GDP Grew at Anemic 1.7% Rate Last Quarter. Thanks, Sequester!


The economy sputtered along in the second quarter, growing at an annual rate of 1.7 percent. Whether you consider this good news or bad probably depends on what you expected the impact of the sequester and the fiscal cliff to be. If you figured that $2 trillion in extra austerity measures would tank the economy completely, then a gain of 1.7 percent looks pretty good. If you figured it would have a modest effect, then 1.7 percent is probably about what you expected.

As I recall, CBO estimated that the sequester alone would cut about 0.8 percent from GDP growth. The fiscal cliff deal might have cut another 0.4 percent or so. If they were right, it means that 2.9 percent growth has been pared back to 1.7 percent. My rough eyeballing of the figures suggests to me that this was probably an overestimate, but probably only by a bit. I’ll bet that without the latest round of austerity, growth would have been in the range of 2.5 percent.

So we’re recovering slowly and austerity is hurting. Beyond that, there aren’t a lot of fascinating nuggets to be gleaned from this quarter’s report. However, this is the first quarter that BEA has produced its long-awaited new measurement of private investment in intellectual property products, and there are some interesting tidbits there. For more on this, see Dylan Matthews’ writeup over at Wonkblog. 

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Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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