U.S. Economy Sheds Jobs As Costs Go Up

Slowdown In Spending Fuels Recession Talk; Labor Department Reports Rise In Jobless Claims

(AP)  Soaring prices for food, gas and other everyday products pushed up U.S. consumer spending to a faster pace than expected in March.

The Commerce Department reported Thursday that consumer spending was up 0.4 percent in March, double the increase that economists had forecast.

However, once inflation was removed, spending edged up a much slower 0.1 percent. That represented the fourth straight lackluster performance as consumers have been battered by record gasoline prices, a deep slump in housing and rising job layoffs.

In other economic news, the Labor Department reported that claims for unemployment benefits rose by 35,000 to 380,000. That was a much bigger increase than the 18,000 than private economists had expected and highlighted the strains that the weak economy is putting on the labor market.

The report on jobless claims came a day ahead of a report on unemployment for April. Economists expect that report will show that the unemployment rate edged up to 5.2 percent, from 5.1 percent in March. The economy is expected to lose 70,000 jobs, for the fourth straight month of job losses.

Consumer spending is being carefully watched out of concerns that too big of a slowdown will push the country into a recession, since two-thirds of economic activity comes from consumers.

The government reported Wednesday that the overall economy, as measured by the gross domestic product, eked out a tiny 0.6 percent growth rate in the first three months of this year as consumer spending slowed to the weakest pace since the second quarter of 2001, when the country was slogging through the last recession.

Despite the slightly positive GDP performance, many economists believe that the economy has fallen into a recession and it will be reflected by a negative GDP figure in the current April-June quarter.

The Federal Reserve on Wednesday cut a key interest rate for the seventh time in the past eight months, although it signaled the quarter-point move may be the last for awhile.

The Fed, worried about rising inflation pressures, is hoping that its previous moves, combined with 130 million rebate payments that started going out this week, will be enough to keep the country from tumbling into a deep recession.

On the inflation front, a price gauge tied to consumer spending rose by 0.3 percent in March, triple the 0.1 percent rise in February. Much of that jump reflected higher food and energy costs. Core inflation, which excludes those categories, rose by 0.2 percent in March and is up 2.1 percent over the past 12 months, higher than the Fed's 1 percent to 2 percent comfort zone.

Personal incomes rose by 0.3 percent in March, slightly slower than the 0.5 percent rise in February.

The personal savings rate, savings as a percent of after-tax income, slipped to 0.2 percent in March from 0.4 percent in February.

[omega39-2009]

The report on jobless claims came a day ahead of a report on unemployment for April. Economists expect that report will show that the unemployment rate edged up to 5.2 percent, from 5.1 percent in March. The economy is expected to lose 70,000 jobs, for the fourth straight month of job losses.

The good news is we have long since lost all our well paying jobs to India and China. The jobs we are shedding now can easily be replaced when the next McDonalds or Starbucks opens.

[underdogus]

UNCLE SAM WANTS YOU..enlist join the ARMY

[longtree-2009]

Jobs lost out of how many still working? Population of US is about 300 million so job loss of 70K on top of 232K the first quarter don''t seem that startling. News reports Feds and States are hiring except for a few states. MADE IN CHINA gets to me these days.

[mcvet]

Jobs lost out of how many still working? Population of US is about 300 million so job loss of 70K on top of 232K the first quarter don''''t seem that startling. News reports Feds and States are hiring except for a few states. MADE IN CHINA gets to me these days.


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Posted by longtree at 11:05 AM : May 01, 2008
+ report abuse

You''ve consumned WAY to much Boot Polish there Sparky!! WAY to much! Sieg Heil Bush

[antoniof123]

Hey the neo cons are saying it is everyones fault.

They can no longer get away with blamming the Democarts so now they still don''t want to take the blame for this mess so they say we are all at fault.

Forget it you lose the storm was coming through out all of 2007 and yet you refused to bow to you masters you know them the American people who vote. Now you are heading into the last leg. Anyone want to bet that in a few months the neo con party starts to move away from the village idiot or at least try to.

It is going to be a blood bath in the Senate.

[singingrick]

Looks like the so-called conservative policies of borrow, spend, outsource, and invade haven''t been very good for America.


Do we really want to elect John McSame?

[naucoming4u]

This is the REAL MISSION ACCOMPLISHED for the Neo-Cons of America.

Drain the treasury, siphon the higher paying jobs to third-world countries, and then have illegal immigrants come in to fill the remaining lower paying jobs. All the while devaluing the U.S. dollar to spike the oil prices for the purpose of grotesquely high oil company profits. AND, depress the economy to the point where the ultimate "saving grace" will be to combine economic and political forces with Canada and Mexico for the sake of border-free commerce... (hence the North American Union).

And VOILA! "Mission Accomplished" for the Neo-Con elites.

[andylance1]

First, the mad-scientists of the food industry came up with High Fructose Corn Syrup to poison your Coke, Pepsi, Mt.Dew and practically everything else you eat or drink. High Fructose Corn Syrup causes diabesity - a combination of obesity and diabetes.

Next, they come up with ethanol factories and use up one quarter of the farm fields just to plant corn for fuel.

Now almost all farmers are planting corn instead of wheat. Now your morning do-nuts, bagels and French toast all will double in price.

The food industry is *** you and me.

We are in this food crisis because of farm subsidies, ethanol factories and Wall Street commodity speculators.

There are a million ways to save money.... that is not the point. There is a national election going on.... with a hope we can find a candidate that is against ethanol factories and farm subsidies.

In case you missed it this morning, John McCain was on Morning Joe @ MSNBC. He announced that he is opposed to ethanol factories.

[randynason]

What was it- a mere four months ago that Bush said the economy was robust and doing well? No one would dare say the "R" word and now the Feds are suggesting the possibility. I think that it goes further than that and we could acutually be seeing the beginning of the "D" word. This goes a lot further and is far more worse than anyone is letting on about.

[missingamerica]

"Personal incomes rose by 0.3 percent in March"...

uh huh...if you average what the people in the top quintile of America''s income earners got across all of the rest of America.

The top quintile? You know - that 20 percent who think Bush is doing a fine job, because they''re getting richer at the fastest pace since the times of the robber barons...

[mexinvasion]

Its the beginning of the end, folks. Enjoy what time we have left before we all starve. A great nation is being mismanaged into a third world country. In a decade our land will be either Mexican or Chinese.

[underdogus]

Mexican or Chinese.
Posted by MexInvasion ..good I love mexican food & Chinese food he,he

[awbker]

We will be a third world country they way we are going. We have become a laughing stock to other countries. "ha the mighty USA can they save themselves" So many powerful countries have lent us money, what happens if they call thier loans?

[mediapreachr]

Posted by andylance1 at 12:32 PM : May 01, 2008
There''s always plan B:
-food strategic reserves-we get to eat Gore.He''s nice and plump.
-eat the commodity traders-sort the crackheads from the fatties first.

[mcv57]

What jobs, oh you mean the ones that offer part-time employment with no benefits and long hours. Some companies like Firestone hire part-time then give their new employees full-time hours.

[the74blaster]

choices to be made and paying the price for choices made earlier in life

Posted by jamesm12341,

That is correct! It is going to be fun walking into a Walmart and see all the new greeters...especially the out of work members of congress who supported Bush.

[gce65]

I know what I''m spending my $600 Bush rebate on...

CBS: Not covering this? The WaPost is.

Study Finds No Cancer-Marijuana Connection
By Marc Kaufman
Washington Post Staff Writer
Friday, May 26, 2006; Page A03

The largest study of its kind has unexpectedly concluded that smoking marijuana, even regularly and heavily, does not lead to lung cancer.

The new findings "were against our expectations," said Donald Tashkin of the University of California at Los Angeles, a pulmonologist who has studied marijuana for 30 years.

"We hypothesized that there would be a positive association between marijuana use and lung cancer, and that the association would be more positive with heavier use," he said. "What we found instead was no association at all, and even a suggestion of some protective effect."

Federal health and drug enforcement officials have widely used Tashkin''s previous work on marijuana to make the case that the drug is dangerous. Tashkin said that while he still believes marijuana is potentially harmful, its cancer-causing effects appear to be of less concern than previously thought.

Earlier work established that marijuana does contain cancer-causing chemicals as potentially harmful as those in tobacco, he said. However, marijuana also contains the chemical THC, which he said may kill aging cells and keep them from becoming cancerous.

MORE ON WA POST WEBSITE
Read it quick! Before the Bush Admin rewrites the reports with non-scientists and changes its conclusions!

[bm6005]

choices to be made and paying the price for choices made earlier in life
Posted by jamesm12341,

What is it with you? This seems to be the only thread that runs thru your tiny little mind! You seem to puke up this one subject continuously as if this issue leads to all troubles in the world. Really, tell the truth now, how far did you go in grade school?

[ubrew12]

jamesm12341 is one of those puritans that like offering the rest of us ''guilt without s*x''

[ranger1948]

I wrote my senators this morning. I said that Americans are tired of waiting for change. Bush should be imopeached and tried fo war crimes. Congress should address the problems here at home. I said if i did not se action by them by November i would be looking for new blood to vote into office. I suggest everyone write their senators and tell them how you feel. IF they receiive enough responses from the the public maybe they will finally do something.

[forthepeopl1]

AMERICANS NEEDS TO STRIKE........NO ONE WORKING FOR A WEEK OR SO WOULD TELL THE GOVERNMENT ONE THING, THEY CANT DO ANYTHING WITHOUT US AMERICANS WORKING FOR THEM AS SLAVES, SO IF EVERYONE WOULD NOT WORK FOR A COUPLE OF WEEKS, DONT BUY ANYTHING, DO NOTHING FOR A WEEK SEE HOW FAST THE GOVERNMENT STARTS LISTEN TO US.........COME ON AMERICANS WHAT WAITING FOR BUSH/CHENEY TO DECARE A STATE OF EMERGENCY BEFOR YOU WAKE-UP

[jt_lancer]

Anyone looking to the government to ''change'' things for the better is barking up the wrong tree.

Government is the problem, not the solution.

[hypnotoad72]

It''s a vicious circle, self-repeating. When does the circle take a detour?

[algoresarse]

ahhh this is the time when you say " I wish i studied harder..I wish I went to college.."

well at any rate, if we can only get those who are so anti-war...to just put in a little more sacrifice and device a plan to conserve oil..than how to "raise awarness"

if we can only contain this out of control LIBERAL backed unions from really tightening that death grip..

[jt_lancer]

The three remaining candidates for President are economic illiterates, much like the current office holder.

They don''t have a clue how the market economy works.

It is no surprise that their ''answers'' to government-created problems are more government intervention, regulation, taxation, spending, etc.