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M'aidez. "Help me." May Day. (One point.)
So with the latest economic growth numbers out yesterday (http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm)*, we see that we are not technically in a recession at the moment. A recession is a contraction of the GDP that lasts two quarters or longer, and the numbers that came out yesterday showed growth over Q1 '08. Really anemic growth, but growth nonetheless.
Except that with energy (read: gasoline and heating oil) price inflation of 17% over the past year (http://www.bls.gov/news.release/cpi.nr0.htm)**, I have to wonder how much of that "real" 0.6-annualized-growth-rate is eaten by the fact that the *nominal* increase in fuel expenditures is offset by the *actual* resultant decrease in residual income and expenditures.
Real personal consumption expenditures increased 1.0 percent in the first quarter, compared with
an increase of 2.3 percent in the fourth. Durable goods decreased 6.1 percent, in contrast to an increase
of 2.0 percent. Nondurable goods decreased 1.3 percent, in contrast to an increase of 1.2 percent.
Services increased 3.4 percent, compared with an increase of 2.8 percent. (emphasis mine)
I am explaining this poorly. What I think is that we are spending less, in real terms, on everything in the world *except* that which we pour into a tank and then burn. In other words, thanks to differential inflation, we have all the reality of a recession except for the technical criterion.
I heard on the radio this morning that food banks around the country are getting hit from both directions by the current economic reality--on the one hand, because food is more expensive, more people need the help of the food bank. On the other hand, because food is more expensive, food banks are finding it harder to keep their normal stock of food on hand, let alone ramp up to meet the increased need.
So on this day of helping people--you see what I did there--if you can afford it, your local food bank could probably use an extra donation.
*Included for completeness. Do not click, boring.
**Likewise.
So with the latest economic growth numbers out yesterday (http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm)*, we see that we are not technically in a recession at the moment. A recession is a contraction of the GDP that lasts two quarters or longer, and the numbers that came out yesterday showed growth over Q1 '08. Really anemic growth, but growth nonetheless.
Except that with energy (read: gasoline and heating oil) price inflation of 17% over the past year (http://www.bls.gov/news.release/cpi.nr0.htm)**, I have to wonder how much of that "real" 0.6-annualized-growth-rate is eaten by the fact that the *nominal* increase in fuel expenditures is offset by the *actual* resultant decrease in residual income and expenditures.
Real personal consumption expenditures increased 1.0 percent in the first quarter, compared with
an increase of 2.3 percent in the fourth. Durable goods decreased 6.1 percent, in contrast to an increase
of 2.0 percent. Nondurable goods decreased 1.3 percent, in contrast to an increase of 1.2 percent.
Services increased 3.4 percent, compared with an increase of 2.8 percent. (emphasis mine)
I am explaining this poorly. What I think is that we are spending less, in real terms, on everything in the world *except* that which we pour into a tank and then burn. In other words, thanks to differential inflation, we have all the reality of a recession except for the technical criterion.
I heard on the radio this morning that food banks around the country are getting hit from both directions by the current economic reality--on the one hand, because food is more expensive, more people need the help of the food bank. On the other hand, because food is more expensive, food banks are finding it harder to keep their normal stock of food on hand, let alone ramp up to meet the increased need.
So on this day of helping people--you see what I did there--if you can afford it, your local food bank could probably use an extra donation.
*Included for completeness. Do not click, boring.
**Likewise.