Posts Tagged ‘imports’

New GDP Figures Turn Decline Upside-Down

Friday, October 30th, 2009

Could the Great Recession be over because the GDP did not shrink for one quarter?

  • The gross domestic product of the United States grew at a rate of +3.5% in the third quarter of 2009, which is the same amount as the average growth rate of the last 80 years.
  • Although jobs are still sparse and the housing market is still in bad shape, government programs helped encourage consumer spending on all sorts of goods.
  • There is still a risk of slowed growth or a dip in GDP because the third quarter’s growth can be attributed in part to strong stimulus packages, which will expire in coming months.

Facts & Figures

  • The stimulus packages that encouraged growth in GDP include the $787 billion package approved in the winter of 2008-2009 and the Cash for Clunkers program.
  • Jobless rate reached 9.8% in September 2009, despite GDP growth.
  • American exports (goods being sold outside the country) grew at an annual rate of 14.7% and imports (goods coming in from abroad) grew at a 16.4% annual rate.

Best Quote

“The big-picture perspective is that things have improved. The question is, how sustainable is this growth going forward?” – Jan Hatzius, Chief U.S. Economist at Goldman Sachs

A Tariff is…

Friday, August 21st, 2009

A tariff is a tax placed on imports.

A Duty is…

Tuesday, August 18th, 2009

A duty is a tax levied on products that are imported or exported from a different country. If a manufacturer wants to ship his product to another country and sell it there, he may have to pay a duty for sending it out of the first country and another duty for sending it into the second, depending on the tax laws in place in each country.

An Import Tax is…

Monday, August 3rd, 2009

An import tax is a charge added to the price of a good when it’s brought from one country into another. Reasons for the tax include: profit for the importing government and protection of its own home companies that produce that same good. For example, the U.S. has a high import tax on sugar in order to protect the U.S. sugar industry from cheaper foreign imports.