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Recession was deeper than gov't previously thought

Recession inflicted more damage on economy than previously thought, government data show

ap
, On Friday July 30, 2010, 8:34 am EDT

WASHINGTON (AP) -- The recession was deeper than the government previously thought.

The Commerce Department, in revisions issued Friday, estimates the economy shrank 2.6 percent last year -- the steepest drop since 1946. That's worse than the 2.4 percent decline originally estimated.

The economy's plunge underscores why the unemployment rate surged to 10.1 percent in October, a 26-year high.

The revisions in gross domestic product, or GDP, now show zero growth in 2008. That compares with a 0.4 percent gain previously estimated.The economy also grew less in 2007 (1.9 percent) than earlier thought (2.1 percent).

For all three years, consumers spent less and home builders cut more deeply than had been thought. Those factors help explain the downward revisions on the economy.

The revisions also show that struggling state and local governments cut spending more last year than previously thought. And they spent less in 2007 and 2008.

The economy slid into its worst recession since the Great Depression in late 2007. Many economists think the recession ended last summer, although a panel of academics that dates the start and end of recessions hasn't declared when this one ended. The panel usually does so well after the fact.

From the start of the recession in December 2007 until the April-to-June quarter of 2009, the economy sank 4.1 percent. That was deeper than the 3.7 percent decline previously estimated for the recession.

GDP is the broadest gauge of the economy's health. It measures the value of all goods and services -- from machinery to manicures -- produced in the United States.

The Commerce Department's latest revisions reach back to 2007. They're based on more complete data and on methodology thought to be more accurate.

579 Comments

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    Joe B Mon Aug 02, 2010 03:14 pm PDT Report Abuse
    The writer of this article, Jeannine Aversa, has no clue what she is writing. I just read another article she wrote and in it she insisted that the richest 5% ofthe Americans account for 14% of the total spending in the US. That my friend is an absolute lie. The richest 1% of the people own 95% of the wealth in this country and account for at least 95% - 99% of the spending. We are but pawns in their game. We are in a war with the rich. It's not abotu the Republicans and Democrats - It's about the rich controlling this country - There is a vetting process for every Presidential candidate Republican and Democrat - The rich determine which two will best carry out their goals and they are given ample funding but in the end - the rich are happy because both candidates are theirs- Think I'm making this up then why does everyone from McCain to Obama to NJ Rep Governor Christie want to give amnesty to all illegal immigrants when in fact more than 90% of the American people want them deported- because all the rich representing multinational corporations wants them in this country because they lower wage costs - the next step will allow for foreigners to buy anything from radio, television stations, military companies and much more -- an act of treason - our government no longer represents us --- there is still time to win back America but we need to vote out all those representing the Democrat and Republican Parties- only Jan Brewer of Arizona has not been bought.
  • 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this comment
    Terry Mon Aug 02, 2010 06:03 am PDT Report Abuse
    It does not take a highly educated person to realize what the community organizer's idea of running a country would do to negatively impact it. Spend, spend, spend, Blame Bush, repeat ad naseum.

    I do not want my country to fail. I am so ashamed at all of those Kool-aid drinking Obamabots and the state run media who followed the teleprompter reader in chief blindly. How in the world could a Marxist (look up the definition liberals, you will see I am correct) community organizer with no executive experience run the country? He cannot.
  • 3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this comment
    Infidel Crusader Mon Aug 02, 2010 02:48 am PDT Report Abuse
    Remember how the health care bill was rammed down America's throat when in the future, when you're all broke and destitute, and all you will have to eat are those government issued Soylent Green crackers. Because people took their freedom for granted and didn't find out EVERYTHING about the politicians they ended up voting for, you will look back at these days fondly in your "golden years" as you sit with your grandchildren and tell them how at one time there was freedom in America, and what it was like to be free. And then you can explain to them what you were doing when freedom was slowly taken away for your own good. And then after you suddenly disappear because you outlived your usefulness in the "complete lives" system, they might start to understand when they receive their next case of Soylent Green crackers. To all the Obama zombies out there, be careful for what you wish for, you just might get it.
  • 3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this comment
    veritas Sun Aug 01, 2010 04:13 pm PDT Report Abuse
    November 2, 2010....that's what we are all looking forward to. Everybody I know, including Democrats, is voting straight Republican this time. We need real change to have hope.
  • 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    واحد العظمى Sun Aug 01, 2010 04:02 pm PDT Report Abuse
    Weren't beholden to lobbyists.

    Grammar error.
  • 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    واحد العظمى Sun Aug 01, 2010 04:01 pm PDT Report Abuse
    The recession isn't deeper than they thought.
    The problem is they don't think.

    Reality is a lot more real than they realized.
    They are completely out of touch with reality.
    If they actually took the time to add up costs vs tax revenue, they would have understood that they can't afford these social programs that are being forced upon the American people.
    Taxes incentives need to be offered to bring jobs back here.
    Maybe if the politicians were beholded to lobbyists and foreign interests, more people would have jobs.
    Up and coming higher taxes will force businesses to lay off more people.
    Unless your a government worker or are on some sort of welfare (social) program get ready for a bumpy road ahead.
    Who ever voted for these jokers should hang your head in shame. My conscience in clear. The only way you can make up for it, is to vote these liberal progressive, communist, socialist, or whatever you want to label them as out of office.
    We need conservative values back.
    Also, we need less favoritism of people strictly because they can be classified as a minority and fit a quota. How about the best person for the job.
  • 3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    pedro Sun Aug 01, 2010 03:01 pm PDT Report Abuse
    The reason why illegals can work for lower wages is because they do not pay income tax, receive free food stamps , and go to the hospital emergency room when they are ill or having a baby. I wonder if all you people out there could suggest who they think would make a great president.
  • 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    unbelievable Sun Aug 01, 2010 03:00 pm PDT Report Abuse
    "recession deeper than previously thought", this is from the same bozos that think they make health care better, these are the same people that will also be in charge at the death panel centers...
  • 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    me Sun Aug 01, 2010 02:31 pm PDT Report Abuse
    Nobody could have seen this coming .
  • 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    Boomer Sun Aug 01, 2010 12:04 pm PDT Report Abuse
    The only reason they're saying is it's worse than thought is because they know they can't LIE about it anymore. They also know all their Stimulus Crap was WASTED MONEY we have to pay for.

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