“Consumers, who account for 68.2% of the economy, accelerated spending by 10.7% in the quarter, compared to a 2.3% increase in the previous period. The expenditures were largely focused on goods, which increased 23.6%, but spending on services, which had been the missing link in the recovery, still grew by 4.6%.
Big consumer spending came thanks to another round of stimulus checks, this time for $1,400.“
Great news for the economy.
Congrats to president Biden and the Democrats in congress for a job well done pushing though the stimulus.
That’s what happens when the fed prints and peppers 4 trillion stimulus dollars into the economy over a 12 months period. We saw this movie before from 2007-2008.
Now we pray everyone that says debt to gdp doesn’t matter are correct and be ready to live with zero and soon to be negative interest rates forever.
You have to go back to Bush Jr for its start. 800 billion is what TARP cost at the beginning of 2008 and then Obama just added on to it, then Trump, now Biden in big form which is why we have been more or less in a bull market since 2009.
It does have consequences though. It really is to late to turn back the printing presses now. Hold on
As long as there is wage growth, capital investment (and not the hoarding done in the form of buybacks and labor shedding), and a solid debt-trade balance, sure.
Long term, the ‘growth’ model and all of its attendant assumptions, has got to go. It no longer accounts for the closed-system feedbacks of transnational economic exchange, or even worse, the off-book and socialized costs.