Well the, Obama people must be disappointed. They had predicted that a permanent era of slow growth was at hand.
But alas, the fault of the meager growth of the Obama years wasn’t America’s. It was OBAMA’S.
Trump is closing in on two years into his presidency. Obama can’t even possibly claim at this point that he deserves the credit. In fact, the economy began to improve the day Trump was elected, because businesses understood that a change was finally at hand.
From the Wall Street Journal:
Strong consumer and government spending powered economic growth in the third quarter, although a warning sign about the outlook emerged in the form of weak business investment.
Gross domestic product—the value of all goods and services produced in the U.S.—grew at a seasonally and inflation-adjusted annual rate of 3.5% from July through September, the Commerce Department said Friday. That was slightly higher than the 3.4% reading economists surveyed by The Wall Street Journal had expected and followed strong growth in the second quarter.
Consumer spending, which accounts for more than two-thirds of total economic output, rose at a 4.0% annual rate in the third quarter, the strongest rate of growth in nearly four years. A low unemployment rate, steady job and wage growth and the late-2017 tax overhaul encouraged spending by consumers.
Adding to the growth burst, federal government expenditures were up at a 3.3% annual rate in the third quarter, with defense spending rising at an annual rate of 4.6%. State and local government spending also rose at a 3.2% annual rate, a burst that is helping to power overall economic activity.
The Wall Street Journal, which I regard as a rare honest broker among MSM media outlets, nevertheless sees cause for concern in the future.
However, some analysts see a slowdown looming.
“We see five reasons for more modest growth: a fading fiscal stimulus boost; rising inflation; tightening monetary policy; increasing protectionism and slowing global activity,” Gregory Daco, an economist at Oxford Economics, said in a note to clients.
We’ll see. Of course, everyone hopes the economy will continue expanding robustly. Right, lberals?