Setting the Record Straight on the U.S. Economy

Amidst the hand wringing over the ballooning budget deficit (with no less than Federal Reserve Board Chairman Alan Greenspan among the most notable critics), the Bush Administration would naturally like to put the best possible spin on its economic record. Your editors received an interesting "fact sheet" recently that reflects those efforts. Facts are facts, and while the following list conveniently leaves out the negatives, it nevertheless reminds us that the economy has not been as bad as the popular press (and many politicians) would have us believe. To wit:

• Since the beginning of 2001, non-farm productivity increased at a 3.9% annual rate—the fastest pace for the start of any administration since John F. Kennedy's.

• Since the beginning of 2001, real disposable personal income has risen at a 3.4% annual rate—more rapidly than the first 31 months of each of the last three presidencies (Reagan, Bush I and Clinton). Real disposable income growth in 2002 alone (5.24% measured fourth quarter to fourth quarter) was faster than in any year since 1984.

• More new homes were built in the first two years and nine months of the current Administration (4.874 million) than in the last three years of the previous Administration (4.655 million).

• More single family homes were sold in 2002 than in any other year on record and sales in 2003 are on track to reach a new all-time high.

• Over the past two years and eight months, auto sales averaged 16.8 million units per year, a faster pace than in any 32-month period in any other Administration.