by Now that more data is out, looks like GDP will be down by over 1/3 for the quarter, as the negative labor supply shock continues. While fiscal policy works to support incomes and spending (GDP) obviously spending is still falling short, and with it private sector income (GDP=sales=income). This story doesn’t change much until people start returning to work which restores incomes, output, and spending. Until then business has to make due with that much less total spending. And while some will do well, the majority will necessarily do that much worse. https://www.calculatedriskblog.com/2020/05/census-household-pulse-survey-shows-475.html
Topics:
WARREN MOSLER considers the following as important: Economic Releases
This could be interesting, too:
WARREN MOSLER writes Consumer sentiment, real retail sales, industrial production, wages
WARREN MOSLER writes New manufacturers orders, vehicle sales, unemployment claims, rents, oil prices
WARREN MOSLER writes Saudi price hike, private payrolls, new hires, corporate profits
WARREN MOSLER writes Pending home sales, Durable goods orders, oil rigs and production
Now that more data is out, looks like GDP will be down by over 1/3 for the quarter, as the negative labor supply shock continues. While fiscal policy works to support incomes and spending (GDP) obviously spending is still falling short, and with it private sector income (GDP=sales=income).
This story doesn’t change much until people start returning to work which restores incomes, output, and spending. Until then business has to make due with that much less total spending. And while some will do well, the majority will necessarily do that much worse.
https://www.calculatedriskblog.com/2020/05/census-household-pulse-survey-shows-475.html
