Chart of the Day: GDP Growth in Q1

Real GDP plummeted 4.8 percent in the first quarter:

This is a little surprising: business lockdowns only started at the tail end of the quarter and shouldn’t have had a huge effect. This suggests that the economy may have been heading for a slide even before it got hit by the coronavirus pandemic.

The slowdown hit everywhere. Both personal consumption and private investment were down. Durable goods were down. Services were down. Fixed investment was down. Both imports and exports of services were down.

Among consumption of goods, the biggest drops were in autos and clothing. Among services, the biggest drops were in food, recreation, and health care. Among investment, the biggest drop was in business equipment.

All of this together suggests that the economy was on the edge of recession already, and both consumption and investment then cratered in response to fear of the coronavirus even before it had a concrete effect on the economy. Next quarter should be even worse.

On the other hand: I’ll point out yet again that it doesn’t feel like a typical economic implosion, does it? A drop of this magnitude would normally be accompanied by a huge amount of economic fear, but this time everyone knows exactly why the drop occurred and what has to happen to stop it. In the meantime, everyone also knows that massive government assistance is either here or on the way soon. Our fear right now isn’t truly economic, it’s fear of the virus. This means we can still get out of this with only moderate damage if we handle the pandemic itself properly.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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