Gross Domestic Product comes in at 3.5 percent on the eve of the 2 year anniversary of President Bush’s 2003 tax cut.
Washington D.C. – Today the Department of Commerce reported that the U.S. economy expanded at a 3.5 percent pace. Although the initial estimates released in April placed growth at a solid 3.1 percent, the torrid pace of growth has surpassed expectations by 0.4 percentage points or $10.6 billion. Despite last month’s pessimistic pundit predictions, the strong and steady increase in Gross Domestic Product reveals economic growth rather than a slowdown.
“The GDP of 3.5 percent is yet another indicator pointing to the strength of the economy,” said Grover Norquist, president of Americans for Tax Reform (ATR). “Here is the message that the growing GDP is sending to all of those pundits ranting about the economic slowdown: the economy is alive and kicking. Get used to it and find another reason to claim that the sky is falling.”
This upward revision of the GDP to 3.5 percent is the newest piece of the clear picture emerging. This picture of economic growth also shows that the U.S. economy has expanded for 14 consecutive quarters and has exceeded 3 percent growth for 8 straight quarters. Also, the U.S. economy has expanded at a healthy 4.35 percent rate since the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) passed in June of 2003.
Strong economic growth has also been mirrored by strong expansion in the U.S. job market. Since the passage of JGTRRA, the national unemployment rate stands at a meager 5.2 percent, a rate far lower than the average rate of the 1970’s, 80’s and 90’s and the U.S. economy has generated 3.5 million new jobs. The economy has created 844,000 new jobs in 2005, on pace to create more than 2.5 million jobs for the year.
“This economic expansion is vital and must be maintained. Thanks to President Bush’s tax cuts on businesses and investment, Americans are prospering,” continued Norquist. “Making the tax cuts permanent will ensure that long-run growth is achieved. ”