Second-quarter GDP plunged by worst-ever 32.9% amid virus-induced shutdown

[LiberalArkie]

PUBLISHED THU, JUL 30 2020 8:31 AM EDT UPDATED 9AM

The U.S. economy saw the biggest quarterly plunge in activity ever, though the plummet in the second quarter wasn’t as bad as feared.

Gross domestic product from April to June plunged 32.9% on an annualized basis, according to the Commerce Department’s first reading on the data released Thursday. Economists surveyed by Dow Jones had been looking for a drop of 34.7%.

Still, it was the worst drop ever, with the closest previously coming in mid-1921.

The report “just highlights how deep and dark the hole is that the economy cratered into in Q2,” said Mark Zandi, chief economist at Moody’s Analytics. “It’s a very deep and dark hole and we’re coming out of it, but it’ going to take a long time to get out.”

Snip

https://www.cnbc.com/2020/07/30/us-gdp-q2-2020-first-reading.html

[flor-de-jasmim]

1. Many times I have been reminded of Obama 2015

One of his jokes in the WH Corresp Dinner was this:

"It gets worse. Just this week, Michele Bachmann actually predicted that I would bring about the biblical end of days. Now that's a legacy! That's big. I mean, Lincoln, Washington -- they didn't do that."

Maybe this was the part that Trump latched on to.

[Hortensis]

2. Worst annualized drop EVER, more than triple the 1921 record.

For the second quarter alone, it's a 9.2% drop in GDP, representing economic devastation for many millions of Americans, even destitution for many who didn't imagine it could happen to them.

[gratuitous]

3. That makes no sense!

We handed out billions of dollars to the wealthy and the greedy, and the GDP still fell? I just can't believe it. Congress is contemplating a follow-up bill, maybe we need to give the wealthy and the greedy twice as much?

This exercise in absurd Republican thought brought to you by your friendly neighborhood gratuitous who would like to think this won't be voiced in the next few days, but is almost certain something resembling it will be.

[LiberalArkie]

4. The GDP of the Cayman Islands probably went up though