Noted economist Limbaugh says GDP is "not" growing, declares new GDP figure "phony," a "fake number"
October 29, 2009 12:59 pm ET
From the October 29 edition of Premiere Radio Network's The Rush Limbaugh Show:
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While increased government spending did have an impact on the GDP number, that is exactly what was intended when the stimulus was passed. The money filters through the economy, and it does boost consumer spending and business investment. We've seen automakers restart plants as a result of the $2 billion cars for clunkers program, for example. Those people then have paychecks to spend. That's how government stimulus works. The initial government spending STIMULATES economic growth in other sectors.
Of course, Rush's audience isn't exactly full of people who are fluent in basic macroeconomic theory, so he gets away with these blatant misrepresentations of simple facts.
The most basic fact is that the 3.5% annualized GDP growth is great news for the administration, and for the Democrats in congress who must face voters in a year's time. It represents concrete results in taming the Great Recession. It is proof that the Democrats had the right idea, and to send them packing now, in favor of the do-nothing Hooverites, would be a disaster. And most voters are smart enough to make that connection, no matter how much Rush and his ilk will obfuscate the data.
The Stimulus package artificially got spending going again, which helps negate those scared people not spending. And once that happens, people and businesses and banks stop being scared. It's a vicious circle.
unemployment we still enjoy (and expect to go higher) note the BBC quote later in this thread.
BTW - I find it interesting that certain portions of the US, like Black Forest CO (Colorado Springs) aren't suffering from 9.8% unemployment... Seems, and I don't know this for sure but the democratic enclaves like Michigan, California, NY and others are suffering the MOST.
Again I wonder, but don't really know, if the liberal policies of those state and local governments (in bed with the unions) could have contributed. I will note that Colorado a recent "blue" state is beginning to show signs of deterioration after the democratic governor and legislature have taken over. I suspect Colorado will swing back to a "red" state in the next few years or go the way of California...
Well, in case you missed it, most if not all red states are a net importer of tax revenue. Meaning, they get more in government spending then they pay in taxes. Also, the states with the highest rates of obesity, divorce, and teenage pregnancy are red states.
So, by your thinking, Liberals/Democrats are more fiscally responsible, healthier eaters, more faithful to their spouses, and have the good sense to use birth control methods.
The good news is, Rush is growing.
And whenever he takes those exotic island sex trips, Lil Rush is growing also.
He believes satirical articles from a noted satirical website and even when told that it's fake, he knows it's true!
But when the Commerce Dept says that the economy grew 3.5%, he doesn't believe it... he says it's phony.
At what point do you lose all credibility with your fans?
This guy is responsible for the party of Lincoln becoming the party Palin. Hope you're proud of your hero, GOPers.
The biggest "fake number" of all is the 20 million liateners Rush claims for his radio pukefest.
'Distorted by stimulus'
"It's good to have the economy growing again," said Brian Bethune, economist at IHS Global Insight.
Comparison GDP figures
"But we don't think that rate of growth is sustainable because it is distorted by all the government stimulus.
"The challenge here is to get organic growth - growth that isn't helped by fiscal steroids."
Analysts cautious about the slow nature of the US economic recovery point to the fact that the unemployment rate currently stands at 9.8%, and that the labour market traditionally lags behind any wider economic recovery.
They also highlight the fact that the big car firms have already reported a sharp fall in September sales following the conclusion of the popular $3bn cash for clunkers scheme at the end of August.
"You can say that the recession is over, but it sure won't feel like that," said Dean Baker, co-director of the Centre for Economic Policy Research.
"There is a lot of downward momentum that isn't going to go."
Limbic really needs to see America suffer. In small part because he can't own part of a sports team. In large because we've rejected him at the poles to often in the last few years. We need to suffer till he's surfeited with our pain and, he feels ready to accept America's Rightful Ruler for Life.
This may actually be true for most of his regular listeners. In one jughead ear and out the other without slowing down.
I was once an employer of 4 people, and though I wasn't poor, I certainly wasn't making anthing close to $100,000 a year. And do you know why that was? Because I actually paid my employees well. How's that for a concept?
Rush Limbaugh is a radio DJ with a big mouth who says the things that you want to hear. He's laughing at you.
Your desperation is showing.
Uh, no, the Bush economy grew on the house of cards built on credit and then the bill came due when Wall Street collapsed. Obama avoided a full-blown depression. I know this only happened several months ago, but you really must pay better attention.
And for the record, the Bush economy resulted in negative net job growth, the first time that's EVER happened in the history of the US of A.
The Halliburton economy also grew WITH Bush throwing two wars costing $12 BILLION/month at it . . . Yup, that's also money your grandkids will pay back . . .
Swing and a miss . . .
It sure is. I remember Kneel Craputo used to practically have an on-air orgasm whenever the Dow poked over 9000 in the last days of the Bush administration . . .
"'Distorted by stimulus'
"It's good to have the economy growing again," said Brian Bethune, economist at IHS Global Insight.
Comparison GDP figures
"But we don't think that rate of growth is sustainable because it is distorted by all the government stimulus.
"The challenge here is to get organic growth - growth that isn't helped by fiscal steroids."
Analysts cautious about the slow nature of the US economic recovery point to the fact that the unemployment rate currently stands at 9.8%, and that the labour market traditionally lags behind any wider economic recovery.
They also highlight the fact that the big car firms have already reported a sharp fall in September sales following the conclusion of the popular $3bn cash for clunkers scheme at the end of August.
"You can say that the recession is over, but it sure won't feel like that," said Dean Baker, co-director of the Centre for Economic Policy Research.
"There is a lot of downward momentum that isn't going to go."