Economy Last Year Sputtered at End; Obama Recovery Remains Dead Last for Growth
The Bureau of Economic Analysis (BEA) released a report today saying that real GDP grew at annual rate of 2.2% during the fourth quarter of 2014, down 0.4 percentage point from the BEA’s first estimate on January 30th.
This is disappointing news. Last week, the Economic Report of the President touted that economic growth had accelerated to an average of 2.8% during 2013 and 2014. Today, Americans found out that growth was much slower—2.4% last year, only slightly above the 2.3% average growth rate over the Obama recovery.
The U.S. economy is firmly stuck in second gear, mired in the worst economic recovery in half a century. Without a real focus on growth, more middle class families will see their paychecks remain flat while millions of college graduates search fruitlessly for a decent job.
America needs a growth agenda—pro-growth tax reform, a right-sized government, balanced regulation, a sound dollar and more free trade. I will be discussing this growth agenda with Council of Economic Advisers Chairman Jason Furman when he testifies before the Joint Economic Committee at 2:30 p.m. on Wednesday, March 4.
The Obama recovery is still short $1.5 trillion in real GDP compared with the average of past recoveries over the last five decades.