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Economy

Economic growth so strong, Republicans are literally speechless

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In recent years, as job growth has soared in the United States and the unemployment rate has dropped to levels unseen in more than 50 years, Republican leaders on Capitol Hill have responded to the news by ignoring the data. Month after month, the economy adds hundreds of thousands of jobs, and I eagerly await the reactions from GOP congressional leaders.

Invariably, the party finds itself literally at a loss for words.

It was against this backdrop that the Commerce Department released new data roughly 24 hours ago, pointing to robust economic growth in the United States over the summer (July through September). In fact, the gross domestic product reached 4.9% for the quarter — a level of growth unseen during Donald Trump’s first three years in office — exceeding expectations.

It was, by any fair measure, “stellar” news, made better when combined with recent data pointing to low unemployment and inflation rates that are dropping.

Naturally, I was curious how Republicans would respond to the news. A few options came to mind.

Maybe leading GOP officials would make the case that the robust economic recovery is nice, but President Joe Biden doesn’t deserve any credit. Perhaps they’d argue that it’s too soon to applaud good news since there’s still plenty of economic work to do. Maybe they’d argue that the United States economy is a massive beast, and it’s unrealistic to think a White House agenda is uniquely responsible for periodic shifts.

But as it turns out, Republicans went with an entirely different approach: They simply ignored the good news, as if it didn’t happen.

Senate Minority Leader Mitch McConnell didn’t bother to issue any kind of statement, and new House Speaker Mike Johnson was similarly silent — except to tell Fox News’ Sean Hannity that he believes the U.S. economy “is in the tank,” overwhelming evidence to the contrary notwithstanding.

The Republican National Committee sort of acknowledged the GDP report — it issued a statement arguing that “Bidenomics is a failure,” which appeared to be odds with the news Americans had just received — though it made no mention of the actual data.

There’s no great mystery here. Party leaders have almost certainly concluded that if they were to comment on the good news, more Americans might hear about it — and that’s the last thing the GOP wants. There’s political utility in simply looking the other way.

But the Republicans’ silence doesn’t change the fact that the latest economic data is fantastic.

This post updates our related earlier coverage.

 

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S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 150 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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