From an e-mail just sent out by the labor-backed Economic Policy Institute
When slightly positive is as bad as negative
EPI’s take on the latest GDP numbers, released Wednesday morning by the Commerce Department, was that the miniscule 0.6% growth reported is not nearly enough to prevent rising unemployment. Economist L. Josh Bivens noted in an early response that “There’s nothing magical about staying above zero. In fact, annual growth of less than 2.5% is a recipe for rising unemployment. We’re already seeing this in three consecutive months of job loss, and considering the GDP numbers released this morning, we’ll surely see more in the coming months.”
Very clever attempt at changing the terms of political debate. There has been so much screaming about slipping into recession, and then reality intruded. So now the screaming must be about, well, not slipping into recession.
And for the record, yes, 2.5 percent annual growth would be a lot better than 0.6 percent growth.
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