Gross Domestic Product Shrinks by 3.8%

January 30, 2009 12:00:00 AM PST
There are more signs this midday that the U.S. recession is deepening: a new report finds the economy shrank by nearly four-percent at the end of 2008. That's not as bad as experts were predicting.It's a startling sign of just how weak the U.S. economy is: the gross domestic product dropped by 3.8 percent, the largest drop in 26 years, but still far less than economists predicted.

President Barack Obama used the G.D.P. numbers to once again urge congress for quick passage of his stimulus plan.

This week alone companies announced they were cutting nearly 100,000 jobs.

The president is still waiting on the senate to pass his $820-billion dollar economic stimulus bill, the house passed the plan earlier this week without a single Republican vote.

"We should be able to make an intelligent distinction between those things that actually stimulate and those things that are just good-sounding things that we might vote for if we had the money and we didn't have to borrow so much of it," said Sen. Lamar Alexander (R) Tennessee.

Thursday, President Obama took aim at bank executives who've taken tax payer dollars in the $700-billion dollar troubled asset relief program for their financial institutions, but paid themselves lavish yearend bonuses.

Friday President Barack Obama reversed executive orders signed by President Bush, expanding worker rights and he created a middle class task force that will try to create and save American jobs.

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