4Q GDP Revised Upward

In the 11 quarters since the Bush tax cuts were passed in 2003, the U.S. economy has grown swiftly, despite numerous headwinds, including high oil prices, a natural disaster of unprecedented scale, ongoing global unrest, and the specter of terrorism.

As I noted recently, GDP has grown roughly 10% in the last 2.5 years, driven largely by a surge in private sector investment, an effect attributable to a tax scheme less punitive to wealth creation.

The one hiccup in this growth occurred in the fourth quarter of 2005 (the nominal GDP growth rates for the 11 quarters were 3.7%, 7.2%, 3.6%, 4.3%, 3.5%, 4.0%, 3.3%, 3.8%, 3.3%, 4.1%, and 1.1%).  Even so, newly installed Fed chief Ben Bernanke recently predicted in no uncertain terms that the U.S. economy will rebound sharply in the first quarter of 2006.

But this morning, a new report from the Commerce Department revised that 1.1% figure upward to 1.6%, far less anemic than previously thought.

It's still the slowest growth in three years, but then again, the quarter was up against some tough competition.  And at 1.6%, rumors of the expansion's death clearly were greatly exaggerated.  What's more, with predictions for first quarter growth coming in at 4.5 - 5.5%, we're poised to notch up the strongest growth in 2.5 years this quarter.

Yap... that's a fine economy, that is.

Let's check in with the media headlines and see how they're reporting this exciting breaking news.

• Economy Grows at Mediocre Pace
• U.S. Growth Slowest in 3 Years

Humbug.

Previously:
America's Secret Prosperity
And Tax Cuts Said, "Let There Be Growth."
Pay Attention, America!
2006 Economic Report of the President
Speaking of Taxes
Reason #411 Why Congress Must Make the Tax Cuts Permanent
Liveblogging the State of the Union
Oh Tax Cuts, Is There Anything You Can't Do?
Tax Cuts To the Rescue
Yet More Good Economic News
The Facts Are Not Enough
I Believe I Can Buy

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