Input | Output |
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Link | YouTube |
Published | 2022/10/26 |
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Status | article incomplete |
Beau says:
Economists expect an expanding economy, fueled by steady consumer spending, but concerns about recession linger due to interest rate increases.
Economic Analysts
The full transcript provides a detailed analysis of the current economic situation, discussing the implications of GDP expansion and the role of consumer spending and interest rates.
Well, howdy there, Internet people. It's Beau again.
So today we are going to talk about an expectation that has risen of a surprise economic indication.
Right now, there are a lot of economists who are suggesting that when the GDP numbers come out,
they will show an expanding economy.
There's quite a few projections that are showing it somewhere between 2 and 3 percent.
These numbers will come out this week.
So what does that mean?
You know, we hear recession, recession, recession.
If the GDP is expanding, it's not really a recession.
And why is this happening?
Right? And the answer is mainly us.
Despite all of our complaints about prices and inflation, we haven't stopped spending.
Consumer spending and retail spending is steady.
It's on the rise. That means an expanding economy.
There's also the fact that you have a strong job market and low unemployment.
These things together create an expanding economy.
Now, this news hitting right before the election,
you can expect the Democratic Party to jump on this,
just the way the Republican Party did when a couple of quarters back it contracted.
And they've been on this kick ever since then.
If it starts to expand now, you can expect the Democratic Party to be championing these numbers
and just plastering them everywhere.
Now, here's the catch.
Sure, politically, this is a huge win, right?
For the Democratic Party, they're going to be super excited about this.
But for everybody else right now, does this mean that the concerns about a recession are over?
And the answer to that is no, not really.
A lot of this also has to do with the Fed raising interest rates.
Now, with the Fed raising interest rates, there is a chance, pretty good chance,
that companies won't be borrowing as much, meaning they won't be spending as much either,
which could cause a shrink in the economy later on.
Odds are early spring.
The holiday season will probably carry the economy through for a bit.
But this doesn't mean that the concerns about a possible recession are over.
It just means that, surprisingly, it appears that the just wild interest rate increases
are kind of working for the moment.
There's a risk later, but at the moment, they seem to be working
when combined with the other factors going on in the economy.
So be ready for that news and be ready for the Democratic Party to be jumping up and down
and cheering about the fact that the GDP is expanding,
because that is a sign of a healthy economy.
And with the Republican Party trying to put all of its weight into that messaging,
for that to be blown out of the water right before the election,
the Democratic Party should, at least in theory, be constantly, constantly talking about it.
Anyway, it's just a thought.
Y'all have a good day.
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