November 11, 2005

What he said

I've ranted on many occassions about the Katie Couric/Matt Lauer/ Tom Brokaw/Dan Rather/CBS/NBC/ABC/CNN/NY Times cabal who keep moaning about the horrid state of the US economy, conveniently ignoring all of the indicators of an amazing, continued expansion. Bizzy Blog adds the proper context:

QUESTION: When is this economy going to some respect?

The economy’s 3.8% third-quarter growth (subject to revision in the coming months) was remarkable, given the storms that occurred during almost the entire final month of the quarter:

Economists had forecast GDP would advance at a 3.6% rate in the July-to-September quarter. The economy has now expanded faster than 3% for 10 straight quarters.

So when was the last time the economy expanded faster than 3% for 10 straight quarters?

It didn’t happen during the 1990s (the longest streak was eight).

It last happened during the 13 quarters from 1Q 1983 through 1Q 1986. Not coincidentally, a president who believed in lowering taxes to stimulate economic growth was in charge the last time it happened.

So despite being at war, despite devastating storms, and despite legislative and regulatory drags on the economy like Sarbanes-Oxley, this has been most consistently growing economy in almost 20 years.

Not only that, the US economy has NEVER had a streak of more than 7 quarters of 3.0% or greater annualized growth at any other time in the 58 years that quarterly GDP statistics have been kept! (besides the ones already mentioned: i.e., the current streak of 10, the 1990s streak of 8, and the 1980s streak of 13–Added Nov. 3 for clarity)

Posted by Physics Geek at November 11, 2005 09:16 AM | TrackBack StumbleUpon Toolbar Stumble It!

Belated thanks for noticing.

Posted by: Tom Blumer at November 12, 2005 06:29 PM