GDP
The Note on the impact of the GDP numbers:
It’s not just the economic numbers, it’s boy oh boy look at the economic numbers.ABC News’ Ramona Schindleheim reports that this morning’s economic growth number — 7.2% in the third quarter, was the best showing for the Gross Domestic Product since the first quarter of 1984 and was above most estimates. The GDP got a three-pronged boost: spending by consumers, businesses and the government.
Schindleheim: Armed with child tax credit checks and a bit more money in their paychecks, consumers spent with abandon. Consumer spending grew at a 6.6% pace in July, August and September. (One economist estimated last week that consumers spent about two-thirds of the child tax credit checks and saved the rest.)
Business spending — largely in the form of computers and electronics — rose by 11.1%, the best increase since the start of 2000. Businesses actually spent less on structures.
Government spending rose as well. The shrinking U.S. trade deficit helped improve the GDP, as did lower inventories.
For the next three months leading up to the Iowa caucuses and the New Hampshire primary, and the State of the Union, and seasonal shopping, and Sunday talk show after Sunday talk show, the notion that “the Bush presidency=a failed economy” ain’t going to be the dominant storyline.
Sure, there are a lot of “buts” (jobs, income distribution, what fueled the growth, etc.), but, to quote economist James Carville’s favorite expression “if ‘ifs and buts’ were beers and nuts, we’d have a heck of a party.”
And The Note, as you know, almost always covers what “is,” as opposed to “what ought to be,” and what is is that this is a H-U-G-E political development.
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