NCPA - National Center for Policy Analysis


October 15, 2004

America is blessed with a high-performance economy, producing above-average growth and below-average inflation, despite dour reports produced by the media or Democrats, says economist Larry Kudlow.

For instance, during the 10 recovery quarters since the end of the 2001 recession, real gross domestic product (GDP) has averaged 3.4 percent growth, in line with the average post-World War II expansion rate. Moreover, since the last of the Bush tax cuts were passed in 2003, real economic growth has increased by 4.8 percent.

And over the past year, numerous other economic indicators show signs of a strong American economy, says Kudlow:

  • Household wealth is up 11.1 percent, hitting a record high of $45.9 trillion, and inflation-adjusted consumer spending is up 3.6 percent.
  • Interest rates are at 45-year lows (short term rates are below 2 percent) and home ownership has hit a record 69.2 percent.
  • After-tax corporate profits are up 19.5 percent, with capital-goods investment by businesses increasing by 13.9 percent.

Though net payroll jobs have fallen by 585,000 under President Bush, the household survey shows that 1.69 million more are employed today than when he first took office. This influx of new job entrants has lowered the unemployment rate to 5.4 percent, says Kudlow.

Source: Larry Kudlow, "Solid Jobs, Solid GDP,", October 11, 2004.


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