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Wednesday, December 21, 2005
GDP Growth At 4.1 Percent
The Commerce Department reported today the economy grew by 4.1 percent in the fourth quarter, despite surging energy prices. Business growth was slightly lower than the government had previously estimated it would be. This growth was attributed to high consumer demand, especially for cars, as well as business investment.
Despite this economic upswing, it would be misleading to ignore current economic weaknesses, and instead point to GOP tax cutting as the reason for economic success. Yes, GDP growth has been solid over the last few years, but as Gene Sperling discusses in this article on ThinkProgress.org, the growth does not necessarily mean all is well with the economy. In terms of employment growth, for example, our current economic recovery is the weakest ever recorded. Also, the poverty rate has risen each year Bush has been in office. 5.4 million people have fallen into poverty since 2000, making this the only recovery on record where poverty has increased from the second year to the third year after the recession. Finally, the personal savings rate has has hit a rock bottom -2.18 percent (recorded in August). This level of negative savings has not been seen since the Great Depression. So while GDP is on the rise, it is important not to ignore the other economic factors which measure just how well the average person in society is faring.
Economy Grows at Fastest Pace in 1 1/2 years
Posted by Becky Lewis
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