are moving _farther_ away from work due to increasing rent without increasing pay. That doesn't seem sustainable

That's why the traffic is so damn awful now ... people are having to travel further out of the cities to find affordable housing, but the high paying jobs are in the cities.

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#7

Post by tootie » Thu, Aug 30, 2018, 1:28 AM UTC

joefranklinsrs wrote: post #5

lovich wrote: post #3

Earlier quoted context omitted.

The economy is growing but it doesn't appear to actually be flowing back into most citizens pockets. The unemployment rate is very low but wages aren't rising. Anecdotally, I am seeing more help wanted signs on retail and restaurants near me, but my friends who work those jobs are moving _farther_ away from work due to increasing rent without increasing pay. That doesn't seem sustainable

Could you link something that supports your opinion? As for me: US consumer confidence surges in August to 18 year high. https://www.theguardian.com/business/2018/aug/29/us-economy-... . Consumers wouldn't be spending if they didn't have extra cash in their pocket, and they expect the economy to stagnate/decline

Wage data is well-tracked and is shown to be growing more slowly than inflation. It's possible the high growth in nominal wages are engendering some good feelings, but actual purchasing power is dropping.

https://www.washingtonpost.com/amphtml/business/2018/07/12/i...

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#8

Post by telotortium » Thu, Aug 30, 2018, 1:30 AM UTC

Mods, can we retitle this to point out that it's specifically the US economy that's grown?

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#9

Post by melling » Thu, Aug 30, 2018, 1:31 AM UTC

joefranklinsrs wrote: post #2

I haven't seen US economy this versatile and powerful in a long time, maybe since the 80s. This economy is diversified - manufacturing jobs used to be 32% in the 60s, now it is around 9% currently, but it is growing fast this year. We now have new jobs in every sectors growing, from finance (NY), college (Boston), healthcare (east coast), government (Washington DC), entertainment (Los Angeles), oil and gas (Texas), i…

I’ve been trying to learn a little about economics. Do you have any favorite economists, etc that you follow? I’m trying to learn more about the interaction of QE, rising fed rates, growing deficits, etc.

Basically, I’d like to move beyond the headlines and the spin.

[Update]

Here are some people I try to follow:

Jan Hatzius - Goldman Economist

Robert Schiller

Stephen Roach - Yale Economist https://www.project-syndicate.org/columnist/stephen-s--roach

Jeremy Grantham - GMO

Ray Dalio - Bridgewater

Larry Summers

Re: Second-quarter US GDP growth revised up to 4.2 percent on software, trade

#10

Post by mcphage » Thu, Aug 30, 2018, 1:33 AM UTC

user1324345 wrote: post #4

[flagged]

And all it took is Republicans abandoning their perennial platform of cutting spending and free markets. I wonder what else they were complete wrong about?