Monday, December 29, 2008

Ed Gillespie on Bush:

Over at RealClearPolitics, he writes: (emp add)
Myths & Facts About the Real Bush Record

Myth 1: The last eight years were awful for most Americans economically and President Bush's deregulatory policies caused the current financial crisis.


President Bush's time in office is ending as it began, with our economy under stress. The recession President Bush inherited as he entered office ran through the attacks of September 11, 2001, but during the recovery that followed, and due in no small part to the tax relief President Bush worked with Congress to provide, this country experienced its longest run of uninterrupted job growth - 52 straight months, with 8.3 million jobs created.

This reflected six consecutive years of economic growth from the Fourth Quarter of 2001 until the Fourth Quarter of 2007. From 2000 to 2007, real GDP grew by more than 17 percent, a remarkable gain of nearly 2.1 trillion dollars. This growth was driven in part by increased labor productivity gains that have averaged 2.5 percent annually since 2001, a rate that exceeds the averages of the 1970s, '80s, and '90s. In the same period, real after-tax income per capita increased by more than 11 percent, and there was a 4.7 percent increase in the number of new businesses formed.
The gross numbers were good (GDP, labor productivity) but they were not shared. And per capita is an average, not a median figure.

Essentially, the rich got richer, but labor didn't get a slice of the productivity-gains pie.


More importantly, he might be comparing a trough in GDP to a peak, which is a well-known propaganda ploy. One should only compare two points that are in the same place in the business cycle.

By Anonymous Anonymous, at 12/30/2008 2:53 AM  

Essentially, the rich got richer, but labor didn't get a slice of the productivity-gains pie.

Labor's slice of the pie was in rapidly falling prices of goods and services. We're a country awash in dirt cheap consumer goods and cheap food. That's what the average person has gotten out of all of this.

By Anonymous Anonymous, at 12/30/2008 5:31 PM  

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