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Quarter for the first time since 2009. very small, 0.1%, but still all surprise, yikes, eek, because nobody was expecting it. analysts thought that the national gdp was going to grow, but it shrunk instead. maybe the number will get changed, you never know. turns out the really interesting thing about today s terrifying shrinkage announcement is why it happened. this is defense spending over time. kind of random, in one quarter, defense spending goes up and down, all over the map. that doesn t say anything about defense policy, just a characteristic of how the pentagon spends. it happens in fits and starts for a bunch of different reasons. the defense spending chart is what economics geeks call lumpy. but when it gets lumpy, drops sharply, gdp goes down. the last big dip on the defense spending chart there, the really big dip there? that is last quarter, the one where we had the overall gr congres m to instr oh, this is s ....
Reasons. the defense spending chart is what economics geeks call lumpy. but when it gets lumpy, drops sharply, gdp goes down. the last big dip on the defense spending chart there, the really big dip there? that is last quarter, the one where we had the overall shrinkage. the only other big plunge in defense spending coincided with the unexpectedly bad economic quarter for the whole year. the other thing, i say this about policy, it is just about the scale of how much we spend on defense. we spend so much money on defense that when we stop spending all of a sudden the economy really feels it. defense spending jumps around a lot for a lot of different reasons. and when it jumps way down like it did last quarter, that is when we get the square economic growths alert like we did today. we ll be right back. you know my heart burns for you. ....
Analysts thought that the national gdp was going to grow, but it shrunk instead. maybe the number will get changed, you never know. turns out the really interesting thing about today s terrifying shrinkage announcement is why it happened. this is defense spending over time. kind of random, in one quarter, defense spending goes up and down, all over the map. that doesn t say anything about defense policy, just a characteristic of how the pentagon spends. it happens in fits and starts for a bunch of different reasons. the defense spending chart is what economics geeks call lumpy. but when it gets lumpy, drops sharply, gdp goes down. the last big dip on the defense spending chart there, the really big dip there? that is last quarter, the one ....