February 01, 2013 at 10:05 AM EST
What the Heck Is Happening to the US Economy? How to Get the Recovery Back on Track
GDP fell in the last quarter of 2012. It was only a fraction of a percent but it means the recovery is on hiatus. Why? Negative inventory adjustments tend to be short-lived so let me leave that aside although it definitely made last quarter’s statistics look worse. Of the longer-lived forces on the positive side consumer spending rose home-building rose and business investment on buildings and equipment rose. On the negative side exports fell more than imports and government spending fell. Net exports and government spending are the big worries going forward as well. How much the rest of ...
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