Return to Transcripts main page
American Morning
The Revised GDP is Out Today.
Aired August 29, 2001 - 11:04 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: The economy, it's growing, but barely. The revised gross domestic product, or GDP, for spring shows the economy is limping along, a growth rate of 2/10 of a percent. That is the weakest performance since the end of the first Bush administration. we're talking 1993.
CNN financial correspondent Peter Viles is standing by in Washington, and he's going to explain the numbers for us once again. Peter?
PETER VILES, CNN FINANCIAL CORRESPONDENT: Well, if I had to grade it, I think I'd disagree with Daryn. It's not an A, it's not a B, it may not even be a C.
You can see the weakness in our economy if you look at gross domestic product, which is the number that came out, which tells everything that is in our economy. The biggest piece of it is you, the consumer, 68 percent.
The consumer is doing OK, maybe not straight up, but certainly not down, sort of going sideways. So, that's not problem.
The government, 18 percent. Some people might wish the government would shrink, that's not the problem. The government is hanging in there.
This is the problem: Business investment. Another 18 percent. Businesses are just not spending money. Now, the open question is: Does the weakness here spread to the consumer? And that's what would happen if we'd go into a recession.
This is a question that we just don't know about. Today's number though told us the economy is still growing, still hanging in there, Leon, but really at a really lame pace.
HARRIS: Well, let me ask you something, Peter, to kind of help us put it into perspective the talk we've been hearing the last few days about President Bush's tax cut and the affect that's supposed to have on the economy.
You are saying consumer spending is holding OK. Does that mean then that this tax cut that folks -- or the rebate, I should say -- that people are going to be getting in their mailboxes and they're spending it, is not really going to change that GDP figure much at all?
VILES: You know it's going to help. The question is: What is it going to help on top of? How weak is the economy beneath that tax cut? People are spending some of the rebate. There hasn't been a real gangbuster rush to the stores. Back-to-school looks really weak for the retailers, but it would be weaker without the tax cut. Leon.
HARRIS: Yes, OK. Good deal. Peter Viles standing by in Washington. We appreciate it. We'll talk with you later on.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: The economy, it's growing, but barely. The revised gross domestic product, or GDP, for spring shows the economy is limping along, a growth rate of 2/10 of a percent. That is the weakest performance since the end of the first Bush administration. we're talking 1993.
CNN financial correspondent Peter Viles is standing by in Washington, and he's going to explain the numbers for us once again. Peter?
PETER VILES, CNN FINANCIAL CORRESPONDENT: Well, if I had to grade it, I think I'd disagree with Daryn. It's not an A, it's not a B, it may not even be a C.
You can see the weakness in our economy if you look at gross domestic product, which is the number that came out, which tells everything that is in our economy. The biggest piece of it is you, the consumer, 68 percent.
The consumer is doing OK, maybe not straight up, but certainly not down, sort of going sideways. So, that's not problem.
The government, 18 percent. Some people might wish the government would shrink, that's not the problem. The government is hanging in there.
This is the problem: Business investment. Another 18 percent. Businesses are just not spending money. Now, the open question is: Does the weakness here spread to the consumer? And that's what would happen if we'd go into a recession.
This is a question that we just don't know about. Today's number though told us the economy is still growing, still hanging in there, Leon, but really at a really lame pace.
HARRIS: Well, let me ask you something, Peter, to kind of help us put it into perspective the talk we've been hearing the last few days about President Bush's tax cut and the affect that's supposed to have on the economy.
You are saying consumer spending is holding OK. Does that mean then that this tax cut that folks -- or the rebate, I should say -- that people are going to be getting in their mailboxes and they're spending it, is not really going to change that GDP figure much at all?
VILES: You know it's going to help. The question is: What is it going to help on top of? How weak is the economy beneath that tax cut? People are spending some of the rebate. There hasn't been a real gangbuster rush to the stores. Back-to-school looks really weak for the retailers, but it would be weaker without the tax cut. Leon.
HARRIS: Yes, OK. Good deal. Peter Viles standing by in Washington. We appreciate it. We'll talk with you later on.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
>
