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Thursday, October 27, 2011

Economy Shows Modest Growth


“The U.S. economy grew modestly over the summer after nearly stalling in the first six months of the year, lifted by stronger consumer spending and greater business investment. The Commerce Department said Thursday that the economy expanded at an annual rate of 2.5 percent in the July-September quarter. That’s nearly double the 1.3 percent growth in the April-June quarter, and a vast improvement over the anemic 0.9 percent growth for the entire first half of the year…. Consumers spent at an annual rate of 2.4 percent — more than triple the rate in the spring.” (Washington Post)

Apparently consumer spending doesn’t reduce unemployment after a recession.

FEE Timely Classic
“Consumer Spending Doesn’t Drive the Economy” by Mark Skousen