• Focus News EU is an independent media based in Europe
  • providing the world's latest news, the definitive source for independent journalism from every corner of the globe.

Fueled by Private Spending, US Economy Posts Highest Growth on Record

Business Chloe 4weeks ago (10-29) 9Views
文章目录[隐藏]

Twitter CEO Says Its Platform Has No Power to Influence Elections

Twitter CEO Jack Dorsey told Sen. Ted Cruz (R-Texas) at a Senate committee hearing Wednesday that Twitter does not have the ability to sway elections because the social media giant is only one platform used to disseminate information. During the hearing of the Senate Committee on Commerce, Science and Transportation, Cruz pressed Dorsey about whether his company has the power to influence elections. “No, we are one part of a spectrum of communication channels that people have,” Dorsey said, adding, “people have choice of other communication channels.” Cruz responded by saying, “if you don’t think you have the power to influence elections, why do you block anything?” Dorsey replied by saying Twitter has “policies that are focused on making sure that more voices on the platform are possible,” adding that, “we see…

Fueled by Private Spending, US Economy Posts Highest Growth on Record

WASHINGTON—Following a record downturn, the U.S. economy expanded by 7.4 percent over the prior quarter and at a 33.1 percent annual rate, posting the strongest recovery in recorded history.

The Bureau of Economic Analysis released its first estimate of third-quarter real gross domestic product (GDP) on Oct. 29. Strong growth between July and September this year reflected continued efforts to reopen businesses and resume activities following COVID-19 lockdowns, the Commerce Department reported.

The 33.1 percent growth doubles the previous record set back in 1950. Several months ago, economists were expecting GDP to rise between 10 and 15 percent in the third quarter.

The third-quarter growth reflected a robust pace of expansion in consumption, housing, and business investment.

“The recovery that began in the third quarter has been robust enough that coming back from the bottom appears notably less daunting than it did just a few months back,” Ellen Zentner, chief U.S. economist at Morgan Stanley said in a report.

Economist and Epoch Times columnist Stephen Moore defined the growth as a “super V-shaped recovery.”

“Adding to the good news is that all of this growth was private-sector growth—none of it came from government ‘stimulus.’ The government actually shrank slightly in the 3rd quarter. Private spending was up 40 percent and the best news of all was that private investment soared by 83 percent,” he wrote in a blog.

Fueled by Private Spending, US Economy Posts Highest Growth on Record

Trump Versus Biden

The Commerce Department’s GDP report comes a few days before the November presidential election. President Donald Trump and his Democratic challenger Joe Biden offer widely different views on economic growth.

Trump wrote on Twitter on Oct. 29: “GDP number just announced. Biggest and Best in the History of our Country, and not even close.

“Next year will be FANTASTIC!!! However, Sleepy Joe Biden and his proposed record setting tax increase, would kill it all. So glad this great GDP number came out before November 3rd.”

Tim Murtaugh, communications director for the Trump campaign, said in a statement that the record economic rebound is a “validation of President Trump’s policies which create jobs and opportunities for Americans in every corner of the country.”

He highlighted the Trump administration’s policy of “cutting taxes and reducing regulations and red tape,” which he said “clear the way for American ingenuity and our entrepreneurial spirit to thrive.”

Biden, however, reflected a completely opposite view on the economic report.

In a statement, he accused Trump of failing to take action earlier to get control of the outbreak.

“This report underscores three inescapable truths about Donald Trump’s economy: we are in a deep hole and President Trump’s failure to act has meant that Q3 growth wasn’t nearly enough to get us out of; the recovery is slowing if not stalling; and the recovery that is happening is helping those at the top, but leaving tens of millions of working families and small businesses behind,” he wrote.

Fueled by Private Spending, US Economy Posts Highest Growth on Record

Drivers of Q3 Growth

The increase in GDP was fueled by growth in consumer spending, private inventory investment, exports, nonresidential fixed investment, and residential fixed investment. The growth was partly offset by decreases in federal, state, and local government spending following the expiration of the CARES Act relief funding.

Consumer spending, which makes up about 70 percent of the U.S. economy, grew by 40.7 percent in the third quarter, led by increases in motor vehicle, clothing, and footwear sales. The growth in private investment (83 percent) was mainly driven by a sharp increase in equipment investment (70 percent) and residential fixed investment (59 percent).

Current‑dollar GDP increased $1.64 trillion in the third quarter to a level of $21.16 trillion, recovering significant loss it recorded due to the pandemic. In the second quarter, GDP decreased $2.04 trillion.

The Commerce Department report also noted that disposable personal income fell by 13.2 percent in the third quarter after surging by 44.3 percent in the second quarter, driven by historic levels of federal stimulus. At the same time, personal savings fell to $2.78 trillion in the third quarter from $4.71 trillion in the preceding quarter. Both figures suggest a drag on consumer spending in the fourth quarter.

Despite strong third-quarter data, the full-year result will likely still be a contraction once the final quarter result comes in, according to forecasters. Economists expect the GDP to grow through the fourth quarter, though more slowly, due to uncertainty surrounding the virus and a possible second wave.

“The V-shaped recovery in the U.S. may start to swoosh in coming months if the latest wave of the pandemic leads to renewed lockdown restrictions,” Ed Yardeni, president and chief investment strategist of Yardeni Research, said in an email to clients.

“Housing-related businesses should continue to boom even during the winter months, but another round of voluntary and enforced social distancing would likely weigh hard on many services businesses that were especially hard hit during the initial wave of the pandemic.”

Jobless Claims

A separate report from the Labor Department on Oct. 29 also showed that 751,000 people filed for state unemployment benefits in the week ending Oct. 24, a drop of 40,000 from the previous week and the lowest since the lockdowns delivered their colossal blow to the economy in March.

Weekly jobless claims hit a record 6.867 million in March and, aside from several upticks, have fallen ever since. So far, the economy has recouped just over half of the 22.2 million jobs lost during the pandemic.

“New unemployment claims are lower, but hardly in the realm where we can take a great deal of reassurance from the present situation or near-term outlook. There are still some 22.6 million individuals receiving some form of unemployment compensation in the latest week, enough to fill a major American city,” Mark Hamrick, senior economic analyst at Bankrate, told The Epoch Times.

Tom Ozimek contributed to this report.

Follow Emel on Twitter: @mlakan

Focus News: Fueled by Private Spending, US Economy Posts Highest Growth on Record

Democratic Mayor of Small Working Class Pennsylvania Town Endorses Trump

A Democratic mayor of a small Pennsylvania town is endorsing President Donald Trump. The mayor of聽Carbondale, Justin Taylor, has been a Democrat his whole life, but now says the Democratic Party has changed and is moving toward socialism. He鈥檚 endorsing Trump in part because he spurred economic growth, and slashed corporate tax rates. From NTD News Focus News: Democratic Mayor of Small Working Class Pennsylvania Town Endorses Trump


The article is from the Internet, and the content does not represent the position of this website.丨This website usesBY-NC-SAagreement for authorization
please indicate the link for reprint:Fueled by Private Spending, US Economy Posts Highest Growth on Record
Likes (0)