The Economy: "Not Good"

Former British PM John Major tells a very funny story about being with Boris Yeltsin at a press conference. A reporter asks Yeltsin if he could succinctly describe the state of the economy. Yeltsin replied: "Good." The reporter asked if Yeltsin could say a little more? Yeltsin replied: "Not Good."

And so it would appear with the prevailing narrative on the American economy. This narrative has been that "The economy has done well in terms of output and productivity, but people don't really think it has benefited them because of slow job growth, and poor income figures." Now it seems as if even this might be too generous. Yesterday, unusually, the head of the Center on Budget and Policy Priorities put out a statement on recent growth figures. Mr Greenstein, you have the floor:

STATEMENT OF ROBERT GREENSTEIN,
EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES, ON THE COMMERCE DEPARTMENT’S NEW GDP FIGURES

Today's announcement of a marked slowdown in recent growth follows upon Labor Department figures issued earlier this month showing that job growth has slowed significantly in 2006. These figures contribute to the mounting evidence that the economy has performed relatively poorly during the current recovery. The economy always recovers after a recession, regardless of the policies pursued. But this recovery has been unusual in that economic growth and investment growth are both below the average for recoveries since World War II. And job growth and wage and salary growth are far below average, with the income of the typical non-elderly household failing even to keep pace with inflation. For average Americans, it is not a pretty picture.

Small wonder, then, that we are all talking about Lynn Cheney's steamy bodice rippers, Harold Ford's playboy past, and George Allen's love of gay marriage. Small wonder, indeed.