Welcome to Obama America:70% Of The Q3 GDP Growth Was Cash For Clunkers (Government will give you everything)
0% Of The Q3 GDP Growth Was Cash For Clunkers Vincent Fernando
Dec. 22, 2009, 10:05 AM
Today’s downward revision is far worse than it first appears. While third quarter GDP was revised down by a 0.6% (2.2% vs. 2.8% previously), the contribution from motor vehicle output (which was massively stimulated by Cash for Clunkers in a one-off fashion) remains enormous.
BEA GDP Release: Motor vehicle output added 1.45 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change.
What this means is that Cash for Clunkers was an even larger factor than previously understood. As it stands, by a basic calculation without motor vehicle output, third quarter GDP would have been only 0.75%. That’s barely growing.
Now obviously there might have been some degree of GDP contribution from motor vehicle output even if Cash for Clunkers hadn’t happened. Yet it would have been far less than 1.45%, look at Q2’s contribution noted above, it was only 0.2%.
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(Excerpt) Read more at businessinsider.com …
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