U.S. Economy: GDP Shrinks in Worst Slump in 50 Years
April 30th, 2009Via: Bloomberg:
The U.S. economy plunged again in the first quarter, making this the worst recession in at least half a century.
Gross domestic product dropped at a 6.1 percent annual pace, weaker than forecast, after contracting at a 6.3 percent rate in the last three months of 2008, the Commerce Department said today in Washington. The report, which reflected a record slump in inventories and further declines in housing, came hours before Federal Reserve officials said the economy continued to contract at a “somewhat slower” pace.
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And this is just GDP, which is more a measure of economic activity than “size” or productivity (Katrina caused a boost in GDP). When you figure in the crowding-out effect of all the misguided government spending that has been going on, and the productivity losses associated, the true figures are no doubt much, much worse.
Unless you believe pork and GM are good investments.