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'Best-Looking' GDP Drop You'll Ever See

'Best-Looking' GDP Drop You'll Ever See | GDP | Scoop.it
Negative economic growth in the fourth quarter provided a scary headline to start Wednesday's trading but probably little else in market impact.
John Duong's insight:

Peter Schiff should listen to Paulsen because he is overreacting about the decline in GDP due to government spending cuts. The fluctuation in the GDP isn't an instant indicator of a potential recession that may or may not occur in the near future.

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Zachary Beery's curator insight, February 7, 2013 11:46 AM

This article says that th recent drop in GDP isn't that bad cause it is mostly due to the recent cut in goverenment spending. this is pretty much just the drop before the big leap that hopefully comes soon.

Sarah Nguyen's curator insight, February 14, 2013 4:58 AM

Even though the GDP has dropped at .1 percent, it is reassuring to know that it is largely because of government spending and business inventories. Consumer spending and the private sector in general was able to grow more than the previous quarter, even despite the natural disaster Sandy.

Patrick Demitis Brown's comment, February 21, 2013 12:06 AM
GDP is probably going to be just as low or lower in the second quarter, once we've gotten rid of the payroll tax cuts. Im not sure how our congress isn't doing anything about that, this will increase taxes, defense spending going down, the number of consumers able to spend will go down and GDP will go down more sooo......
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U.S. Growth Halted as Federal Spending Fell in 4th Quarter

U.S. Growth Halted as Federal Spending Fell in 4th Quarter | GDP | Scoop.it
The government played a role in slowing the economic recovery as cuts in military spending and other factors overwhelmed the Federal Reserve’s expanded campaign to spur growth.
John Duong's insight:

Despite the decrease in GDP,only due to the cut in government spending, the increase of consumer spending is good news and displays how the economy is indeed expanding in a positive slope. 

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Bo Li_1's curator insight, February 6, 2013 12:50 PM

It seems that this article says the the government has significantly decreased in military spending. As a result, it seems that US economy will also suffer a decrease in GDP.

Andrew Alter's curator insight, February 6, 2013 6:51 PM

The economy may have shrunk, but it shrunk in the most unharmful way for the average American. Government spending substantially decreased,  notably in the military, which allows for future government spending in domestic areas.

Matt Kellogg's curator insight, February 6, 2013 9:57 PM

govenment cut a lot of defense spending. Economy didnt decline much considering how much was cut

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The only chart you need on the GDP report

The only chart you need on the GDP report | GDP | Scoop.it
Last quarter's GDP report has been been called "the best-looking contraction in US GDP you’ll ever see." Here's the exact picture it paints.
John Duong's insight:

This simple graph allows the average consumer to understand how the GDP declined from the fourth quarter of 2012. By displaying the major decrease in government spending and the increase of consumer spending, the average consumer would feel more inclined to contribute to the increase of consumer spending, thus spending more on goods and services.

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Zachary Beery's curator insight, February 7, 2013 11:44 AM

This chart shows the percent change in each department of the GDP. Whether it is going up or down. It shows an increase in consumer spending so that is a good sign for the economy.

Sarah Nguyen's curator insight, February 13, 2013 8:09 AM

This article and it's graph of the breakdown of the GDP is very reader friendly and easy to understand. It is very clear and obvious that the components of the GDP that are making the whole suffer the most are business inventory and federal defense spending. While reading, there was one comment by another reader that especially caught my eye. They reasoned that because many people were anticipating a pro-business Romney to win the election in the third quarterr of 2012, they planned ahead with increased inventories and expansion.

Patrick Demitis Brown's comment, February 20, 2013 11:43 PM
I'm not sure if disappointing is the correct word to describe the drop in GDP, I think "expected" fits better. since we've all known obama has been pushing to cut billions of dollars in defense spending which the chart clearly shows. that means there is that much less goods being produced and that many less people in the workforce not getting paid or able to act as a consumer in our economy.