November 25, 2003

RAISE THE PIE HIGHER:

Q3 economic growth revised up to 8.2% rate (Reuters, 11/25/03)

Robust business and consumer spending powered the U.S. economy ahead even more than first thought in the third quarter, the government said Tuesday in a report that showed corporate profits growing at the fastest rate in more than a decade.

Gross domestic product, or GDP, shot up at an 8.2% annual rate, more than double second quarter's 3.3% gain and the strongest quarterly advance in 19-1/2 years.

A month ago, the Commerce Department said GDP advanced at a 7.2% rate. Its revision surpassed Wall Street economists' forecasts for a 7.8% gain.


Well, those who were skeptical about the economic were right that they were wrong. They were just spectacularly wrong themselves about which direction the error lay in.

Posted by Orrin Judd at November 25, 2003 12:50 PM
Comments

I wonder if Krugman's been put on suicide watch.

Posted by: RDB at November 25, 2003 1:15 PM

That stupid cowboy is overstimulating the economy. Every idiot knows that if you run big deficits and cut taxes, the economy will boom. But this is a hollow economy that will collapse on the middle-class once the President is reelected.

This is the most cynical ploy I've ever seen in all my years as a prestigious academic economist to subvert democracy and reward the big corporations who pull President Puppet's strings. This proves that everything I've been saying heretofore is understated -- I had no idea how truly ruthless this administration was.

Posted by: Paul Krugman at November 25, 2003 1:31 PM

True. Up to a point.

It's still a good idea to ignore the preliminary figures, though.

Posted by: Harry Eagar at November 25, 2003 1:34 PM

Better fire the steel advisor.

Posted by: oj at November 25, 2003 2:17 PM

And be careful when hiring an economics advisor.

Posted by: jim hamlen at November 25, 2003 2:52 PM

Harry,

Those are revised figures.

Paul,

Take four of the pink heart shaped pills and go to your "quiet" room. The doctor is on his way.

Posted by: RDB at November 25, 2003 4:02 PM

When the original figures came out, NPR consoled itself by noting GDP growth figures often get revised downward.

Ooops. Sucks to be them.

Posted by: Jeff Guinn at November 25, 2003 5:06 PM

Actually, economists knew the figures were sure to be revised up. The revision includes data from the last month of the quarter (Sept) that wasn't available when the advance release came out -- and Sept had had the strongest data of the quarter.

NPR was engaged in wishful thinking if they thought it might be revised down.

Posted by: pj at November 25, 2003 6:58 PM

David - You could write for the New York Times and National Review, and be equally well received both places. Get ready to audition when they replace Dowd.

Posted by: pj at November 25, 2003 8:43 PM

Thanks . . . I think.

Posted by: David Cohen at November 25, 2003 9:50 PM
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