2006 Economic Report of the President

Get your copy, hot off the Council of Economic Advisers presses.

Some "key points" from the year in review/look ahead section:

- Real GDP grew strongly during 2005. Most components of demand that accounted for growth in 2004 continued to do so in 2005: consumer spending, business investment in equipment and software, and exports.

- Labor markets continued to strengthen. The unemployment rate continued to decline, and employers created another 2 million jobs.

- Inflation rose substantially at mid-year, but came down by year-end reflecting the movement of energy prices. In contrast, inflation in the core consumer price index (CPI) (which excludes food and energy prices) has remained in the moderate 2-percent range, and inflation expectations for the period beyond a one-year horizon remain moderate and stable.

- The Administration’s forecast calls for the economic expansion to continue in 2006, with real GDP growth close to its post-World War II average rate and the unemployment rate stable at about its current level. This is expected to continue in subsequent years.

Any guesses on how much media bandwidth this very upbeat report will see?  Just Google It - it's thin and cynical.

Economically speaking, it's time for us all to quit biting our fingernails.  It's 72 and sunny on this bright American morning and Goldilocks is joining us for breakfast.  Even better, Mr. Laffer is picking up the tab.