May 27, 2004

4.4% Annual GDP Growth (yawn.)

"If Bush gets elected, this recession will turn into another Great Depression," said a beloved relative of mine yesterday. I am glad I was out of earshot.

I might have spoiled the festive occasion (they bought birthday boy lunch at his favorite US Indian place) with little tidbits of news like: Economy Picks Up Pace in First Quarter:

WASHINGTON - The economy grew at a 4.4 percent annual rate in the first quarter of this year, slightly faster than previously thought and fresh evidence that the recovery possessed good momentum as it headed into the current quarter.

Maybe I watch too much Larry Kudlow on TV, but kids we are in a boom! How big? How long? Nobody knows -- but only the Democrats see depression (I love the casual assertion that we are in a recession after six, eight quarters of growth?)
Although consumers and the federal government did their part to support the economy in the first quarter, the better reading on GDP for the period in large part reflected stronger investment by businesses to build up inventories, a good sign that companies are more confident about the economy's prospects.

From April to June, the economy is expected to grow at a rate in the range of 4.5 percent to 5 percent, according to some analysts.

My economic heart screams!

Posted by jk at May 27, 2004 09:52 AM

I'm sure what thy beloved family member meant was that any sliver of growth that may or may not be happening now (you know that the very act of measuring it affects the outcome, you silly boy)... anyway, if there IS any growth then it is obviously not SUSTAINABLE growth. Even if by some miracle of Enron accounting the establishment big media manage to show growth through November, if Bush is re-elected the house of cards will finally fall. Yes, I'm sure that's what they meant. That's the donkey party line, after all.

Posted by: johngalt at May 27, 2004 02:12 PM

I hear you. Yet this is scarier, these are the least partisan of this beloved wing of the family. They really do think we are living in hard times: why so-and-so's cousin's brother-in-law's stepchild's best friend lost his job and he is having a tough time. These folks pay little attention to GDP, but they inflate anecdotal evidence of hardship.

I think this is happening in much of the country; people do not believe in this recovery.

Posted by: jk at May 27, 2004 02:26 PM
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