U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected

Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by coliveira on Thursday October 26, 2023 @10:15AM (#38025885)

The deficit is on percentage of GDP! Part of this GDP is direct consequence of government deficit spending. If you remove the 8% deficit you remove a big chunk of this GDP growth (probably all). But the situation shows that the gov is spending way more than the resulting growth, so this means it is a completely inefficient investment. You should expect at least 1 to 1.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by pavlov on Thursday October 26, 2023 @01:06PM (#38028547)

In 2019, the US economy grew by 2.3% and the federal deficit as percent of GDP was 4.6%.

So isn't the situation today exactly the same as four years ago, before Covid, under a Republican administration?

Yet somehow I never heard this argument that GDP growth is a function of the deficit back in 2019.

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Re:U.S. GDP grew at a 4.9% annual pace in the third quarter,... by coliveira on Thursday October 26, 2023 @05:03PM (#38031674)

I have always pointed out this, be it a republican or democrat government. They all use the same tricks to inflate GDP by borrowing. Now, I'm not against borrowing for the sake of economic growth, but you cannot keep borrowing 6% to get 3% growth, in the end this policy will not work.

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