By Lucia Mutikani
The U.S. economy (click here) likely gained steam in the second quarter, with the pace of growth probably the second fastest in 38 years, as massive government aid and vaccinations against COVID-19 fueled spending on travel-related services.
The anticipated acceleration in gross domestic product last quarter would lift the level of GDP above its peak in the fourth quarter of 2019. Even with the second quarter likely marking the peak in growth this cycle, the economic expansion was expected to remain solid for the remainder of this year.
A resurgence in COVID-19 infections, driven by the Delta variant of the coronavirus, however, poses a risk to the outlook. Higher inflation, if sustained, as well as ongoing supply chain disruptions, could also slow the economy. The Commerce Department will publish its snapshot of second-quarter GDP growth on Thursday at 8:30 a.m EDT (1230 GMT)."
I already discussed the issue with the increase in products reflected in the Consumer Price Index (click here) which enters at about 6 percent. That is high, but, it isn't as though the cost of producing goods and services increased, it is just that the HIGHER DEMAND punished those newly empowered to be seeking goods they could not before the stimulus was awarded. The Republican Party prides itself on supply-side economics.
Well, this year is a clear illustration of greed as the driving factor in supply-side economics. It costs no more to produce the products by the increased cost is suppose to slow the demand to "fit" the supply chain and production. The demand is not going to slow down because the Lower Middle Class and impoverished in the USA have been empowered for upward movement. The reality of this new government policy, as illustrated in the child tax credit, is about empowerment. The demand is not going away. The idea product manufacturers could get away with all this greed in the face of empowerment is outrageous.
Consumers have plenty of income and wealth ammunition to support consumer spending, while business inventories remain lean and restocking efforts are poised to support business investment and overall GDP growth substantially in the second half of the year," said Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina....
To get back to the current federal budget, the US Senate needs to pass it.
STOP PLAYING POLITICS WITH THE LIVES OF AMERICANS TO BENEFIT WALL STRETT CRONIES!
