Chart of the Day

The economy is growing and the Republican presidential candidates are lying about it. Via Steve Benen from his new place at Maddow Blog the latest GDP numbers in context:

Benen notes:

It’s important to realize, though, that 2.8% growth is hardly a breakthrough or evidence of a robust recovery. Under normal conditions, a figure like this would suggest the economy was fairly healthy and growing at a steady pace, but therein lies the point: these are not normal conditions. Given the severity of the Great Recession, and how much ground there is to make up, we’d much prefer to see a significantly higher number.

And we won’t see that higher number until businesses begin to spend the trillions of dollars they’re holding in cash reserves.

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  • Guest

    “And we won’t see that higher number until businesses begin to spend the trillions of dollars they’re holding in cash reserves.”

    And they won’t spend their cash rserves until they have more paying customers demanding more stuff – i.e., a reason to expand.

    And unless the federal and state governments get their asses into gear and start borrowing at the current near-zero interest rates for loans so they have money to throw at infrastructure and research, there won’t be any customers with enough cash in their pockets to create more demand.

    But no. We must lay off all those state and federal employees and not borrow a single dime. “You have to spend money to make money” apparently is an entrepreneurial concept alien to your average economically retarded voter.

    • muselet

      “You have to spend money to make money” apparently is an entrepreneurial concept alien to your average economically retarded voter Republican legislator.

      The average voter, economically retarded or not, could be convinced that “investing in our future” is a good thing. The bleating about debt and deficits could be driven out of our public discourse by calm, rational voices. I don’t think it would actually take all that much effort to turn the debate around, even after thirty years of “government is the problem” inanity.

      Convincing Republicans to do the right thing for the nation they so conspicuously (and self-consciously) claim to love, though, would be much harder to do.

      –alopecia