Decent economic news, it appears:
The economy logged a solid 3.8 percent growth rate in the first quarter of 2005, a performance that was better than previously thought and a fresh sign the expansion is on firm footing.
The new reading on gross domestic product, released by the Commerce Department on Wednesday, marked an improvement from the 3.5 percent annual rate estimated for the quarter just a month ago and matched the showing registered in the final quarter of 2004.
GDP, the broadest gauge of the economy’s health, measures the value of all goods and services produced within the United States. Stronger spending on housing projects, more investment by business in equipment and software, and a trade deficit that was less of a drag on economic growth all played a role in the higher first quarter GDP estimate…
Although economic activity is solid, job creation is choppy. Employers boosted payrolls by just 78,000 after a hiring spurt of 274,000 in April. May’s job gain was the weakest in almost two years. Economists offered various reasons for May’s slower job growth, including the toll of high energy prices.
It is just so clear, to me, at least, that our future economic viability is dependent on an energy solution.
jcricket
John – I concur (about the energy solution). Along with an energy policy, I believe that a comprehensive solution to the rapidly rising issue of healthcare costs is also 50% of the issue. Resolving those two drags on the economy would go a long way towards ensuring Americas continued ability to maintain economic growth.
Also – think how great it would be to be free to tell all those despotic, yet oil-rich, regimes to buzz off. If we didn’t require all their oil we’d have a lot more leverage in telling the undemocratic leaders of those countries to shape up or we’ll stop our aid, or stop buying whatever goods they produce besides oil.
Kimmitt
Economists offered various reasons for May’s slower job growth, including the toll of high energy prices.
This means, “We have no fricking clue.” FYI.
Birkel
When did 3.8% growth become decent?
Then, if you will, call Europe to let them know they’re not even decent… by a long shot.
Kimmitt
A one-quarter spike of 3.8% is decent, and we need a full 1% more growth than Europe to get the same per-capita result, since our population grows at about 1% per year while theirs is more or less constant.
US trend is 3.2% or so.
p.lukasiak
Considering the fact that energy prices are skyrocketing, does the increase from 3.5% to 3.8% annually really represent growth — or is it really just a reflection of higher energy prices?
(Think of it this way… are you spending 0.003% more of your total income for gasoline? If you make $40K a year, did you spend $30 more on gas in the last quarter because of higher gas prices? If so, and you haven’t cutback elsewhere, your “gross personal product” increased….but you sure don’t have anything else to show for it.)
Kimmitt
Growth is in “real” GDP terms, which includes adjustment for inflation, including energy inflation.
Now, if you want to get into the bundle used for the CPI, well, you’re a braver man than I.
Birkel
Kimmitt,
You are as incompetent as you are partisan.
Good luck with that.
Kimmitt
Man, that was random.