US GDP Jump Hollow if Unemployment Keeps Rising

Spending and home prices are up, but not enough to help jobs

(NEWSER) - The government’s optimistic reading of GDP growth in the 3rd quarter was distorted by a pair of rose-tinted glasses, it now says. The Commerce Department has revised its estimate down to 2.8% from 3.5% on evidence that stimulus programs like Cash for Clunkers and the homebuyers' tax credit did not spur as much spending as previously thought. Still, home spending was up 19.5%, and durable goods spending up 20.1%. More»

Critics attacking 'pet programs' have 'misconstrued' the effort

(NEWSER) - Those who dismiss the Recovery Act as “being spent on pet programs” are wrong, writes the man tasked with administering it. Writing in a New York Times op-ed, VP Joe Biden contends that the stimulus has “brought us back from the precipice.” Two-thirds of it “goes directly to tax cuts, state governments, and families in need, without red tape or delays”; the rest is going to infrastructure work that creates jobs and provides for long-term growth. More»

(NEWSER) - When the economic crisis turned terrifying last winter, Washington finally got its act together and passed a massive stimulus package. But now, writes New York Times columnist Paul Krugman, the US faces a slower but more dangerous "jobless recovery" over the next few years and an "utterly terrifying" climate crisis decades out. Faced with these long-term dangers, the government is acting like the metaphorical "boiling frog"—unaware that it's slowly dying. More»

Teens spend less on food, apparel while video games and DVDs still popular

(NEWSER) - The downturn is causing teens, who usually spend through recessions while parents absorb the pinch, to cut back, Advertising Age reports. Teenagers are spending about 14% less this spring than last, a “dramatic impact” from a demographic that spends an average of $125 billion each year. Unemployment is also cramping spending; the teen jobless rate hit 22% in March, the highest in a decade. More»

Index down 4.8% since Monday

(NEWSER) - Stocks posted losses today as news that US unemployment hit 7.2% moved the markets to the finish of a dismal week, MarketWatch reports. The Dow lost 143.28 to close at 8,599.18, with losses perhaps limited because investors were expecting the bad jobs news. The Nasdaq fell 45.42, settling at 1,571.59, and the S&P 500 dropped 19.38 to close at 890.35. More»