GDP Increases At a Smart 4.0% Rate in Second Quarter

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Here’s something that counts as good news: GDP increased in the second quarter at an annual rate of 4.0 percent. At the same time, the first quarter numbers were revised to a slightly less horrible -2.1 percent growth rate. This means, roughly speaking, that the economy has grown about 1.9 percent over the first half of the year.

Now, this is obviously nothing to write home about. A growth rate of 1 percent per quarter is pretty anemic. Still, it’s better than expectations after the terrible Q1 numbers, and the rebound in Q2 suggests there really was some make-up growth. A fair amount of this growth came from inventory build-up, which is normally a reason for caution, but after two previous quarters of inventory decline it’s probably not the warning sign it might otherwise be.

All in all, this is decent news. It’s still not possible to say that the economy is roaring along or anything, but the Q1 number now looks like it really was an anomaly. Slowly and sluggishly, the economy is continuing to recover for the ~95 percent of us who haven’t been unemployed for months or who haven’t given up and exited the labor force entirely. For those people, economic growth is still slow enough to leave them behind. One good quarter is nice, but we still have a lot of work to do.

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We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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