The US Economy, A Twisted Tale of Statistics

 


In addition to the evidence that one needs to look at more than one or two statistics, in isolation, in order to judge the strengths and economic downturns, in the last few weeks a few statistics have been released that raise conflicting issues facing the US economy.


In a statement, the US Department of Commerce said the US economy had grown faster than expected at 0.4% in the fourth quarter of 2012. Indeed, the annual figure was better than the previous growth rates of 0.1%, indicating an increase in industrial investment. and equipment. However, despite the revision, the Department warned that the economy is still weak, which should not surprise many. Deep digging, declining defense spending and government spending have hurt the economic impact resulting in a dramatic decline from the third quarter. One could conclude that the increase in the cost of machinery and equipment was partly a relief to the supply, as many businesses delayed spending and upgrading equipment for many years. Given this decision and the continued decline in government spending, one should question the ability of private companies to increase spending at a faster rate than cutting government spending?


Moreover, in view of the latest trends, the likelihood that GDP will outweigh the growth achieved in 2012 when GDP grew by 2.2%. As a reflection of the government's vision for a fragile economy, in a report released last week, the US Federal Reserve stated that, although the economy is slowing down, more resilience measures are needed to strengthen resilience.


Looking at another statistic, one might conclude that the economy is in a shambles. Despite the reduction in U.S. unemployment claims, the number of people in the organization's food stamps has reached a record high in the US. According to the United States Department of Agriculture, in 2012, the stamp system was the largest, with an average of 46,609,072 people listed on a monthly basis in 2012. A total of 47,791,996 people were on the program in December 2012. The coalition government also said the number of households in food stalls was 22,329,713. This does not indicate a positive impact on the economy, unless one looks at the momentum of food stamps.


By region, Texas had the highest number of participants per month in 2012, with an astonishing 4,038,440 people drawn from the program. This equates to about 15.5% of the population of Texas. The second highest is California, with 3,964,221, and then Florida, with 3,353,064. Washington, D.C., with an estimated population of 617,996, had an average attendance of 141,147. That is, about 23% of DCs are in food stalls, according to figures provided by the coalition government.


In view of these figures, the above-mentioned discussion of slower GDP growth, and the ever-changing conditions of unemployment, one has to question the full potential of the US economy. The most frequently missed figures, the actual unemployment rate, which is the US unemployment rate and the number of people who are unemployed or have stopped looking for work, are estimated at 14.4%. Not a very low number. Apparently the astonishing statistics on food stamps paint a picture that greatly affects the state of the US economy. Concerned about the Euro zone, and recent events in Cyprus, the US economy is certainly not out of the woods. Indeed, it is in a shambles, as any earthquake could disrupt an ever-growing economy.


So why are US markets at record or near level? Perhaps this too is in a shambles.


In further proof that one needs to look at more than one or two figures, in the last few weeks, figures have been released that raise conflicting issues facing the US economy.


On the positive side, the US economy has grown faster than expected by 0.4 percent in the fourth quarter of 2012. However, the number of people in government food stalls has reached a record high in the US. This does not indicate a positive impact on the economy, unless one looks at the momentum of food stamps.

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