So Much For The Recession: Preliminary Numbers Show GDP Growth In Second Quarter Of 2008
From the Bureau of Economic Analysis:
Real gross domestic product—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 1.9 percent in the second quarter of 2008 (that is, from the first quarter to the second quarter), according to advance estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.9 percent.
Here’s a table showing GDP growth from the beginning of 2007:
Note that we’ve only seen one quarter of negative growth over the last year. An economic recession is defined by economists as being two consecutive quarters of negative GDP growth. We haven’t seen that, and it how appears as though the economy is lifting itself out of the down cycle it was in.
So what does this mean? For one, it means things aren’t as bad as the politicians who are trying to get elected are telling you it is. For another, it also means that we need some pro-growth policies in this country. That means reducing the burden of government on the private sector.
The one-time economic stimulus checks undoubtedly sparked some level of economic activity, but for lasting economic growth we need to leave money in the pockets of citizens on a permanent basis. That means tax cuts.
Period.
