US economic growth slower than economists thought

[Kidlicious]

Originally posted by Oerdin
The fed's job is to crush inflation then worry about growth. That's the lesson of the 1970's stagflation and NPR is saying that's what the fed will do. Tighten to kill inflation then try to restart growth. 3% is still good compared to Europe but not good compared to Asia. With the fed tightening and inflation still rearing its head we can expect growth to slow. It will help if energy prices go down but the economist is saying supplies are super tight and China's demand keeps soaring so I'd go long term bullish on oil prices especially since dumya refuses to increase fuel economy standards. Sadly cars & trucks in the US got better gas milage in 1987 then they do today and we're driving more then ever. That means the US is becoming more of a glutton when it comes to oil and we will continue to consume more.

The thing is that oil supply is the constraint on growth right now. Whichever economy can get the oil will grow. Sending the economy into a recession is just giving up, and letting China win.

[DanS]

Productivity growth is not what is keeping the economy for growing though. I don't think productivity growth is adding to economic growth right now.

[RGBVideo]

Annual 3.1% rate below economists' estimates

So that's only, what, 1 000 % faster growth than what France is currently having?

[Japher]

All signs are pointing to a positive job outlook for the more than 1.2 million graduates of the class of 2005. College grads of all majors will see increases in hiring and salaries, the best graduate hiring season since the job boom of the mid-1990s.

Twenty percent of hiring managers plan to hire more associates, bachelors and masters graduates in 2005 than they did in 2004, according to the Collegiate Employment Research Institute (CERI) at Michigan State University. In a similar study, the National Association of Colleges and Employers (NACE) reports that employers expect to hire 13.1 percent more new college grads in 2004-05 than they hired in 2003-04.

CERI reports two key factors are shaping the labor market: productivity demands and skill requirements.

According to NACE's Spring 2005 Salary Survey, the top 10 jobs for grads and their corresponding salaries are:
Accounting (Private) - $44,564
Management Trainee - $35,811
Teaching - $29,733
Consulting - $49,781
Sales - $37,130
Accounting (Public) - $41,039
Financial/Treasury Analysis - $45,596
Software Design and Development - $53,729
Design/Construction Engineering - $47,058
Registered Nurse - $38,775

LINK

Nothing to see here, move a long...

[Dinner]

Originally posted by VJ

So that's only, what, 1 000 % faster growth than what France is currently having?

For the US that is a disappointing figure. Normally our model is much more dynamic then the French statist model. Rather, it is normally outperforms the French statist model by a much wider margin.

[Kidlicious]

Originally posted by Japher

CERI reports two key factors are shaping the labor market: productivity demands and skill requirements.

And yet real wages as a whole are stagnant. The supply of needed workers is constraining the system. If you don't have these skills it looks pretty bad, and since most unemployed people don't have these skills increasing productivity doesn't translate into economic growth.

[DanS]

More like, we add more labor than the French do each year, and thus have higher economic growth.

The French do fine and often better than the US with regard to economic growth per capita. Nowadays, it's much easier to diss the Germans.

[RGBVideo]

I thought they both have 0.1% - 0.3% economic growth for 2003-2005 and 0% population growth?

[DanS]

France had economic growth of 2.3% in 2004 alone. I think you're confusing Germany and France.

[RGBVideo]

Meh. Probably true. Replace all "France"s on my posts above with "Germany"s.

[MichaeltheGreat]

Re: US economic growth slower than economists thought

Originally posted by Kidicious
Slowest GDP growth in 2 years



People are talking about stagflation.

So? God, how I love volatile, indecisive markets. If it wasn't for those anal NYSE and FRB bastards and freeriding regs.

[Lawrence of Arabia]

join the peace corps, come back in two years, and the economy will be roaring.

[el freako]

Originally posted by DanS
More like, we add more labor than the French do each year.

Don't you mean just last year?

In 2000-2004 employment rose by 2.5% in France compared with a 1.7% rise in the US (and a stunning 15.9% rise in Spain)

[DanS]

I meant that over the long term, the US adds more labor than does France. I'm not talking with any precision here. I fully realize that there can be long stretches where labor participation does interesting things.

[Kidlicious]

Originally posted by DanS
I meant that over the long term, the US adds more labor than does France. I'm not talking with any precision here. I fully realize that there can be long stretches where labor participation does interesting things.

Kind of contradicting isn't it. Who cares about the ancient past?