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Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by partiallypro on Thursday July 28, 2022 @11:48AM (#32265965)
I personally think we're in recession and the reason is datapoints outside of this GDP print, what companies are saying, and the fact I know people that have been laid off already. What I find pathetic is that saying we are in a recession is now a political stance.

I think we all know that if a Republican were President the entire narrative would shift, with most of the press saying we're in recession while Fox, etc would say unemployment is still low which is what matters.

How did we get to a point where actual data can be outright denied or absorbed based on your political viewpoint? It's really pathetic. People will go to the ends of the earth just to protect politicians. Worse, even if we're in recession it's pretty mild, so I don't even know why there is so much handwringing about it.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mywittyname on Thursday July 28, 2022 @11:58AM (#32266109)
I agree that we are in a recession.

>How did we get to a point where actual data can be outright denied or absorbed based on your political viewpoint?

Because the actual data is sending mixed signals. People equate recessions with job losses, but job growth is still high and unemployment remains incredibly low. Businesses equate recessions with reduced demand for goods and and services, yet demand remains strong enough to push prices and profits to record levels.

GDP has long been criticized for being a poor metric for the economy. But it's always been correlated enough with overall economic sentiment that it was Good Enough. It looks like we've finally gotten ourselves into a situation where the edge case issues with GDP surface.

Lastly, not everyone feels recessions the same. I was one of those people who benefited from the financial crisis, because I kept my job and lived in an apartment, so my income was going up while my costs went down. That doesn't take away from the devastation it caused to other people.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by phpisthebest on Thursday July 28, 2022 @12:19PM (#32266436)
They are not mixed signals, the data we use for signaling is flawed for the modern area

Take for example the U-3 unemployment number that you cite, what is missing from that is Workforce Participation, we have a pretty large drop-off in Work force participation which is leading to the false belief that employment is "fine", and the quote "mix signal" of being in a recession while still having lower unemployment.

Completely absent from most of these older metrics is the "gig-economy" which is really screwing with the data IMO.

Then you have U-6 Unemployment increasing while U-3 is dropping, I think U-3 is just a few months away from reversal and will start increasing soon

>>GDP has long been criticized for being a poor metric for the economy.

yes by MMT supporters that want to ignore the classic model of economics in favor of monetary manipulation for political purposes

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @01:06PM (#32267180)
>>>GDP has long been criticized for being a poor metric for the economy. But it's always been correlated enough with overall economic sentiment that it was Good Enough.

>> yes by MMT supporters that want to ignore the classic model of economics in favor of monetary manipulation for political purposes

Huh?

Discussing the utility of and then issues with GDP has been a staple of Macro courses for decades. E.g., [1], but I'm really serious: every single macro textbook for as long as macro textbooks have existed has had some version of the question "Discuss the strengths and weaknesses (i.e., problems) of using GDP data".

[1] https://www.austincc.edu/sondg/Exams/macro/exam2.html

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by hedora on Thursday July 28, 2022 @12:38PM (#32266718)
A reasonable definition of recession is "you can't find a job", but, not only are we in the middle of a labor shortage, traditional good-economic-times like unionization are ramping up, and people are successfully demanding raises (and some households are voluntarily moving to single incomes).

On the other hand, the stock market is down this year, so if that's your definition, things are dire.

Honestly, this seems like stagflation to me, which has been historically known for breaking the definition of "recession".

Neither side wants to say that out loud, because it implies a decade-plus economic funk.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by pclmulqdq on Thursday July 28, 2022 @02:53PM (#32268658)
That is actually a really poor definition of a recession. It overlooks many macroeconomic factors that can cause severe problems. "I can't improve my economic position" seems a lot closer, while still being a bad definition, and by that definition, we are deep in a recession.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mdcds on Thursday July 28, 2022 @03:32PM (#32269127)
> "you can't find a job"

that sounds like a depression, not a recession

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by conradev on Thursday July 28, 2022 @01:13PM (#32267313)
MMT isn't against using GDP as a metric for the economy

The biggest actual policy disagreement between MMT and mainstream economics is how to achieve full employment. Mainstream economics primarily reaches for monetary policy (tweaking the interest rate), MMT primarily reaches for fiscal policy (create/spend money to give everyone a job).

I don't feel particularly strongly about one side versus the other, but we end up doing both anyways and our current model of changing the interest rate (i.e. recent rate hikes) out of lockstep with corresponding fiscal spending (i.e. Build Back Better) is inefficient when the two need to be kept in balance.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by dragonwriter on Thursday July 28, 2022 @03:27PM (#32269067)
> we have a pretty large drop-off in Work force participation

No, we don't.

While the LFPR is still down from the point it was prior to the 2020 recession, it has been continuing to increase fairly consistently after it's sharp rebound from the trough of that recession.

https://www.bls.gov/charts/employment-situation/civilian-lab...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mywittyname on Thursday July 28, 2022 @02:37PM (#32268469)
> what is missing from that is Workforce Participation,

Sure, but the statement I made was job growth ways high AND unemployment remained low. The AND is important for the very reason you point out; U-3 is not a useful stand alone metric. Combining it with job growth data helps provide a better picture of the job market.

Employment still grew by 375,000 jobs last month. This was far above expectations.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rrrrrrrrrrrryan on Thursday July 28, 2022 @05:24PM (#32270302)
>>GDP has long been criticized for being a poor metric for the economy.

> yes by MMT supporters that want to ignore the classic model of economics in favor of monetary manipulation for political purposes

It's been said that a cancer patient going through an expensive divorce is the best contributor to GDP.

You don't measure the health of a human by looking at their weight on a scale. When you go to the doctor for your annual checkup, they'll measure your BMI, blood pressure, body temperature, resting heart rate, and look at a few other indicators to get a very rough estimate of your overall health and how it compares to last year.

GDP is one indicator among many to measure the health of the economy. An important one, yes, but looking at GDP without also looking at employment figures, inflation data, the markets, etc. would be tremendously silly.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by seanmcdirmid on Thursday July 28, 2022 @12:47PM (#32266870)
> Take for example the U-3 unemployment number that you cite, what is missing from that is Workforce Participation, we have a pretty large drop-off in Work force participation which is leading to the false belief that employment is "fine", and the quote "mix signal" of being in a recession while still having lower unemployment.

Everyone is still very desparate for employees, so I don't think Workforce Participation is low because there aren't enough jobs and people are discouraged from the work force. Baby boomers are currently aging out of the job market at a n accelerated rate, so that must be one of the reasons (U-6 doesn't include that though). I think the current drug disaster is another (a lot of people are simply unemployable), but I'm not sure how to measure that.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by Red_Leaves_Flyy on Thursday July 28, 2022 @09:20PM (#32272039)
A decent measure is the number of unique individuals with a negative background check showing: violent, financial, or drug charges. The best metric I know of that approximates this is linked below; and it’s woefully undercounting.

https://en.m.wikipedia.org/wiki/Felony_disenfranchisement_in...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by kube-system on Thursday July 28, 2022 @12:35PM (#32266671)
Of course we have a large drop off of workforce participation. Baby Boomers are retiring en masse; they’re reaching retirement age, and many of those who are close were offered buyouts to leave early.

It’s not the result of decreased hiring due to economic slowdown. It’s the opposite entirely; this is a contributing factor to the labor shortage.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by njcgbc on Thursday July 28, 2022 @12:16PM (#32266392)
> Businesses equate recessions with reduced demand for goods and and services, yet demand remains strong

This isn't true, major retailers have been reporting falling demand.

I'd cite the WSJ but for some reason I can't paste the link in this box, just Google "falling demand Wal-Mart"

> enough to push prices and profits to record levels.

Adjust both for inflation

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by bushbaba on Thursday July 28, 2022 @12:30PM (#32266597)
Falling demand of non-necessities. People aren't buying "TVs". Which as you call out, is a stupidly strong recessionary signal.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @12:33PM (#32266640)
Or, damn near every household bought a new TV during the pandemic lockdowns using their stimulus checks and now no one needs a new TV.

I think Walmart's story in particular is one of stupidly bad demand forecasting.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by njcgbc on Thursday July 28, 2022 @01:02PM (#32267098)
Fast food is reporting the same thing, McDonald's put out a report a few days ago, Yum! Brands is yet to report results for the quarter but similar results are expected. Target had a similar report to Walmart.

It is mostly discretionary spending that is down; Wal-Mart reported the largest fall in apparel iirc, but demand is demand. One would expect discretionary spending to fall first, and hopefully it stops there.

Again I apologize for not providing a direct citation due to my dumb mobile browser but these are days-old news stories and it should be easy to confirm

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rustybelt on Thursday July 28, 2022 @01:58PM (#32267967)
I know I've cut back on fast food because both product and service quality have declined dramatically, likely due to staffing shortages. Long wait times, cold food, and incorrect orders have pushed me to the point of staying away. It's a weird time, and it's hard to untangle all these additional factors. That said, I'm sure higher prices are having an impact as well.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @02:29PM (#32268382)
Fast food is pricing itself out of the market. I think it's a great example of a sector that failed to innovate and is now incapable of providing a product worth buying at prices that are profitable.

McDonalds et al. probably should've been investing a lot more in automating their kitchens. The fact that a huge percent of locations -- and all drive-thrus -- still use humans for the ordering process is, similarly, inexcusable.

Unless the US massively increases its low-skilled immigration quotes, robotics firms will be the FAANG equivalents of the 2020s-2030s.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by whatshisface on Thursday July 28, 2022 @02:39PM (#32268487)
If McDonalds can't afford to pay a living wage at the local cost of living, nobody will immigrate to work for them.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @03:04PM (#32268791)
You can fit 3 generations in a single family home in an American suburb of a mid-sized city, and half the world's population would either (a) consider that a QoL improvement or at least (b) put up with it for a while to remit back home.

For all the doom and gloom in the USA, it's still an incredibly rich country.

To be clear: I'm not making a moral statement here. This is a statement of fact, not a statement of ethical preference.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by whatshisface on Thursday July 28, 2022 @03:16PM (#32268928)
Can three people working at McDonalds own a single family home in an American suburb?
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @03:59PM (#32269395)
Someone working low-paid hourly wage work can probably make $20K. A few siblings + their parents = 5 people = $100K. Stagger availability schedules so there's always someone home with the kids, and share vehicles.

Suburb of top-tier cities? No. Cheapest suburb of a midwestern city? Absolutely.

Again, not saying it's reasonable. Just that it's possible.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by whatshisface on Thursday July 28, 2022 @04:07PM (#32269477)
So you argument essentially is that economic conditions dictate that within a few decade, there will be no restaurants in major cities.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by shagie on Thursday July 28, 2022 @06:00PM (#32270590)
Commuting. It is possible to commute to the low wages places within major cities while living in less expensive areas. This may be difficult if public transportation makes that too expensive and a losing prospect.

Total household income. It is possible to accept a lower wage job if the rest of the family is making more. A spouse or older child can add to the family budget even if the primary breadwinner is making more.

Grants / subsidized housing of some sort. College students making a few extra dollars while living in the dorms where the major expenses are paid elsewhere.

Back to the older children and summer jobs. Getting a job to do something over the summer and get a bit of spending money of their own.

---

Yes, lower paying jobs within higher cost of living areas are going to be having trouble finding people to work there. This has been a thing for many years. Even in the before times, there were constantly places that had "help wanted" signs out and were paying minimum wage. The ones in higher cost areas of the city were more likely to close resulting in more expensive restraints that can be supported by the people who are living the higher cost of living.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @09:11PM (#32271977)
> economic conditions dictate that within a few decade, there will be no restaurants in major cities.

No. Restaurants will continue to exist. Sit down in particular. In cases where you are paying for an experience; the economics will get worse, but they will continue to exist.

Fast food restaurants will even continue to exist. But the latter only with substantial automation. This has already happened at the front of the house -- kiosks and apps are the "happy path" ordering interfaces at every McD's in a major city. I'm merely projecting that the most cost-sensitive segment of the food services industry will push that automation into the kitchen, the checkout line, and a lot of the administrative work that happens at branches.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by maxerickson on Thursday July 28, 2022 @08:21PM (#32271652)
Houses in towns big enough for a McDonald's are $100,000.

Not suburbs, just towns, but there will be services and a hospital and so on.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by roflyear on Thursday July 28, 2022 @03:55PM (#32269356)
Three families can....
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by kube-system on Thursday July 28, 2022 @12:50PM (#32266914)
Not across the board. Demand for consumer discretionary spending outside of the home is up. People are tired of sitting at home. They don’t want to buy a TV and binge Netflix. They did that for 2 years. They’re going out to eat, going on vacation. Trying to get on a flight.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by babypuncher on Thursday July 28, 2022 @01:34PM (#32267653)
But demand for services and "experiences" is way up.

I think it's unrealistic to expect retail goods to maintain the same highs they had during the pandemic. For a big chunk of the last two years, people couldn't go to concerts, bars and restaurants operated at limited capacity, vacation destinations had travel restrictions in place, etc. This lead people to take the discretionary income they would normally spend on those things and put it into retail goods that improve their lives stuck at home. TVs, game consoles, what have you. Now that restrictions are essentially nonexistent in the US, people are returning to those pre-COVID activities.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by pclmulqdq on Thursday July 28, 2022 @02:55PM (#32268674)
The evidence does not suggest that demand for services and experiences is up. Demand for durable goods spiked when COVID checks went out, then returned to parity with demand for services and non-durable goods. According to the fed, both of those have dropped over the last two years.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by cma on Thursday July 28, 2022 @12:38PM (#32266716)
But people bought more TVs than normal during the pandemic, so it may also be part 'satiation' signal.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @12:31PM (#32266617)
> This isn't true, major retailers have been reporting falling demand.

As OP said,

>> and services.

> Wal-Mart

WalMart's issue is that they have a massive inventory/demand mismatch. They already have the headwind of a shift from goods to services, and then on top of that they also massively mismanaged a shift in consumer preference within goods. I have a feeling that they are also feeling the squeeze from Amazon. Many households treat Prime as a fixed cost but the 20 minute drive out to Walmart is a real expense that can be substituted with Amazon purchases. Tonight's earnings will be interesting.

Compare to eg Visa [1].

I expect that the "last hoorah" spending of this summer will grind to a halt in the winter and by Q2 2023 we'll be able to see a massive decline in consumer spending during Q4 in particular.

But we aren't there yet, at least in aggregate, because consumers are spending like mad on services.

[1] https://www.reuters.com/business/finance/visa-quarterly-prof...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by p_j_w on Thursday July 28, 2022 @01:07PM (#32267198)
>I'd cite the WSJ but for some reason I can't paste the link in this box, just Google "falling demand Wal-Mart"

I'd rather not base my picture of the entire economy around a single retailer. What's going on with other retailers? Amazon, Best Buy, Target, etc? Have they more than picked up the slack that Wal Mart is seeing?

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @01:17PM (#32267391)
> I'd rather not base my picture of the entire economy around a single retailer

Or retailers in general. Retail spending is down because services spending is up -- people are going to the beach and buying plane tickets instead of buying TVs and patio furniture.

Regardless of whether we're in a recession, retailer numbers aren't a good indicator for the duration/depth/type. We spent all of 2020 hearing that demand was pulled forward. Well, it was pulled forward from somewhere, and now we are there.

> What's going on with other retailers?

Best Buy missed by a lot; sales down by over 10%; forecast was a 1% contraction.

Amazon tonight. Always complicated because of AWS, digital content, and now a substantial advertising business. If you want the retail details you have to go past the headline numbers.

Target in mid-August but expectations are similar.

My guess is that none of those companies will be hit has bad as Walmart because (1) Walmart was just particularly badly mismanaged, and (2) these other companies are just different in kind (particularly Amazon -- they could eg suffer retail losses while beating estimates on Advertising/Cloud)

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by p_j_w on Thursday July 28, 2022 @01:33PM (#32267641)
>Or retailers in general. Retail spending is down because services spending is up -- people are going to the beach and buying plane tickets instead of buying TVs and patio furniture.

>Regardless of whether we're in a recession, retailer numbers aren't a good indicator for the duration/depth/type. We spent all of 2020 hearing that demand was pulled forward. Well, it was pulled forward from somewhere, and now we are there.

All fair points.

>Best Buy missed by a lot; sales down by over 10%; forecast was a 1% contraction.

Ouch.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by b0mbadilh0le on Thursday July 28, 2022 @12:25PM (#32266531)
Macro Econ 101: Unemployment is a lagging indicator. Always has been. Always will be. It's why it was silly for them to keep touting it as a measure of the economy's health.

We could even enter a prolonged, severe recession with low unemployment. How? Labor force participation. If it is low enough, there aren't jobs to cut.

Your last point is very valid, and much is a matter of perspective.

As far as mixed data... the only data throwing a contrary signal is unemployment, previously discussed. Inflation, rising interest rates, low consumer confidence, home prices turning over (speculative market areas currently), supply chain issues, and loss of wealth effect (markets have lost approximately $30 trillion this year), are all VERY recessionary.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mistrial9 on Thursday July 28, 2022 @12:41PM (#32266783)
to support your statement that unemployment is a lagging indicator -- very random observation of rural Carolinas annual horse roundup and sale. They keep and publish records of a traditional county horse auction there, and the 2006-2010 years are listed. You can see a big change in the prices among these relatively unconnected people and their auction, but it is lagging by two years versus the massive credit crunch that put so many high-leverage city companies out of business.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by s1artibartfast on Thursday July 28, 2022 @02:58PM (#32268701)
>Because the actual data is sending mixed signals. People equate recessions with job losses, but job growth is still high and unemployment remains incredibly low.

The data isn't mixed, people are just making an incorrect association.

Working more or longer isn't a good thing in its own right. In fact, it is bad it you are working more for less purchasing power.

employment growth has historically been associated with increased purchasing power, but the current situation is a deviation from this norm.

Talking about employment growth ignoring this fact is a bit of a bait and switch playing on this incorrect association.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by anamax on Thursday July 28, 2022 @03:27PM (#32269062)
> Because the actual data is sending mixed signals. People equate recessions with job losses, but job growth is still high and unemployment remains incredibly low.

The definition of "recession" doesn't depend on what other things people think happen during a recession.

No one would be making this argument if it had happened while Trump was in office.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by dragonwriter on Thursday July 28, 2022 @05:22PM (#32270281)
> The definition of "recession" doesn't depend on what other things people think happen during a recession.

It absolutely does depend on the factors that NBER has always looked at to judge recessions, like employment.

> No one would be making this argument if it had happened while Trump was in office.

That's a nonfalsifiable statement that does nothing but show your own political bias.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by anamax on Thursday July 28, 2022 @07:50PM (#32271468)
> That's a nonfalsifiable statement that does nothing but show your own political bias.

It's political bias to notice that people behave politically?

Is it political bias to notice Republicans complain about the deficit when Democrats are in power or is it only political bias to notice that that Democrats complain about the deficit when Republicans are in power ?

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by knewter on Thursday July 28, 2022 @07:13PM (#32271178)
It's nonfalsifiable but not for the reason you think :)
[dead]
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by DIARRHEA_xd on Thursday July 28, 2022 @01:33PM (#32267644)
Hey please consider changing this comment to substantively add to the discussion. Empty snark, no matter how good it feels, really isn't HNs style and doesn't promote healthy discourse.

Yours truly, DIARRHEA_xd

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @11:59AM (#32266120)
Descriptions of economic conditions are obviously politicized. This was probably always true to an extent, but it really took off during the early Obama years.

That said... my wealth manager has been and still is waffling when I ask him if we are in a recession. It's NOT just political; I don't even know my wealth manager's politics and I have absolutely no doubt he puts fiduciary responsibilities first and makes fact-based assessments.

Unemployment is low and the trend is mostly flat. Housing is doing fine. Consumer balance sheets are strong. Are we entering a recession? I think so. But there are a lot of "but"s which really do impact how smart and impartial people are thinking about where and how to deploy capital.

When I ask my wealth manager "are we in a recession?", he basically says "We might be in a recession. We might not be in a recession. Either way, we should not invest as if this is a typical recession."

Which I think pretty much sums things up.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by camhart on Thursday July 28, 2022 @12:18PM (#32266423)
> Consumer balance sheets are strong.

Consumer debt is at record highs for overall debt, and household credit card debt is climbing towards record levels.

https://www.google.com/amp/s/www.cnbc.com/amp/2022/05/10/hou...

https://www.google.com/amp/s/www.cnbc.com/amp/2022/05/10/con...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tfehring on Thursday July 28, 2022 @12:37PM (#32266701)
The fastest-growing (and largest) category of that debt was mortgage debt, which is probably a positive economic indicator if anything, though note that that's based on Q1 data. Household debt servicing costs as a percent of disposable income are still lower than at any point between 1980 (the earliest data available) and the start of the pandemic. https://fred.stlouisfed.org/series/TDSP

Also keep in mind that those debt figures are in nominal USD. One positive effect of inflation is that it reduces the real cost of paying off debt.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mym1990 on Thursday July 28, 2022 @12:54PM (#32266978)
Is this a positive effect? I think it is for lower inflation rates, but above a certain threshold the borrowing can get out of hand, people will go and get more loans, which will drive prices higher. Eventually the bubble pops and people go underwater.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by kmeisthax on Thursday July 28, 2022 @01:29PM (#32267576)
Hey, remember back in 2009 or so when everyone was cheering that we were "out of" the Great Recession, but everyone not part of Wall Street was still bleeding? I feel like this might wind up being a reverse of that; and the reason for this is that most economic data are aggregates that are missing the whole picture.

GDP numbers are back up? Great - except that's just higher because the handful of companies that can really capitalize on 0% interest rates are doing so. Everyone else is still down from 2007.

Unemployment is falling? Great - except that those people are leaving the labor force or taking lower-wage jobs than they had before.

There's all sorts of ways that the headline numbers can hide the discontent of a large group of people under the rug. And likewise this can happen in the opposite direction. The economy as a whole can be screwed over in ways that happen to give small business owners or the working class more negotiating leverage or a greater share of the pie.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by dragonwriter on Thursday July 28, 2022 @04:39PM (#32269830)
> Hey, remember back in 2009 or so when everyone was cheering that we were "out of" the Great Recession, but everyone not part of Wall Street was still bleeding?

I also remember the whole expansion preceding the Great Recession, during which the bottom three quintiles all did worse, the second-to-top was basically flat, and most of the gains were in a narrow segment at the top of the top quintile.

“Recession“ vs “expansion“ (multidimensional as it is) is still not, and not intended to be, the same as any individual person’s, or even the median person’s, experience of the economy.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rockemsockem on Thursday July 28, 2022 @12:01PM (#32266161)
I've seen the word recession thrown around plenty in the press; who's avoiding saying it?

As pointed out by another commenter the NBER has never failed to declare a recession after two consecutive quarters of GDP reduction. This is a preliminary report, I would expect them to wait for the full report to actually declare it.

These things work a certain way. Whether that way is good or bad isn't relevant to this particular point, by expecting that way to change on a whim you're just being impatient.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by ConceitedCode on Thursday July 28, 2022 @01:39PM (#32267721)
> As pointed out by another commenter the NBER has never failed to declare a recession after two consecutive quarters of GDP reduction.

That isn't 100% accurate. There is 1 example from 1947 where we had two consecutive quarters of negative GDP, but positive jobs, positive industrial production and positive consumer spending and NBER doesn't consider it a recession.

2001 was the opposite. It was called a recession without consecutive 2 quarters of negative GDP growth. [1]

[1] https://en.wikipedia.org/wiki/Early_2000s_recession#/media/F...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by dragonwriter on Thursday July 28, 2022 @02:32PM (#32268411)
> 2001 was the opposite. It was called a recession without consecutive 2 quarters of negative GDP growth.

Also 2020, and that wasn't even two down quarters with a gap; the whole recession was 2 months long.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by seizethegdgap on Thursday July 28, 2022 @12:38PM (#32266711)
> who's avoiding saying it?

No one is avoiding saying the word "recession". The current Executive Branch and Federal Reserve are both avoiding saying we are in a recession.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by sangnoir on Thursday July 28, 2022 @11:04PM (#32272714)
Aren't recesssions - by necessity, always declared retrospectively? Or at least after they have already started, due to how they are measured.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tfehring on Thursday July 28, 2022 @12:20PM (#32266447)
Because for better or worse, while some other countries have purely formulaic recession criteria, the US doesn't. This can swing either way - the US never experienced two consecutive quarters of negative real GDP growth during the 2001 recession, for example. No one is denying that real GDP has shrunk for two consecutive quarters, they're just correctly pointing out that that's not how the US government defines a recession.

My impression is that layoffs have been mostly isolated to tech at this point. I do know a couple of recruiters (outside of tech) who've been laid off lately, so that could be the canary. But my impression is that all of the quantitative labor market indicators we have are still strong - likely stronger than we've ever seen in a recession.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by smsm42 on Thursday July 28, 2022 @02:44PM (#32268545)
That's why it is important to have some verifiable agreed upon definitions. "Two quarters of negative growth" is something that anybody can understand and validate. Too simplistic? OK, make it more complex formula, whatever - but make it a formula, and make it fixed, so people can be sure neither Rs nor Ds can game it (at least not easily).

Instead what we're getting is "holistic criteria" which means pundits can argue on TV for hours (which they probably love to) and everybody gets to keep their partisan views and there's no objective meaning to any terms anymore. No wonder people have low confidence in "experts" and grasp at whatever they find on the internet to find some clarity.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by 8note on Thursday July 28, 2022 @09:23PM (#32272061)
I'm not clear that "in a recession" is a particularly useful state to anyone.

Even with a complex formula, you're still dropping the useful details.

Even with a predictable complicated formula, you still have the question to debate: "does it matter?"

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by smsm42 on Friday July 29, 2022 @01:05AM (#32273348)
People like certainty more than uncertainty, even if it's a bad certainty. That's why the have all these classifiers. It's easier to handle two situations "we're in a recession, we're not in a recession" than track about 50 economic parameters that are interwoven in a thousand complex ways. If you are a professional economist, you probably need to do the latter, but if you are a regular person, you probably have neither time nor capability to do it.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by s1artibartfast on Thursday July 28, 2022 @01:13PM (#32267312)
I fundamentally don't understand how low unemployment is a counterclaim against economic recession.

This is like saying sure you can't buy as much bread, but at least you are working longer.

The fact that more people are working to produce less than before describes an economy in decline.

What am I missing here?

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by vharuck on Thursday July 28, 2022 @05:33PM (#32270361)
Low unemployment means there are plenty of jobs available. Those jobs are available because employers believe they can increase revenue by shelling out more money on headcount. So those employers believe there's still money to be made in the market.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by s1artibartfast on Thursday July 28, 2022 @08:17PM (#32271630)
That's an interesting take I'll have to give some more thought to. I don't think that it's clear that employers think the economy will grow in a way that yields more abundant and cheaper Goods. Maybe I'm Wrong and we'll see in GDP outpacing inflation from all of the new jobs. Maybe they just haven't had a chance to materialize in real GDP growth
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by 8note on Thursday July 28, 2022 @09:27PM (#32272102)
GDP is an averaging function, that doesn't show the underlying distribution.

Poor people can be doing better while rich people are doing worse. Since economic activity is mostly about how the ultrawealthy are doing, there's always a recession when they're doing badly

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by s1artibartfast on Friday July 29, 2022 @12:19AM (#32273095)
That's an interesting thought. Do you think poor people are helped more by the employment numbers than hurt by the inflation?
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by idontpost on Friday July 29, 2022 @01:08PM (#32279440)
Unemployment isn't low because more people are working. It's low because retiring Boomers shrank the labor force.

Fewer workers = less production.

Fewer people looking for work = low unemployment.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by RC_ITR on Thursday July 28, 2022 @01:26PM (#32267550)
> What I find pathetic is that saying we are in a recession is now a political stance.

This is such a weird information play. Recessions are defined after the fact by NBER. Always have. Always will be. There’s no set criteria.

Informally people cite the two quarters rule, but 2/5 past recessions (2000 and 2020) don’t follow that rule.

No one wants to communicate that nuance so we get mass confusion.

Sad to see that confusion even exists in HN.

What’s actually concerning to me is exactly that: every nuanced discussion in politics is now some gotcha where a reporter asks “yes or no” to a question that has a detailed answer.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by babypuncher on Thursday July 28, 2022 @01:43PM (#32267791)
I think most of the recession talk is trying to drum up fears of 2007-2009. If we are in a recession, it's a pretty mild one. But that won't stop people from pretending that the sky is falling in order to motivate voters.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by pclmulqdq on Thursday July 28, 2022 @02:59PM (#32268726)
Welcome to the average recession. They usually aren't that bad for people outside of a certain small sector that gets hit hard. This time it was the crypto bros.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by throwaway6734 on Thursday July 28, 2022 @12:36PM (#32266684)
The average american does not know the technical definition of what a recession is. They just know recessions are bad. Whether or not it's acknowledged we're officially in a recession can itself have negative economic impacts due to panic.

Also, Powell himself has been iffy about whether or not we're in a recession

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rvz on Thursday July 28, 2022 @12:30PM (#32266605)
> How did we get to a point where actual data can be outright denied or absorbed based on your political viewpoint? It's really pathetic. People will go to the ends of the earth just to protect politicians. Worse, even if we're in recession it's pretty mild, so I don't even know why there is so much handwringing about it.

That's because all politicians are liars and the media spin doctors will ensure that their lies gaslight the general public into believing them. The problem is, they can't deny the numbers and they know it, hence why they are beginning to change definitions.

Given the last administration brought the US into a recession 2 years ago with the same opposition, media and critics screaming at them, there is no more denying that this is a recession with these figures. The difference is, the current administration is trying to escape by changing definitions, which doesn't give much confidence in them and indicates that it may get even worse.

Now you see the same ones down-playing the inflation fears in November 2021 are trying to down play this recession very poorly with lots of damage control to save themselves and their careers. In reality we were no better off, and it looks like this is worse than the last administration.

And finally, the indicators for this with surging inflation was there since November 2021. Instead we have 'Stock market up 1% today on both this news and decades-high inflation.' [0] and later 'We are most certainly not in a recession.' [1]. Not only you have to look at it in the long term - not in 1 day, but you also don't wait for the figures to come out for you to then prepare for the worst. By then it is too late.

The denial is indeed pathetic.

[0] https://news.ycombinator.com/item?id=29508238

[1] https://news.ycombinator.com/item?id=31441710

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mym1990 on Thursday July 28, 2022 @12:38PM (#32266721)
Hasn't the economy always been part of a political stance? The economy is one of the top 2/3 factors that people consider when voting, hence being important for re-election. It would be in the best interest of anyone trying to run for election to strategically paint a good/bad picture of the economy. This has been the case probably going back to the 1930s if I were to guess.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by partiallypro on Thursday July 28, 2022 @01:01PM (#32267079)
It certainly impacts people's votes, but when I go to a news site I don't think in the 70s, 80s, etc you'd find people trying so very hard to say a contracting economy is just a "transition" and not a recession. My point is mostly on what the press is doing in their reporting and trying to protect the current party in power ahead of the mid-terms. I know it would be the opposite if things were reversed, with Fox denying the economic reality. I just find it pretty pathetic. What would be the harm in reporting we are in a mild recession other than it runs counter to the White House?

The press is one of the most loathed things in the country and they always seem to dig their grave even deeper.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by mym1990 on Thursday July 28, 2022 @01:57PM (#32267954)
I see what you're saying as I reflect on the current landscape of media in general. To be fair I was born in the 90s, so no real idea of what the media landscape was pre-2000s basically. The media now is obviously much different, no internet back in the 70s, news sources were seemingly more trustworthy, there was maybe less political division?

To run a counterpoint though, recessions are self-reinforcing. I think what the Fed has tried to do with all its might is to keep the picture as rosy as possible. Once it is officially out there, companies start cutting budgets, people tighten their wallets anticipating harder times, and it just kind of goes in a few cycles like this.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by snikeris on Thursday July 28, 2022 @02:28PM (#32268362)
I also find it pathetic. However the press is open to enterprising individuals. We don’t have to keep patronizing the same lousy news outlets. Who’s got the real scoop these days?
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @12:56PM (#32267003)
> How did we get to a point where actual data can be outright denied or absorbed based on your political viewpoint?

Our elites—I don’t mean that pejoratively, but descriptively—used to adhere to institutional values. When I joined a prominent NYC law firm 10 years ago nobody commented on the fact that it was named after someone who argued the pro-segregation other side of Brown v. Board. The institution, not only of the firm but the legal process itself-where even segregationists are entitled to their day in court—was a credo that transcended individual politics or individual notions of “justice” or “human rights.”

That flipped sometime in the last decade. Our institutions have been overtaken my millenarianism: https://en.wikipedia.org/wiki/Millenarianism. It’s a belief system that transcends institutional values—in the law, the media, everywhere.

Do you remember “The Resistance?” Where Clinton-supporting government employees pledged to work within the bureaucracy to defeat the agenda of the duly elected President—their boss? The craziness we’ve been seeing from conservatives lately is a reaction to that total abandonment of institutional values.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by selimthegrim on Thursday July 28, 2022 @02:23PM (#32268304)
I am just wondering who the “institutionalists” you speak of were in East Pakistan in 1971.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @04:32PM (#32269759)
I don’t think there were any. My sincere belief is that the greatest strength of British society, and American society by extension, is that the institutionalism. People will jump off a bridge if a court orders them to, and so long as the proper procedures were followed.

That’s breaking down in America, and politics here is increasingly reminding me of politics on the subcontinent.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tptacek on Thursday July 28, 2022 @06:34PM (#32270869)
I don't think you could persuasively defend with evidence the claim that American politics resembles that of the subcontinent.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @07:22PM (#32271259)
What distinguishes Americans, in my mind, is that they're rule followers. As long as the rules are followed, they will accept decisions that they disagree with, or even think are quite unjust. Folks on the subcontinent typically think in terms of right and wrong, or even lower than that, in terms of tribalism such as Hindus versus Muslims. I see Americans devolving into both those lesser forms of politics.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tptacek on Thursday July 28, 2022 @07:39PM (#32271392)
It's understandable that someone would reach that conclusion if all they observed was the J6 committee hearing videos. But on a day-to-day basis, people are behaving essentially the way they always have. People still call in zoning violations expecting issues to get resolved, and they still jaywalk. Nobody's asking for a bribe to install the cable.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @10:01PM (#32272351)
We’re not there yet, but we are well on the way to becoming a third world country politically. Trump is a politician fit for a third world country. But we also had members of Congress recently abandon their institutional roles and get themselves arrested at protests. I think even Sanders had more dignity than that.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by pvg on Thursday July 28, 2022 @11:34PM (#32272871)
John Lewis was arrested at protests five times as a member of congress and the republic was fine and likely better for it.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tptacek on Thursday July 28, 2022 @11:28PM (#32272843)
Like many thousands of people, Sanders was arrested at civil rights protests. I don't like Sanders, at all, but he certainly gained "dignity points" for that. The logic you're using to flatten things down isn't working; it's equating things that can't reasonably be equated.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by selimthegrim on Thursday July 28, 2022 @10:50PM (#32272633)
Surely this happened in the 60s (getting arrested)
[dead]
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @03:18PM (#32268947)
> Conservatives started going crazy long before that. Keep in mind that there was no "The Resistance" before Trump was elected, and Trump being elected is absolutely mind bogglingly crazy.

When exactly was that? Republicans ran "Mittens" Romney in 2012 (and John McCain in 2008). Two men whose adherence to institutional norms is irreproachable. Yet, as Vice President, Joe Biden said that Romney would put Black people “back in chains.” That was after prominent Democrats spent years claiming Bush “stole” the 2000 and 2004 elections. https://freebeacon.com/elections/terry-mcauliffe-championed-...

Then Trump won in a fair election in 2016, and Republicans won the House by a million and a half votes. Democrats went completely ape-shit at the emergence of Trump, and the media, unelected bureaucrats, etc., all shredded institutional norms in response to him. Clinton claimed he was an “illegitimate President.” https://www.washingtonpost.com/politics/hillary-clinton-trum.... The rhetoric convinced half of Democrats that Putin had “tampered with vote tallies” to get Trump elected: https://twitter.com/sahilkapur/status/815256370958237696?s=2...

All the crazy stuff from conservatives--the election denialism, etc.--came in response to that.

> Further, Trump being elected happened nearly a decade after the emergence of the Tea Party, a batshit insane movement.

There's nothing "batshit insane" about the Tea Party. They're just the ideological wing of the party, just like the AOC/Sanders wing of the Democratic Party. The Tea Party did nothing outside of established procedures.

> Abandonment of institutional values? Like refusing to even try negotiating legislation with any resemblance of good faith to do good by the citizens of the country?

The parties obviously disagree about what's "good" for the country. “Not doing what Democrats want” isn’t a breach of political norms.

In the U.S., the primary lawmaking body is the House. Democrats lost that in 2010 by almost 6 million votes: https://en.wikipedia.org/wiki/2010_United_States_House_of_Re.... Republicans have no obligation to move forward on Obama's legislative priorities when they control the House, just as Democrats had no obligation to move forward on Trump's legislative priorities when they won control of the House in 2018.

> Like the explosion of the use of the filibuster in 2009?

The explosion in the filibuster was done by Democrats at the end of Bush's last two years: https://www.senate.gov/legislative/cloture/clotureCounts.htm. It was double in 07-08 compared to 05-06. It was no higher in Obama's first two years than in Bush's last two years. The filibuster is a red herring in the last six years of Obama's term, because Democrats didn't control the House and couldn’t win a majority for their legislative agenda anyway.

Remember, the filibuster is a legislative rule that can be overturned by a simple majority vote of the Senate, which Democrats had from 2007 to 2014. They could have dropped the filibuster at any point during that 7-year span. They didn’t do it because it’s critical to their strategy.

> Like refusing to bring a Supreme Court justice nomination to a vote on the floor of the Senate?

This is the only thing that comes close to qualifying as a norm violation.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tptacek on Thursday July 28, 2022 @06:33PM (#32270859)
This argument is all over the place.

The history of allegations of vote rigging goes back to the 19th century; there were loud, public allegations regarding at least Kennedy, Clinton, Bush, and Obama before Trump. What was notable, of course, about Trump's rigging claims is that they were accompanied by an actual effort to overturn the election, something that has no precedent. That wasn't the "elites"; that was an outsider effort.

Election denialism clearly isn't a reaction to a rejection of institutional norms by elites, unless we're talking about elites during the time of Tilden.

I might agree with you about the filibuster, the Tea Party (bad, but not batshit), and the refusal to confirm Garland. But that doesn't help your argument, which is I think fatally broken.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @08:21PM (#32271647)
> The history of allegations of vote rigging goes back to the 19th century; there were loud, public allegations regarding at least Kennedy, Clinton, Bush, and Obama before Trump.

When Terry McAuliffe became chairman of the DNC, he said that "Katherine Harris, Jeb Bush, Jim Baker, and the Supreme Court ... tampered with the results" of the 2000 election. At the 2004 DNC Convention, he said that Republicans "stole" the 2000 election: https://twitter.com/TeamYoungkin/status/1442488094301822980.

Comparably prominent figures on the Republican side were not saying similar things about Clinton or Obama. Unlike Hilary Clinton said about Trump, McCain and Romney never said Obama was an "illegitimate" President.

> What was notable, of course, about Trump's rigging claims is that they were accompanied by an actual effort to overturn the election, something that has no precedent. That wasn't the "elites"; that was an outsider effort.

Sure. Trump is worse than anything Democrats did from 2000-2018. Certainly individually, possibly in the aggregate.

> Election denialism clearly isn't a reaction to a rejection of institutional norms by elites, unless we're talking about elites during the time of Tilden.

Trump's ability to deny the legitimacy of the election and maintain the support of the same voters who nominated Mittens is absolutely a reaction to elites rejecting institutional norms. For two decades, CNN sanctioned Democrats' election lies instead of condemning them.

Then came 2016, when Democrat-voting federal employees declared war on Trump--the duly elected President--through the "Resistance." If you wanted to convince the American public that the "deep state" exists and that the rules have already been thrown out the window--to make it trivial to draw comparisons between DC and the Capitol from "The Hunger Games"--you could not have picked a better way to do it.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by tptacek on Thursday July 28, 2022 @08:49PM (#32271835)
If the best argument you have is that Terry McAuliffe, someone not one Democrat in 10 has even heard of, occupying a role not one Democrat in 10 could coherently describe, claimed that the historically complicated and tendentious 2000 election was stolen, I feel I've made my case well.

Again: that case is that there is nothing new about claims that elections were stolen, but that there is clearly something new about a President literally attempting (in more than one way) to rig an election after losing.

As it happens, I agree with you (or at least, the professors who taught you this at Northwestern) about the 2000 election --- that is, that it was correctly decided. But not only did Terry McAuliffe believe 2000 was wrongly decided, so did almost half the Supreme Court. And despite all that, there was a peaceful transfer of power, and not a whisper from the Democratic party that any of the institutions of government be bent or subverted to "correct" the result.

You haven't provided any evidence to connect obstinate federal employees to Trump's attempt to overturn the 2020 election, and so I don't think I need to address that point. I don't agree with you about those obstinate employees (obstinate employees brought Nixon down, after all), but that doesn't matter.

The idea that the Democrats are somehow responsible for Trump's effort to literally rig the 2020 election is a strange hill to die on. I don't think many reasonable people would be sympathetic to the argument.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by selimthegrim on Thursday July 28, 2022 @11:13PM (#32272752)
He said Wall Street/the big banks would put them back in chains, not Romney.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by rayiner on Thursday July 28, 2022 @11:59PM (#32272996)
You can read the transcript right here: https://www.c-span.org/video/?307584-1/vice-president-joe-bi...

The references to “they” throughout the speech is usually to Romney and Walker, sometimes to Republicans generally: “Ladies and gentlemen, Governor Romney and Congressman Ryan are running on a theme that they announced at their announcement -- and I'm not being cynical about this -- this when I say they say, quote, we're running to restore the dreams and the greatness of this country. What they didn't tell you in that announcement.”

The immediately preceding text is: “Look at what they value and look at their budget and what they're proposing. Romney wants to let the -- he said in the first hundred days he's going to let the big banks once again write their own rules -- (audience murmurs) -- unchain Wall Street.”

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by RspecMAuthortah on Thursday July 28, 2022 @02:15PM (#32268198)
This is part of the problem that the parent comment is referring to - putting all conservatives under the same umbrella. Tea party is different from most Trump voting working class. Conservatism in recent era has taken a very distinct shape and failure to understand this by elites have led to this very phenomenon the comment you replied to is referring to. How do you explain a non-negligible part of middle of America who voted for Obama voting for Trump?

As far as I am concerned, Tea Party acted in a capacity within the institution. The stuff we have seen under Trump including leaking secret military orders just to bring Trump down shows an absurd amount of collusion of institutional bureaucracy, media, corporate powers and security forces (such as FBI) which was unthinkable a decade ago and erodes the core values and credibilities of those institutions. For example, a decade ago FBI was a revered institution by conservatives who would go at length to support its over reaching acts and its the liberals who would question them. How did the table turn so bad that FBI is now actively being used as a force to silence opposition arresting anyone they like in the middle of night in their underwear while inviting media camera crews?

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by InefficientRed on Thursday July 28, 2022 @09:22PM (#32272054)
> How do you explain a non-negligible part of middle of America who voted for Obama voting for Trump?

The labor movement always had a socially reactionary underbelly. My hypothesis: it wasn't bad economic times that activated Obama-Trump voters. It was, rather, good economic times that triggered those voters to flip from labor-first to identity-first. The tension was always there. This is why the Tea Party fizzled and why Romney couldn't activate the switch -- reactionary blue collar folks knew intuitively that those movements weren't "on their side". But by 2016 a bombastic billionaire (also obviously not on their side) could be excused because the economy was good enough to at last put identity first.

I grew up in a suburb that flipped and my wife is from a mid-sized non-metro city that also flipped. Obama Trump voters are substantially all of our social circle.

A lot happened, but honestly, "youtube's algorithm and super effective conservative media" is probably the best explanation in over 1/2 of the roughly 3 dozen anecdotal cases. It's just pure identity.

Some blame Obama for outsourcing and the GFC, but that's mostly noise. First of all, the major factory that closed wasn't outsourced. It closed because the company was wildly mismanaged, and was not replaced with a foreign factory. Also, this happened five years before the GFC and Obama's election. Most of the folks in our circles remained employed throughout that GFC and all of them did very well from 2010 on-wards.

They're currently all doing very well financially; far better than the late 20s/early 30s city dwellers whose conversations I overhear in the coffee shop. Red America can afford single family homes with big yards, saves for retirement, and just generally lives a very comfortable life unimaginable in blue cities. With jobs in law enforcement, trucking, and in hospitals which don't require even an associate's degree. It's really the American dream -- graduate from high school, six weeks of training, and you're making enough to afford a house and kids and retirement within a couple years.

The resentment and utter hatred of liberals is visceral and real. Pretending it's economic is bullshit cover. Tell someone sharing a bedroom in NYC that their counterpart with less education, who works fewer hours, and lives in a SFH with a pool hates them because of the unfair economic spoils of the former.

Also, the economy was doing extremely well in 2016. Economics is now top-of-mind, but it didn't even come close to motivating them to vote for Trump in 2016. That was pure identity politics.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by MisterBastahrd on Thursday July 28, 2022 @12:39PM (#32266739)
We have a well established definition for what a recession is, and none of it has to do with anecdotes or political grudges.
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by seanmcdirmid on Thursday July 28, 2022 @12:43PM (#32266809)
> Worse, even if we're in recession it's pretty mild, so I don't even know why there is so much handwringing about it.

Ideologies tend to deal in binaries. We are either in a recession and the sky is about to fall or everything is great. Jobless recoveries or full employment recessions don't fit into binary narratives.

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by roflyear on Thursday July 28, 2022 @03:52PM (#32269329)
You're making it political with your comments, then you are surprised it is political? Hah
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by ffggvv on Thursday July 28, 2022 @01:58PM (#32267976)
yes i have a hard time seeing robert reich arguing that unemployment is what matters if trump was in office and midterms were 4 months away
Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by qqqwerty on Thursday July 28, 2022 @04:18PM (#32269602)
How much air time is Fox News spending on the falling gas prices? How much time did they spend on the subject when prices were rising?

Also, his latest tweet on the subject seems pretty balanced: https://twitter.com/RBReich/status/1552739457433972737?ref_s...

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by ffggvv on Sunday July 31, 2022 @02:28AM (#32293675)
lol that’s pretty funny. forgot he’s the type that just wants the govt to keep printing money despite the massive inflation. that’s the number one goal in his life.

and yes fox news is right leaning but atleast they’re open about it. and a 10% drop after a 2x increase isn’t that exciting

Re:US Gross Domestic Product, Second Quarter 2022 (Advance E... by smilebot on Thursday July 28, 2022 @12:41PM (#32266773)
/opinion without any evidence

I like to believe that there is a bigger picture here. Oversimplification: An economic downturn when there is a rise in nationalist sentiment had given birth to people like hitler.

Maybe if the majority perceives that everything is fine, when it isn’t, might help prevent that?