The United States economy has seen its worst quarter in almost a century by contracting 32.9% in the second quarter on top of 5% in the first quarter.
That’s just about in line with estimates of a 40% contraction up to June, the worst of any developed country so far and far worse than Britain’s -25% for the first half.
In contrast China has seen growth of 3.2% in the second quarter and a contraction of only 6.8% in the first, with how they performed so much better to contract by only -4% in the first half remaining a very very big mystery.
“The decrease in real GDP reflected decreases in personal consumption expenditures (PCE), exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending that were partly offset by an increase in federal government spending. Imports, which are a subtraction in the calculation of GDP, decreased,” the Bureau of Economic Analysis said.
Meaning effectively all economic activity has plunged in the worst crash by far that current generations have ever experienced.
Gross Domestic Production (GDP) has now dropped to about $19 trillion, significantly down from $22 trillion, making it an overall drop of about 10%, near Great Depression levels.
Full economic activity however has not quite returned especially in places like Florida where bars remain closed.
Meaning the third quarter may also see a contraction, raising scrutiny of this lockdown policy which China appears to have barely imposed and which Sweden did not impose at all yet seems to have experienced hardly much difference.
Heightened scrutiny of our own government lies will now probably also increase with the daily data now admitted to be false.
All of those governors that were quick to impose mass house arrests while being extremely slow to lift them will now also need to answer to their crashing of the economy.
With all of this being the biggest governance failure in living memory as it appears to have achieved nothing except for crashing the economy except somehow the Chinese one seems to have not been affected at all even though it started there and even though they gave the house arrest ‘model’ that crashed our economies, but not theirs.