Moving From One Crappy Paying Job To Another Trend

Consumption expenditures as a percentage of GDP, 71.1% as of Q211, have grown steadily since the late 60's. Rising consumption and falling domestic private investment as a percentage of GDP represent money following the global shift in production from West to East. As long as capital seeks better returns from foreign production, these trends will continue. The middle class understands them as moving from one crappy paying job to another.

Personal Consumption Expenditures (PCE) As A %GDP and Personal Consumption Expenditures As A %GDP Average from 1947


Gross Domestic Private Investment (GDPI) As A %GDP and Gross Domestic Private Investment (GDPI) As A %GDP Average from 1947


Headline: Economy grew at slower 1 pct. rate this spring

The U.S. economy grew at a meager 1 percent annual pace this spring, a slower rate than previously estimated. The downward revision will likely increase fears that the economy is at risk of another recession.

Fewer exports and weaker growth in business stockpiles led the Commerce Department to lower its estimate for the April-June quarter from its previous rate of 1.3 percent growth. That means the economy expanded only 0.7 percent in the first six months of the year.

Economists note that nine of the past 11 recessions since World War II have been preceded by a period of growth of 1 percent or less. The weaker growth could rattle an already edgy stock market, which has lost 12 percent of its value since July 21.

The report shows the economy was barely expanding even before this month's stock market plunge. Economists worry that the Wall Street sell-off could cause consumers and businesses to pull back on spending and investment.

Stock futures fluctuated mildly after the report was released.

Source: finance.yahoo.com