On November 22, the U.S. Department of Commerce, Bureau of Economic Analysis (BEA) released another revised Real GDP report. It says the second revision of GDP for the third quarter 2011 was a stagnant 2%.
Gross Domestic Product is the “the output of goods and services produced by labor and property located in the United States”. Real GDP means it’s been adjusted for inflation, specifically: “‘Real’ estimates are in chained (2005) dollars.”
The BEA report has some other important information, that the mainstream media rarely reports.
Inflation: Overall prices increased 1.9% in the third quarter, and 3.3% in the second quarter.
Expenses: Overall consumption expenditures increased 2.3% in the third quarter, 0.7% in the second quarter.
Property Investment: Non-residential property investment increased 14.8% in the third quarter, 10.3% in the second quarter. Residential property investment increased 1.6% in the third quarter, 4.2% in the second quarter.
Exports: Products made in the U.S. and shipped to other countries increased 4.3% in the third quarter, 3.6% in the second.
Imports: Products brought into the U.S. increased 0.5% in the third quarter, 1.4% in the second quarter.
Government: Federal spending on the military increased 4.7% in the third quarter, 7.0% in the second. Federal spending on non-military decreased 3.8% in the third quarter, decreasing 7.6% in the second. State and local spending decreased 1.4% in the third quarter, decreasing 2.8% in the second.
Production: Real Gross National Product increased 2.1% in the third quarter, and 2.2% in the second.
Value of Products Produced: Market value increased 4.6% in the third quarter, 4.0% in the second quarter.
Income: Real Gross Domestic Income increased 0.4% in the third quarter, and 0.2% in the second.
To be significant the amount of change should be 3% or greater. Between 0% and 3% should be considered stagnation, below 0% is retraction.
Notice the huge jumps in property investment.
Notice that U.S. exports are above 3%. This corresponds to the increase in production. The value of products produced are more than 4%! Yet look at the income of U.S. workers, a 0.4% pittance! Some reward for making more products and providing more service!
The BEA’s data on production and income shows you that Corporate America views labor as slave wage workers. After all it’s obviously not the workers who’re benefiting from the increased production, and the increased value of their products and services!
What about government spending of your tax dollars? The BEA report shows what many are dealing with, a drop in State and local government spending (social services and education are the big ones), and a huge drop (more than 7% in the 2nd quarter, more than 3% in the 3rd) in Federal non-military spending (again, social programs, education, etc). But look at the huge jump in military spending, it almost matches the cuts in non-military spending!
The BEA’s data on government spending is a real indicator of who the government really cares about!