LAT: Data Spark Worry Over the Economy

[DeepModem Mom]

(We here at DU have been "worried" for quite some time!)


Data Spark Worry Over the Economy
Estimates of first-quarter growth are cut amid signs that gasoline prices are hurting consumer spending.

By Nicholas Riccardi, Times Staff Writer


A pileup of disappointing economic reports, including evidence that high gasoline prices are finally throttling consumer spending, is sparking concern that U.S. economic growth might be slowing.

The White House said Wednesday that energy costs had become a drag on the economy and that President Bush planned to give a major speech on energy policy next week. Also Wednesday, the Commerce Department reported that retail sales last month were surprisingly weak.

The retail news, which came on the heels of a report that the nation's trade deficit had hit yet another record in February, triggered a sharp decline in stock prices and spurred several analysts to lower their estimates of U.S. growth.

Although most economists believe that the U.S. is generally on solid footing and that gasoline prices might be ready to fall — the benchmark crude oil price dropped again Wednesday — the barrage of dispiriting economic data has sparked widespread jitters....

***

The concern is that, pinched by pump prices, people are reining in spending on other things. On top of that, the bulging trade deficit shows that consumers' money is going less to U.S. companies and more to firms overseas. Finally, job growth remains anemic, possibly making shoppers even more reluctant to buy....


http://www.latimes.com/business/la-fi-econ14apr14,0,1223223.story?coll=la-home-business

[The White Tree]

1. Wow- Sounds like George hit the Trifecta again

"The concern is that, 1) pinched by pump prices, people are reining in spending on other things. On top of that, 2) the bulging trade deficit shows that consumers' money is going less to U.S. companies and more to firms overseas. Finally, 3) job growth remains anemic, possibly making shoppers even more reluctant to buy...."

Is it dumb luck or just that he's dumb?

:dilemma:

[wicket]

2. But...but....the economy is growing and growing stronger!

Dubya told me so! :puke:

[Yavin4]

3. I Wish I Was An Economist

That way I could be completely shocked all of the time. Let's see, no jobs, higher interest rates, higher gas prices, a new BK law, and WOW! look consumers are cutting back on their spending!!!! AMAZING!! People aren't spending money they don't have!!!!! That's Incredible!!!! Who would have thunk it!!!

[shrike]

14. Easy way to make a living, isn't it?

You're wrong all the time and they still pay you -- kind of like being a weatherman.

[wallwriter]

4. Why not mention

peak oil and the 7 trillion dollar national debt.

[UpInArms]

5. sheesh! these media people are s.l.o.w.

http://www.jobwatch.org/

Real wages: two years of losses

The economy has been in recovery since late 2001 and has been creating jobs since the fall of 2003. But despite the upward trend for jobs, the hourly wages of most workers (the 80% of workers who are in manufacturing or non-managerial services) have failed to keep up with inflation over the last two years. In the first quarter of 2005, real (i.e., inflation-adjusted) wages were 0.2% below those of the same quarter a year earlier. Real wages have fallen 0.3% over the last two years after rising by 2.0% over the prior two years starting in early 2001. The chart below shows the worsening real wage trends since early 2001. This erosion of real wages despite rapid productivity growth and continued job growth is disappointing and a real detriment to working families' living standards.



<snip>





...more...

guess people are just not eating their houses fast enough :sarcasm:

[DeepModem Mom]

8. Thanks for the graphics, UpInArms! nt

[callous taoboy]

6. No, it's the drag on my wages plus an increase

in my property taxes to offset your tax cuts to your wealthy buddies, Mr. Bush, that are making me openly rebel against any spending that isn't absolutely necessary. Well done!

[mhr]

7. most economists believe that the U.S. is generally on solid footing

I wonder what solid footing that would be since job growth is the worst since the great depression and we are missing at least 11.3 million new jobs in this economy.

------

On Job growth, the experts agree:

"Overall, this level of (job) creation represents the worst job performance since the Bureau of Labor Statistics began collecting monthly jobs data in 1939 (at the end of the Great Depression)."

http://www.jobwatch.org /

"In the previous five expansionary economic cycles the average increase in employment over the first 39 months was 10.1%. In the current cycle the increase is 1.5%.

If employment had climbed by 10.1 % since November 2001, we would have added 13.2 million jobs instead of the 1.9 million actually reported. That’s a difference of 11.3 million jobs."

http://www.comstockfunds.com/screenprint.cfm?newsletterid=1165

My Conclusion: The American middle class is fast approaching demise and will need life support to survive!

[barb162]

11. there was huge job creation...all offshore

[lyonn]

13. Those are serious statistics

The media does not say crap about the job market. Like it doesn't really factor in, only what the corps are making (gee, if they are showing a profit what's the problem) and fuel cost (get those under control and all will be well). We are being bs again. No jobs or pay cuts means no money to spend.

[BillZBubb]

9. Don't worry, gays can't get married!

Marriage is safe! And there won't be any evil stem cell research!

Things couldn't be better, Dubya says so.

[applegrove]

12. Exactly. The whole shell game to get Bush elected. None of it

means anything. The Christians and rurals were just used for their votes. The rich have had an extended amount of time to divest out of American stock & money and save their empires. The middle class have been lured into buying houses they will not be able to afford in the near future.

Criminal the losses that will pile up and the transfer of wealth from the rich to the poor through the monopoly the elites have on the markets under this administration.

Look from some other major cash grab to put off the 2001 recession another few years.. Perhaps the WB will soon announce US dollars to be the only world currency for the planet.

Just watch and wait while Bush finds one more way to artificially fluff up the stock market till some democrat gets in and finally has to get America to take a financial correction.

[BurtWorm]

10. OT: Wow! A newspaper copy editor treats "data" as a plural!

:thumbsup: