The Bush Economic Boom
The folks over at AnkleBitingPundits point out that the last time the economy was nearly this strong was when Bill Clinton was in office — and the press trumpeted it night and day. Now, the economic news is just as good, if not better, and we rarely hear a thing about it. Some of it is Bush’s fault — for example, he should be emphasizing in every speech he makes that minority home ownership is at an all-time high, despite warnings by folks like Jesse Jackson and Harry Belafonte that blacks are just one step away from being forced back into slavery. Here are the high points of the Economic Report of the President, which can be found in its entirety here.
- Real GDP grew strongly during 2005. Most components of demand that accounted for growth in 2004—consumer spending, business investment in equipment and software, and exports—continued to do so in 2005.
- Labor markets continued to strengthen. Employers created 2 million new jobs in 2005, and the unemployment rate dropped to 4.9 percent by year-end.
- Productivity growth remained well above its historical average in 2005.
- Inflation rose substantially at mid-year, but came down by year-end as it reflected the movement of energy prices. In contrast, inflation in the core consumer price index (CPI) (which excludes food and energy prices) has remained in the moderate 2-percent range.
- The Administration’s forecast, consistent with consensus private forecasts, shows the economic expansion continuing for the foreseeable future.
