Chart of the Day: GDP Growth in Q3

No surprises today: GDP in the third quarter grew significantly:

The chart above is the normal look at GDP growth, but since the last two quarters featured such unusual behavior it might be better to take a different kind of look:

Give or take a bit, we’re still about $1 trillion below where we’d otherwise be, so the effects of the coronavirus are very definitely still with us.

In other news from the BEA release, personal income was down by half a trillion dollars and personal savings were down by $2 trillion. The drop in income was due to the end of pandemic relief programs, and the drop in savings was due to families drawing down their savings to make up for lost income. Roughly speaking, families used part of the money from the CARES Act to bolster savings and then started spending it down when that assistance ended.

The Q3 increase in GDP was driven entirely by the private sector, led by big increases in purchases of durable goods and commercial equipment. The federal government did nothing to help, decreasing its spending thanks to the end of the CARES Act.

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IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

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