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Home Publications Blogs Beat the Press Second Quarter GDP: Strong Growth Ain't What It Used to Be

Second Quarter GDP: Strong Growth Ain't What It Used to Be

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Friday, 30 August 2013 04:46

The Commerce Department release of revised data showing that GDP grew by more than originally reported in the second quarter was generally reported as very positive news. This is striking since the growth rate was only 2.5 percent. (One fifth of this growth was due to more rapid inventory accumulation.)

Most economists estimate the economy's trend growth rate as 2.2 percent to 2.4 percent. The Congressional Budget Office estimates that the economy is currently operating at almost 6 percentage points below its potential. This means that at the second quarter growth rate it will take between 20 and 60 years to get back to potential GDP.

Comments (3)Add Comment
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written by sail2deepblue, August 30, 2013 8:03

RE: "at the second quarter growth rate it will take between 20 and 60 years to get back to potential GDP."

Gee--talk about "in the long run we are all dead . . ."
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written by D12345, August 31, 2013 7:04
Great, indispensable column. One last time—What you do is great. But essentially this column is exclusively reactive. If the Times or Post print something, you take it apart. Great. But what if they ignore an issue entirely? What if they don't inform the public at all?

TPP is chugging along and nobody in the mainstream is saying a word. That includes Krugman, who seems to be unable to launch any significant criticism of Obama and his administration.

It is probably a lost cause. They have the power, they have the votes. But we need attention drawn to this!

Thanks for your great wor, Have a good weekend!
If you ever comment anywhere, D12345, link to this blog...
written by JaaaaayCeeeee, August 31, 2013 8:12

If you ever comment anywhere, D12345, link to posts here, discuss and cite Dean Baker's points, refer people here, and know that, even without a New York Times or other mainstream media behind it (like Exonomix blog has), this already is one of the top rated blogs, so keep it up.

Dean Baker, along with Marc Thoma, Brad DeLong, Mike Konzal, Joe Stiglitz and others they cite, part of what Krugman calls the highest quality economics discussion, ever, and they find time that they don't have, to write for civic minded (reality based) voters.

I'm grateful that Dean Baker keeps me from shooting my television, since I can find better reporting in their economics and policy reporting, and he keeps me from shooting my screen, when I try to separate out the news from the mis-information online.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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