October 27, 2006
STATEMENT OF ROBERT GREENSTEIN,
EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES, ON THE COMMERCE DEPARTMENT’S NEW GDP FIGURES
Today's announcement of a marked slowdown in recent growth follows upon Labor Department figures issued earlier this month showing that job growth has slowed significantly in 2006. These figures contribute to the mounting evidence that the economy has performed relatively poorly during the current recovery. The economy always recovers after a recession, regardless of the policies pursued. But this recovery has been unusual in that economic growth and investment growth are both below the average for recoveries since World War II. And job growth and wage and salary growth are far below average, with the income of the typical non-elderly household failing even to keep pace with inflation.