DESPITE A WEAKENING ECONOMY THE US RATE OF PROFIT HOLDS UP IN Q2 2024
August 30, 2024 3 Comments
- Comment
- Reblog
-
Subscribe
Subscribed
Already have a WordPress.com account? Log in now.
This WordPress.com site is dedicated to independent working class politics. Contact me at briangreen@theplanningmotive.com
August 30, 2024 3 Comments
THEPLANNINGMOTIVE.COM 
According to Dallas Fed the current U.S. immigration surge is unprecedented citing CBO’s estimate of 6 million migrants in 2022 and 2023, with a projected 3.3 million for 2024.
While Dollar General and Big Lot store clousers continue Ferrari’s market cap reaches record $93+ billions.
And again, according to CBO, 2024 Federal deficit is about 5.6% of the GDP.
Real GDP: 2.2 – 5.6 – .7 = -4.1% growth. A negative 4% recession. This is probably overly simplistic.
Where would the US economy be without the massive immigration and deficit spending?
You are correct about the deficit spending. I have pointed this out in a number of articles. Recently the deficit has stopped growing and this has held back economic output. I would also add in the stock market rally, although it is less important. I have a different take on mass immigration. As many work off the books due to being taken advantage, their income may not be reported officially. This could explain, as I have pointed out to Michael Roberts, for the extraordinary gap between Gross Domestic Income and Gross Domestic Product. Although their income may not be recorded their spending on goods and services is, which is why GDP is bigger as it is based on expenditures.
A number of chains meeting the needs of the low paid are in trouble, well spotted.
CBO projects that Inflation-adjusted GDP is set to add 0.2% on average every year because of greater immigration but Dallas Fed, referring to Hamilton Project study, claims higher immigration has contributed about 0.1 percentage points to GDP growth annually in 2022 and 2023 and is projected to do so again in 2024. Huge discrepancy. Seems like you may have a more accurate estimate based on the gap between GDI and GDP.
CBO: https://www.cbo.gov/system/files/2024-02/59710-Outlook-2024.pdf
Dallas Fed: https://www.dallasfed.org/research/economics/2024/0702