Mexicano and Latino Politics and the Quest for Self-Determination by Navarro Armando;

Author:Navarro, Armando;
Language: eng
Format: epub
Tags: undefined
Publisher: Lexington Books
Published: 2012-08-15T00:00:00+00:00

U.S.’s Slow GDP Growth Rate

The economy’s poor GDP growth in 2013 was a salient empirical indicator of both the nation’s economic depression and its failed liberal capitalist system. GDP measures the total economic production within a country within a specified time. It measures a country’s total economic output, which includes everything produced by all people and companies. GDP growth rate refers to GDP’s growth from quarter to quarter, measuring how a country’s economy is performing. If the GDP is increasing it demonstrates economic growth, but if it decreases or falls, it signals a weakening economy. According to the U.S. Bureau of Economic Analysis (BEA), from 1929 to 2012, the average annual growth rate of real GDP was 3.3 percent. The U.S economy during the years 2002–2013, however, had relatively low GDP growth rates. During those years, it was a mere 1.8 percent. From the fourth quarter of 2007 to the second quarter of 2009, real GDP decreased at an average annual rate of 2 percent. Lastly, during the period of expansion, from the second quarter of 2009 to the first quarter of 2013, real GDP increased at an average of 2.2 percent.[23]

The U.S. economy in 2013 continued to be overwhelmed by “the low GDP growth rate crisis.” At the start of the year, the White House projected an annual GDP growth rate of 2.6 percent for 2013. In April the Commerce Department forecasted a growth rate of more than 1.8 percent for the year’s first quarter, only to be revised to a lower 1.1 percent. In July 2013, it announced that the U.S. economy for the second quarter had grown at an annualized pace of 1.7 percent. It surprised most economists since, according to an earlier poll by Reuters, the government had forecast the economy was growing at a 1.0 percent pace. It was largely based on the impact of federal spending cuts. The reaction of some pundits was that the recovery of the economy was taking root. Peter Cardillo, chief market economist of Rockwell Global Capital, remarked, “This is a pleasant surprise and obviously the economic activity in Q2 subject to revision is still a surprise.” According to the BBC News, “The latest figures showed a pickup in both imports and exports. Exports rose 5.4 percent in the second quarter, compared with a drop of 1.3 percent in the first quarter, imports jumped 9.5 percent, compared with an increase of 0.6 percent in the previous quarter.” The Economist for July 27–August 2, 2013, projected GDP growth rate for 2013 of 1.9 percent.[24]

The 2014 and beyond GDP growth forecasts made in 2013 were cautiously optimistic. Earlier in 2013, the GDP growth for the fourth quarter had been projected to be 3.6 percent. In February 2014, the Commerce Department revised its GDP growth rate from an initial estimate of 3.2 percent to a downward estimate of 2.5 percent. All this time the corporate media was reporting on the economy’s recovery, citing 2013’s fourth-quarter 3.6 percent GDP growth. Most mainstream sources predicted GDP growth for 2014 to be between a low of 2.

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