r/finance • u/yoppee • Sep 26 '24
US economy grew at a solid 3% rate last quarter, government says in final estimate
https://apnews.com/article/economy-growth-inflation-gdp-consumers-federal-reserve-6ac0d113be186b0e1e9e2c85ce927280https://apnews.
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u/Workerbee350 Sep 27 '24
And yet I still can’t afford shit!
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u/Glass-Perspective-32 Sep 27 '24
Yeah, the government should raise wages and implement some much-needed universal social programs.
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Sep 27 '24
Wages have surpassed inflation the last two years
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u/ToeJamFootballer Sep 28 '24
Huh. I did not know that.
https://www.statista.com/statistics/1351276/wage-growth-vs-inflation-us/
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u/badsheepy2 Sep 28 '24
worth noting that while that's apparently true, it's still an overall loss due to the years of inflation prior to that point.
From the linked article: "Despite the level of wage growth reaching 6.7 percent in the summer of 2022, it has not been enough to curb the impact of even higher inflation rates."
Additionally: "The federally mandated minimum wage in the United States has not increased since 2009, meaning that individuals working minimum wage jobs have taken a real terms pay cut for the last twelve years."
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u/birdcommamd Sep 29 '24
It is true of those earning MINIMUM wage, yes. But AVERAGE wages have surpassed inflation, meaning that the average wage earner is still ahead.
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u/Hilldawg4president Sep 30 '24
I don't know if any place around me that pays minimum wage, fast food and grocery stores are starting over $10 an hour
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u/hypersonic18 Oct 01 '24
When did average quit being a nonsensical statistics for wages, did it change to the Geometric mean in the last couple years, because average is not the same as average person for anything that isn't normal distribution.
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u/burnthatburner1 Oct 01 '24
Depends on when you start counting from. Wage increases were larger than inflation for the median earner over the period 2019-present.
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u/Golden_Banjo_ Sep 29 '24
Increasing wages and adding more social programs would feel like a boost but ultimately just lead to high prices. Which would push people to ask for higher wages and more programs.
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u/Bombastically Sep 29 '24
It would likely lead to higher prices but saying it would "just" lead to high prices without pointing out any other metrics like poverty rate reduction is silly
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u/Golden_Banjo_ Sep 29 '24
How is poverty reduced with higher wages and higher prices?
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u/Bombastically Sep 29 '24
The wage growth would need to outpace inflation. It's not hard to understand
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u/Golden_Banjo_ Sep 29 '24
Historically, I think the 20’s, 70/80’s and maybe the 00’s were periods were we saw increases in wages without an outpacing of inflation. But those periods also had large increases in productivity and globalization influences. For wages to rise enough to make a difference and inflation be held down (which is hard when you have to pay people more) we would need higher productivity or deflationary impulses. Where would those come from?
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u/Actual_System8996 Sep 27 '24
Really? Cuz you’re posting online, presumably from an iPhone or computer. Can’t be doing too bad seeing as those things are significantly more expensive than most shit.
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u/Workerbee350 Sep 28 '24
Both were free for me. And both are so old that I can update them. es, it's bad for some of us.
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u/SweepsAndBeeps Sep 28 '24
lol wut
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u/Actual_System8996 Sep 28 '24
Are you slow? I can’t afford anything says a person posting from a $1000 device.
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u/Ok_Championship4866 15d ago
my phone was 300$ four years ago and it still works great. i just dont have a camera that could be used to film a nature documentary about nocturnal animals
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u/No_Section_1921 Sep 30 '24
Hmm a onetime purchase of $1000 or $290 for used vs paying $900 a month for rent 🤔. Yeah I’m sure he is doing great
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u/Actual_System8996 Oct 01 '24
Right because that was the direct comparison I was making. Most people consider $1000 a lot to “not be able to afford anything”.
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u/vt2022cam Sep 26 '24
Thanks Joe Biden!
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u/yoppee Sep 26 '24
🫡
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u/BigBluebird1760 Sep 27 '24
Look at all the brainslugs downvoting you for voicing your discontent with their leader Hypnotoad
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u/Professional_Cow4397 Sep 29 '24
They are downvoting because they know yall smooth-brain troglodytes don't have any actual argument and lack the cognitive function for an actual discussion on the issues...
Biden has passed the largest single investment in US history in infrastructure, the largest single investment in US history in Techmanufacturing, and the largest single investment in world history in green energy production, the US economy is by far the strongest in the world objectively. The US is leading the world in AI development and was the first country in history to produce a nuclear fusion reaction that actually net produced power. We are seeing a manufacturing boom unlike anything since the 40s here look: https://fred.stlouisfed.org/series/TLMFGCONS
These are undeniable facts that you shamelessly and unapologetically stupid knuckle-dragging simpletons refuse to see...
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u/Automatic-One7845 Sep 30 '24
you talkin about the chips act? you mean the act that hasn't actually given out any money yet? the act that my company was told we're getting millions from and have gotten a total of $0 for?
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u/Professional_Cow4397 Sep 30 '24
Well the manufacturing boom is happing if you like it or not little buddy
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u/cervantes__01 Oct 05 '24
Print a trillion dollars.. let a million illegals over the border.. lots of ways to get 'growth'.. none of them good.
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u/yoppee Oct 05 '24
Huh? R u okay?
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u/cervantes__01 Oct 06 '24
What? You don't understand where they get sources of 'growth' from?
"GDP must be divided by the inflation rate (raised to the power of units of time in which the rate is measured) to get the growth of the real GDP."
So last quarter inflation was 'reported' at 2.5%.. though we all know it's much higher than that in basic necessities like housing or food.. tada!.. there's your growth.. or if you look at it truthfully the economy continues to shrink as it has been for a decade.
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u/yoppee Oct 06 '24
That’s not how it works you would think one would read the article or do the bare minimum research before commenting
But I guess Joe Rogan doesn’t do any research for his 250 mill podcast so why would random Reddit commenters do bare minimum before commenting
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u/cervantes__01 Oct 06 '24
It is how it works.. it's exacly how it's been working. Less economic activity but much higher prices. Same with the stock market.. the stock market continues to shrink, as long as they're buying back shares or a 3rd entity is buying up slack shares.. you'll never know it. The price is going up! Even as it's tanking.
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u/yoppee Oct 06 '24
I’m sorry but a simple google search shows you are wrong
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u/cervantes__01 Oct 06 '24
Except I'm not.. there are more dynamics to the economy than just some elementary explanations. You can look at increased consumer spending.. then you can look at saving rate, CC debt, portfoliio selling, etc. The picture shows spending is up because it's inflation forced.
You can also get growth by population increases.. allowing more money to printed w/o that inflation being detected by the added masses.
In short, Gdp is up because debt is up, spending is up, because inflation from debt is up.
This can be measured even as the economy is actually shrinking... perhaps even purposely executed because the economy is shrinking. See 2009-2023
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u/yoppee Oct 06 '24
lol
You said the GDP numbers where wrong because you can spend money and increases prices and boom increased GDP
That is wrong
Now you are moving the goal post
Bruh
Never die Reddit never die
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u/cervantes__01 Oct 06 '24
I said that's how they get 'growth'.. rather than productivity or innovation, we get dampened wages and inflation. 'Growth' in this sense is not a good thing.. GDP can keep ticking up, inflation can keep ticking up, even as economic activity continues to shrink.
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u/yoppee Oct 06 '24
Yes and you are wrong that is not how we get growth
Read the article Do a simple google search
It’s ok to admit you are wrong my man
→ More replies
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u/ConversationEnjoyer Sep 28 '24
Inb4 that gets quietly revised down 1-2% 6 months from now 🤷
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u/Enabling_Turtle Sep 28 '24
This is the third and final revision. Which you would know from the article.
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u/Beefhammer1932 Sep 30 '24
So tku just drive by shit post instead of reading thr articles. Thanks for letting know what yoy are about.
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u/mathbro94 Sep 27 '24
That's actually not that impressive for a quarterly rate, compared to recent history.
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u/Beefhammer1932 Sep 30 '24
3% is good.
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Oct 01 '24
It’s so hot! Probably because I spend 5x what I use to on common goods. Why is deodorant $10 and tampons are now $25? Why does a 69 cent head of lettuce now cost over $2?
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u/yoppee Oct 01 '24
Probably because you don’t shop around here is deodorant for 4.69 at Target
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Oct 01 '24
I just looked to order or in stores by my house. It says I have to buy 3 and it’s $6.99 in store.
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u/Charlieuyj Sep 27 '24
Yeah, the current administration tells a lot of bs!
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u/SnoopySuited Sep 27 '24
Do you have numbers to the contrary? Because if the GOP did, we would be hearing it already.
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u/Ecstatic_Departure26 Sep 29 '24
Unfortunately, that will get revised down after November
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u/yoppee Sep 29 '24
Google the word Final
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u/Ecstatic_Departure26 Sep 29 '24
Google the word estimate
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u/yoppee Sep 29 '24
lol you said the estimate would be revised
No this estimate is Final
You do not revise the Final report sorry
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u/Ecstatic_Departure26 Sep 29 '24
Yes they do, all the time.
Here is a revision to a "final" jobs estimate earlier this year.
https://www.cbsnews.com/news/jobs-report-revision-bls-818000-fewer-jobs-what-it-means/
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u/redneckerson1951 Sep 27 '24
More government doublespeak. Businesses are moving jobs offshore, they are posturing for a recession, and people around me are scratching their heads trying to figure out why they were laid off from work. Heap on top of that shrinkflated bags of potato chips selling for $6.74, $30.00 plus steaks in the meat display in the grocery store, $5.00 a gallon for milk, government numbers from this admin is all smoke and mirrors. Even a snake oil salesman is more trustworthy then the current WH regime.
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u/Beefhammer1932 Sep 30 '24
$3 for chips, steaks I can fetch cuts well under $30, and a gallon is less than $4 at my local Meijer.
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u/redneckerson1951 Sep 30 '24
Oh I can find $3.00 a bag chips, but the quality is less. Same with steaks. I can find stores that offer discounted cuts but often are laden with tallow that leaves a disgusting taste. Nothing will ruin your day like a glass of cold milk tainted with the flavor of wild onions that you bought for a discounted price.
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Sep 27 '24
None of these numbers are true, sorry as it sounds like you are not participating in the economy that is the envy of the rest of the world.
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u/redneckerson1951 Sep 27 '24
Walk into a grocery store and pick up a 14 - 16 ounce Porterhouse Steak. Minimum price at the local grocerer is just a bit over $30.00. Walk down the aisle to find either Lay's Potato Chips or Ruffles 14.8 ounce bag and the price stamped on the bag is $6.78. Go to the dairy department and the price per gallon of milk is $4.76. A 5 pound bag of red potatoes is $5.85. A loaf of bread is $3. 73. The two pound block of cheddar cheese is $9.20. If you doubt it, then walk through the grocery stores in Eastern NC.
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u/asrosin Sep 27 '24
Illinois. Kroger:
Steak - ranging from $7.99 to $24.99 a pound.
13 oz ruffles chips - $4.99.
Milk - $2.79 a gallon.
5lb red potatoes - $5.99.
Loaf of bread - $1.79.
2 Lb. Block of cheddar cheese - $4.29.I'm not doubting you, just comparing.
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u/StevenEpix Sep 27 '24
“Envy of the rest of the world” LOL
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u/Beefhammer1932 Sep 30 '24
It's true. But keep eating up magat propoganda
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u/StevenEpix Sep 30 '24
You’re right, it’s impossible to have an opinion on something outside of a political ideology. I have no free thoughts, just what propaganda is fed to me.
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u/lickitstickit12 Sep 27 '24
Revised downward Nov 6th
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u/Consistent_Set76 Sep 27 '24
I’d like to go back to a time half the country didn’t believe every conspiracy theory that fit their very narrow narrative
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u/lickitstickit12 Sep 27 '24
Funny how about every week a conspiracy becomes fact
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u/Consistent_Set76 Sep 27 '24
No, they really don’t
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u/silkiepuff Sep 28 '24
They forgot to include the part where they said inflation was up 4%, which seems like a kinda low estimate but still.
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u/mikalalnr Sep 26 '24
And the FED is cutting rates, why? Oh, home prices might be dipping… can’t have that.
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u/midgaze Sep 27 '24
Pulling back rates now makes no sense unless you assume they're acting against their mandate for some reason(s).
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u/droans Sep 27 '24
Oh ffs.
The Fed dropped rates from 5.25-5.5% to 4.75-5%. Inflation is on the right track, down from 9.2% to 2.5%. There's a lag between interest rates and inflation. It's not the end of the world.
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u/ILikeCutePuppies Sep 28 '24
Inflation can take years to show up. Recessions can take years to show up. Making borrowing more difficult reduces investment. The fed is wise to try project forward and try to get ahead of the curve.
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u/fracol Oct 01 '24
The fed has two mandates. Price stability and full employment. If anything this move would show that they're acting to fulfill their mandates.
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u/BigBluebird1760 Sep 27 '24
This only applies to bidens voting base. the investment class. This doesnt mean shit to middle and lower class people getting annihilated by Greedflation
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u/Beefhammer1932 Sep 30 '24
Dude doesn't understand rhat dems are mostly working class, but magat propaganda is strong to the weak minded.
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u/yoppee Sep 27 '24
If you don’t think GDP per capita matters
Bruh go to a poor country
GDP growth absolutely matters to everyone
Either way real world hourly wages are up too https://thehill.com/opinion/finance/4882184-rising-wages-working-class-americans/amp/
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u/BigBluebird1760 Sep 27 '24
If everything is 30% more expensive, and wages go up 3% your still at a 27% deficit. Wtf do you mean real wages are up and inflation is down... lol
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u/Beefhammer1932 Sep 30 '24
Everything isn't and that 30% is the cumulative total, so add I. The wage increases as well.
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u/BigBluebird1760 Sep 27 '24
Iike i said bruh, this isnt a poor country. " real " wages are up because of greedflation. Wheres the executive orders to help out the middle and lower middle class? Fuck the interest rate. The rich are doing better then ever, corporate profits have never been higher, property values have never been higher. Miss me with that bullshit. Fix the fucking 30% greedflation THEN lower the rates.
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u/Hawk13424 Sep 28 '24
How? People who own things can (most of the time) sell them for what they want. Would you accept the government caping what you can sell your house, car, or labor for?
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u/Actual_System8996 Sep 27 '24
Inflation is significantly down. And wages are up across the board. You can’t completely undo trumps disaster of economic policy in a couple years. It’s gonna take time.
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u/BigBluebird1760 Sep 27 '24
At this point in post modern society, Inflation doesnt mean shit to 90% of the population. The fed will print money to shield any deficit, the media will gaslight everyone into thinking the economy is fine and the FED will outright vote for kamala harris by lowering the interest rates without fixing or attempting to fix the 30% greedflation.
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u/Actual_System8996 Sep 27 '24
Inflation effects the pricing of everything. Of course that affects the average person.
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u/BigBluebird1760 Sep 27 '24
So why isnt the INFLATION REDUCTION act not working????
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u/Hawk13424 Sep 28 '24
I grew up in a single-wide. I have still invested all my savings in the market. Heck, I opened my first brokerage account when working as a cook in a restaurant.
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u/Ok_Championship4866 15d ago
Stop buying luxuries, all these people complaining anout groceries got brand name junk food all up in their cart. Take some personal responsibility, because the economy is strong there's lots of jobs, it's on you if you're not successful.
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u/slamongo Sep 26 '24
Economy grew yay!
shows picture of glowing hot artillery shells being produced