How Robust is the Current Economic Expansion?

Publication Date: June 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Richard Kogan; Chad Stone; Aviva Aron-Dine

Research Area:

Keywords: Economic projections; Fiscal future; Unemployment rate; Household income

Type: Report

Abstract:

We examine the expansion from 2001, when it began, through the third quarter of 2007, before the slow-down in economic growth in the last part of 2007. The evidence on the 2001-2007 expansion provides no support for the claim that the tax cuts generated exceptional economic growth. Rather, examination of a broad range of key economic indicators indicates that the economic expansion that began in 2001 was, on balance, weaker than average. In fact, with respect to GDP, consumption, investment, wage and salary, and employment growth, the 2001-2007 expansion was either the weakest or among the weakest since World War II.