News / Economy

US Economy Grows Two Percent in Third Quarter

Multimedia

The US economy is growing. That's the good news.  The bad news is that economic growth remains sluggish.  The US Commerce Department says GDP (Gross Domestic Product), the broadest measure of the US economy, grew 2 percent, at an annual rate, between July and September - a slight increase from the previous quarter.

The White House says the government report is more evidence that the economy has weathered the worst downturn since the 1930's.  But the numbers are of little help for Democrats who face steep losses in next week's mid-term elections.

Consumers helped boost growth in the third quarter - spending at the fastest rate since the end of 2006 before the recession hit.  As a result, the US economy grew slightly faster than the previous quarter - but not enough to fuel significant job growth.

Speaking at a steel factory in Maryland, President Barack Obama said his policies are moving the economy in the right direction. "But as we continue to dig out from the worst recession in 80 years our mission is to accelerate that recovery and encourage more rapid growth so business like this one can continue to prosper and get millions of Americans who are still looking for jobs back to work," he said.

Nearly 15 million Americans are unemployed.  And with frustration growing among voters, polls show that Republicans are likely to take control of the House of Representatives, severely reducing the president's ability to move forward with a middle class agenda.  

But economist Dan Greenhaus at trading firm Miller Tabak, says a Republican-led Congress would be good for the economy. "Furthermore, to the extent that a Republican takeover of the House leads to some finality on the tax cut debate, and hopefully an extension of the Bush tax cuts, that in turn will in theory help lead to further economic expansion and a reduction of the unemployment rate," he said.

Of course, not everyone agrees.  Democrats say renewing the Bush tax cuts next year to the wealthiest Americans would add $700 billion to the deficit.  

Professor Joe Foudy at New York University's School of Business says demand drives job growth - not lower taxes. "I mean will businesses really hire someone because they can save money on their taxes for the next 12 months?"

Regardless of how Democrats fare in Tuesday's elections, Mr. Obama urged both parties to work together for the good of the country. "Political season's going to be over soon and when it does all of us are going to have a responsibility, Democrats and Republicans, to work together wherever we can to promote jobs and growth," he said.

The Commerce Department expects the US economy will grow at an annual rate of 2.6 percent this year.  

Economists say it would have to expand by 5 percent to reduce the nation's nearly double digit unemployment rate by one percent.

You May Like

India PM Modi's party distances itself from religious conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote a Hindu-dominant agenda by luring Muslims and Christians to convert to Hinduism More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.