The Economy Doesn't Have Liftoff
The Wall Street Journal is reporting that the US economy grew at an annual rate of 2% in the 3d quarter. If recovery from recession were complete -if we are well into a phase of economic expansion - then 2% annual growth would be acceptable if unexciting news. But for an economy emerging from the worst crisis since World War II, 2% is an ominous failure.
The US economy grew at almost 10% in 1934, the year of recovery from the nadir of the Great Depression.
The US economy grew at almost 7% in 1984, after the economic troubles of the late 1970s and early 1980s.
That's what liftoff looks like. This looks like ... fizzle.
Update: The FT today has the unfortunate headline, "US Recovery Gathers Pace" - alongside a graph showing that 3d quarter growth was half first quarter growth.
Posted at 10:43am