Of course, the economy won’t come back

As the P³ keeps telling us people save after a recession. There will be no economic bounceback:

U.S. GDP growth remained strong at 6.5% in the second quarter, sufficient to push GDP above its pre-pandemic level. Growth topped the fourth quarter’s revised 6.3%, according to the Bureau of Economic Analysis’ preliminary estimate. Annual revisions altered prior data back to 1999. Strength was led by consumer spending as consumers benefited from two rounds of stimulus. Fixed nonresidential investment and exports also contributed to growth. Inventories and imports were the largest offsets. Real disposable income plunged 30.6% as stimulus faded. Income soared 57.8% last quarter. The saving rate dropped to a still-high 10.8% from 20.9%.

Oh, right.

3 thoughts on “Of course, the economy won’t come back”

  1. But Tim – that is not spending the state directs and more importantly where is his cut of that largesse? These are the ‘big Issues’ – how does he get a share of the money in perpetuity and more importantly power to direct future sources of revenue?

  2. Strength was led by consumer spending as consumers benefited from two rounds of stimulus.

    You need to be careful with this. He might notice that you seem to be suggesting that it doesn’t matter much if the economy shuts down since the government can just open it up again with fiat money stimulus. He’ll like that.

  3. Rosy economic claims are under Johnson gang in UK and Biden gang in US. Neither are at all trustworthy. Cant say for USA but what is going on in UK is no 7.6% PA growth as was claimed the other day.

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