That rise in the Gross Domestic Product might be a “mirage.” How so? “If a scientist or engineer is laid off, does it affect gross domestic product? The third-quarter GDP figures, released on Oct. 29, showed the economy growing at a 3.5% annual pace, breaking a string of four consecutive negative quarters. The growth was driven mostly by a surge in the production of motor vehicles and other manufactured goods. This number was greeted by many economists and journalists as confirmations that the recession is over. What's more, the rise in real GDP, combined with a sharp fall in employment in the third quarter, implies that productivity also soared during the period. Good news, right?”
Not so fast.
Cut back on your future at your own risk...Add GDP Mirage: As friend,
blogger and political pundit Russ Snyder put it so well, “Add It's a truism in business that when times are tough, you cut back on coffee and toilet paper, but not on R&D. That's your seed corn. When Apple Computer was on the ropes in the early 1990s (and their stock was around $25), the cut everything BUT R&D, which they INCREASED. Now we have the iPod, iPhone and who-knows-what-else in the pipeline. Companies that were probably going to fail anyway may be cutting R&D, but not the smart ones.”
Yeah, they must be building bridges...“
Last week alone, more Californians filed for jobless benefits for the first time than the number of jobs created by the “stimulus” since it passed nearly nine months ago. The Golden State
had largest increase in claims for benefits (of any state) with 5,774 citizens asking for government help after being laid off (H/t
Instapundit).
“
According to recovery.gov, the “
so-called stimulus” created (or saved) 2,260 jobs in the Golden State since the President signed the bill in February. At that time, the Golden State’s junior Senator, Barbara Boxer, heralded Senate passage of the legislation, promising it would ‘
put Californians to work. This bill will put Californians to work now building the highways, bridges, transit and rail systems, and renewable energy sources of the 21st century.”
The data show layoffs “i
n the construction, services and agricultural industries.” So, maybe 2,260 Californians are building bridges for the state. 5,774 fewer are building other things (or otherwise engaging in productive and remunerative activities -H/t for this entire section
Gay Patriot.)
Overstating the obvious...An early progress report on President Barack Obama's economic recovery plan overstates by thousands the number of jobs created or saved through the stimulus program, a mistake that White House officials promise will be corrected in future reports
Maybe they know something...According to the non-partisan Congressional Budget Office, “public option premiums will be higher than private plans.” The story goes on to say, “The public insurance option would typically charge higher premiums than private plans available in the exchange, according to the CBO analysis of the House bill. That surprising conclusion raises doubts about Democratic promises that a government-run insurance plan would provide a lower-cost alternative to consumers. At the same time, it calls into question Republican charges that the plan amounts to government takeover of health insurance -- because only 6 million people would enroll in the plan, according to the CBO.”
