August 28, 2008
2nd Q GDP Shows Growth
The figures for the GDP growth for the second quarter (April to June 2008) are in, and they show growth of 3.3 percent. On the heels of a 1st quarter of .9 percent growth, it appears that our economy, which never was in a recession but was in a short period (less than six months) of slow growth, has picked up some steam. The growth is the highest since the 4.8 percent growth we enjoyed in the 3 Q last year (July-Aug 2007). A second government release documented that tax returns on personal income show an average increase from 2000 to 2006 [given the 2001 do.com crash and 9/11, this is remarkable], with the smallest increases shown in the highest brackets. This is not to say that individual states or cities have not suffered spot recessions, however. Once again, the doom-sayers were and are wrong about a recession and exaggerated our economic problems to further their own aims and ambitions. For pete's sake, we cannot suffer six months of slow growth without wailing to the heavens???
August 28, 2008 | Permalink
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The view of the doom-sayers is captured by this recent note in the Ohio Society of CPAs newsletter:
"CFOs & CPAs: U.S. in a recession
The U.S. economy has already entered a recession and the outlook remains negative according to a majority of CFOs and senior-level executive CPAs surveyed by the AICPA.
For a third consecutive quarter, CPAs working in business and industry continue to foresee slowing economic growth ahead.
A 62% majority of CPA respondents said they were pessimistic about the economic outlook for the U.S. over the next 12 months. This is an increase from the 57% who held negative expectations in the second quarter. Fifty-seven percent of respondents said they believe the U.S. economy has already entered a recession. The survey found only 10% of CPAs in executive positions expressed optimism about the economy, a decline from 12% in the second quarter.
CFOs remain more optimistic about their own organizations than they are about the broader U.S. economy, although the declining trend in economic outlook is mirrored in declining optimism for their own companies."
These are folks who, perhaps unlike the general populace, should understand the meaning of recession.
My question, then: What are the "aims and ambitions" the gloomy CFOs are attempting to further? Are they hoping to get tax breaks for their industries?
Posted by: Derek | Aug 29, 2008 11:53:04 AM