The United States Economy, A Twisted Tale of Statistics

In further proof that one should take a look at several or more statistics, in isolation, to evaluate the force and momentum from the economy, in the last couple of days several statistics were released suggesting conflicting tales in direction of the united states economy.

Inside a apparently positive release, the Department of Commerce mentioned the US economy increased in a quicker than expected .4% within the 4th quarter of 2012. Indeed, the annualized figure was much better than previous estimates of .1% growth, reflecting elevated investments in plant and equipment. Nevertheless, regardless of the upward revision, the Department cautioned the economy continued to be sluggish, which certainly wouldn’t surprise many people. Digging a little much deeper, home loan business defense spending and government expenses hurt economic output which caused an impressive slowdown in the third quarter. You could also conclude that the rise in plant and equipment spending is at medicare part a discharge of pent-up demand, given many businesses delayed spending and upgrading equipment for several years. With all this postulation and also the ongoing reduction in federal spending, you have to question the non-public sector’s capability to increase spending in a more powerful pace compared to decrease in government spending?

In addition, because of the recent trends, it’s more and more not as likely the GDP will outpace the development achieved this year where the GDP increased 2.2%. For instance from the government’s look at the still sluggish economy, inside a report released a week ago, the united states Fed stated, regardless of the modest strengthening from the economy, additional stimulus measures are needed to underpin the recovery.

In searching at another statistic, you could conclude the economy is weakening. Regardless of the decrease in US joblessness claims, the amount of people on federal food stamps has arrived at an exciting-time record in america. Based on the U . s . States Department of Agriculture, this year, the meals stamps program was the greatest it’s have you been, with typically 46,609,072 people around the program each month of 2012. 47,791,996 everyone was around the enter in the month of December 2012. The us government also states that the amount of households on food stamps was 22,329,713. This certainly does not show positive momentum throughout the economy, unless of course the first is searching in the momentum of food stamps.

By condition, Texas had the greatest average quantity of participants monthly this year, by having an astonishing 4,038,440 people drawing in the program. This means roughly 15.5% of Texas’s population. The 2nd greatest is California, with 3,964,221, after which Florida, at 3,353,064. Washington, D.C., by having an believed population of 617,996, had typically 141,147 participants. Meaning, roughly 23% of people of Electricity take presctiption food stamps, based on the figures supplied by the us government.

By searching at these figures, these discussion around the slow development in the GDP, and also the slightly improving trends of unemployment, you have to question the complete strength of america economy. Yet another frequently missed statistic, the actual unemployment rate, the US joblessness rate as well as the people who are underemployed or threw in the towel on searching for employment, is roughly 14.4%. Not quite a minimal number. Clearly the astounding statistics around the food stamps paint a really concerning picture from the condition of america economy. Using the concerns concerning the Euro zone, and also the recent occasions in Cyprus, the united states economy is not from the forest. Indeed, it’s on very shaky ground, just like any tremor could knock the apparently ever-budding economy off-track.

Why exactly would be the US markets at or near record levels? Possibly that as well is on shaky ground.

In further proof that one should take a look at several or more statistics, in the last couple of days, statistics were released suggesting conflicting tales in direction of the united states economy.

Around the positive side the united states economy increased in a quicker than expected .4% within the 4th quarter of 2012. Yet, the amount of people on federal food stamps has arrived at an exciting-time record in america. This certainly does not show positive momentum throughout the economy, unless of course the first is searching in the momentum of food stamps.