Say Anything Blog

Amongst all the good news about Saddam Hussein and Gaddafi, its important to remember that our economy, according to Newsday, is still booming:

The U.S. economy, propelled by tax cuts and low interest rates, roared ahead at an 8.2 percent annual rate in the third quarter, the best showing in nearly 20 years, while Americans' incomes and spending both showed healthy gains in November...

The Commerce Department report that the GDP grew at an 8.2 percent rate in the third quarter, propelled by a surge in consumer spending, was identical to the preliminary estimate made a month ago and represented the strongest growth since an 8.4 percent rate of increase in the fourth quarter of 1983.

In a separate report, the government said consumers were remaining active in the current quarter with consumer spending rising by 0.4 percent in November, the best showing since August, and incomes, helped by rising employment levels, posted an increase of 0.5 percent last month, the best gain since May.

Many analysts believe that GDP growth in the current quarter could well top 5 percent, representing the best back-to-back growth rates since the boom years of the 1990s.

The economy began the year growing at much slower rates of 2 percent in the first quarter and 3.1 percent in the second quarter before the jolt from a new round of tax cuts propelled consumer spending in the third quarter.

Growth has also been helped this year by the Federal Reserve's decision to keep a key interest rate at the lowest level in 45 years, providing strength to such interest rate-sensitive sectors as housing and auto sales.

Twice in this article the writer attributes the boom in the economy to tax cuts.

So much for said tax cuts only benefiting the rich.