The U.S. economy grew at a much better-than-expected pace to end 2021 from sizeable boosts in inventories and consumer spending, and despite signs that the acceleration likely tailed off toward the end of the year.
Gross domestic product, the sum of all goods and services produced during the October-through-December period, increased at a 6.9% annualized pace, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been looking for a gain of 5.5%.
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“The strength of the economy last year stood in stark contrast to the collapse in activity in early 2020, but also speaks to the success of both the public and private sector in quickly adapting to the unprecedented challenges created by the pandemic,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “That being said, potential headwinds still exist, as the global risks associated with the COVID-19 pandemic persist.”
In other economic news Thursday, [jobless claims totaled 260,000 for the week ended Jan. 22, slightly less than the 265,000 estimate and a decline of 30,000 from the previous week.
Perspective, is it US systemic or worldwide ? This wiki data points to pandemic and
economic surge as recovery sets in. Debatable by some probably.
The 2021–2022 inflation surge refers to higher than average economic inflationthroughout much of the world that began in early 2021. It has been attributed to the 2021 global supply chain crisis caused by the COVID-19 pandemic, as well as poor fiscal policies by many countries and unexpected demands for certain goods.[1] As a result, many countries have seen their highest rates of inflation in decades.
Another way to look at historically; 1973-1982 was some rough waters:
Shell sold it’s 50% stake in the deer park refinery to Pemex, who already had a 50% stake in the refinery. Not sure where you’re getting that they sold 50% of their company. Not sure why you think Shell is our oil company, either. They’re a European multinational, which is why they’ve been divesting refinery assets. Euro oil companies, spurred in part by European court decisions, are moving towards a carbon neutral model (or at least feigning to). Shell is getting rid of over half of their refineries. How do you see this affecting U.S. economic growth?
If referring to Deerpark Refinery, it was not US owned but Royal Dutch Shell (now just Shell) asset.
Prior to 1986 (?) it was Shell Oil Company asset, back when US Shell Oil was a separate company. Shell ( the UK headquartered entity) has been on a US refinery selling spree for many years.
I suppose I would prefer for US companies to own US foot-printed refineries. But if worse came
to worse , I suppose we could always “nationalize” them. Yes that sounds like banana republic stuff, and I don’t know if the US has ever done that in any industry, but it’s always an option in
extreme global circumstances I guess. The foreign owned assets still have to comply with local
laws and environmental regulations, so maybe it’s not that big of a deal as long as the manufacturing complex is still physically here.
At least there was a big gap between growth and inflation. It was a successful year for the country, not some 1980. The bad thing is GDP growth is actually a poor indicator for how the average American is doing. Inflation is a direct hit to the lower and middle class typically.
I’ve always thought GDP and unemployment rate were way over valued by politicians. Maybe they are used because they are simple numbers, but more important is average income, number of people living in poverty, number of people living in debt, etc.
And consider also China’s Belt and Road Initiative.
That’s why I scoff at notions that the USA should be or become isolationist.
The reason why we shouldn’t is simple: because if we isolate ourselves and don’t proactively and aggressively intervene in the world, then you can be sure of ONE thing: SOME OTHER COUNTRY WILL…and it may be a country that is both a) averse to American interests, AND b) a country whose influence worldwide may NOT be good.
Communist China sure as Hell isn’t isolating itself.
Given that, the USA, as leader of the FREE world, won’t either. On the contrary, the USA will be a competitor in every respect.
No doubt , lower earners feel the pinch the most. Another key is wage growth to
consider in assessing economic status.
United States increased 9.16 percent in December of 2021 over the same month in the previous year. source: U.S. Bureau of Economic Analysis
Focusing on any one eco stat makes for good political speaking points to the respective bases. But economics is complex. Runaway wage growth fuels inflation too. I’m most curious
when the near zero interest rates we’ve had for 17 years ends finally ends.
I am more concerned with inflation. I can already see it in the cost of my supplies for my business. I also believe my payroll taxes have gone up, FUTA, SUTA and federal. I’ll know more when I meet with my accountant but I definitely can tell I’ve paid significantly more in business taxes than the previous year and pre Covid.
The middle class income tax cuts were set to start increasing/expiring in 2021 with most of them completely going away in 2025. This was built into the 2017 tax cuts/overhauls.
This is a great example of the “read between the lines” state of the economy. #1 four millions workers short to pre-pandemic #2 inflation has far out paced higher wages #3 higher fuel and heating cost #4 lingering covid mandates #5 higher interest rates
Ongoing supply chains issues only add to the above. Just look back to the pre-pandemic numbers including inflation and minorities employment specific data. This current number looks great but is it?
How come we are seeing supermarkets bare shelves?
Cost of chicken, beef, pork, seafood etc…is going through the roof when you can find them. An economy that has 6.9% pace should not be facing these on going problems. Are we actually underperforming? We might already have the answer.
I definitely made more than the Covid year for sure. The Covid year was my worst year ever, as far as my business is concerned. But I was also thinking it could have something to do with shutting everything down. I laid off the staff that year so I didn’t have much of a payroll for 6 or 8 weeks (I can’t remember how long it was anymore). So that could also be the difference.
