According to the US Commerce Department the US “economy grew at a 4.9 percent pace in the third quarter, the fastest in four years.”

Matt at WMD was quick to jump on it crediting Bush and his tax cuts for the one piece of positive economic news to come out in a long time.

Problem is: if you read the whole article you’ll get a totally different picture.

The third quarter surge in the economy happened “before the full impact of the worsening housing recession and turmoil in credit markets took hold.”

According to economists, the odd of recession are “too close for comfort” and growth in the fourth quarter is predicted to be less than 1 percent.

The Labor Department said initial jobless claims increase by 23,000- the most since February and the “number of people staying on benefit rolls was the highest in almost two years.”

And “homebuilding will drop at a 22 percent annual pace this quarter, the most since the last three months of 1981”

I’m certain not all of this is Bush and his tax cuts’ fault – but if you want to blame him for the good you’ll need to give him credit for the good news- you need to blame him for the bad news too.

 
  • Also worth mentioning:

    “The White House lowered its official forecast for economic growth to 2.7 pct for 2008 from 3.1 pct predicted six months ago. “

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