Bush Misleads on the State of the Economy

In his radio address Saturday President Bush declared, "this week we received encouraging reports that show our economy is gaining strength."1 The actual reports, however, suggest otherwise.

A new GDP report by the Commerce Department revealed that the "economy grew at a slow-paced 3 percent annual rate in the second quarter, renewing concerns about a weak overall recovery and the potential for mediocre future job growth." The figure was "the slowest growth rate since the beginning of last year," down 1.5 percent from the previous quarter. Growth in consumer spending also plummeted, falling to just 1 percent - down three points from the previous quarter.2

On Friday the White House estimated that "the budget deficit would reach $445 billion in this fiscal year, by far the largest shortfall ever."3 The administration claims that this figure is an improvement, but in February 2003 the White House estimated that the deficit for 2004 would be just over $300 billion.4

Sources:

1 President’s Radio Address, WhiteHouse.gov, 7/31/04.

2 "Economic Growth Slows",Newsday, 8/02/04.

3 "Record Deficit of $445 Billion Projected for This Fiscal Year",New York Times, 7/30/04.

4 "Deficits and the Mid-Session Review",Center on Budget and Policy Priorities, 8/01/04.

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