During the first three years after the 1981-82 recession, the economy grew above 3% in 11 of 12 quarters and at greater than 5% in 7 of 12. Eleven quarters into this recovery, the economy has managed 3% or better only four times and has yet to reach 4%. But America's underlying fundamentals look increasingly strong. A gridlocked Congress and an inflation-averse Federal Reserve may try to gum up the works. But this morning's disappointing number is by no means a reason for despair.Trump's right that stronger economic growth cures countless ills -- unemployment, deficits, debt, even Social Security and Medicare's woes. There would be less social and cultural anxiety as well. I plan to vote for the GDP president. Who will he be?
Friday, April 27, 2012
Who Will Be The GDP President?
Republicans are hammering President Obama over the economy's anemic 2.2% annual growth rate, not that they necessarily have any better ideas. Donald Trump advocates more domestic energy production (although drilling is through the roof under Obama) and punishing China with a 25% trade tariff, even though protectionism causes depressions. The Economist says steady in the buggy: