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Chart of the day: Real GDP growth in Q4

Published on 12 Comments on Chart of the day: Real GDP growth in Q4

Economic growth skyrocketed in Q4 of last year:

That's annualized growth over the previous quarter, which is how BEA reports it. On a year-over-year basis, GDP was up 5.5% since the fourth quarter of 2020.

For the whole year, GDP increased 5.7%, the highest growth rate since 1984. However, most of that just made up for the big decline in 2020. The average of the past two years is an annual increase of about 1%.

GDP growth in Q4 was driven neither by personal consumption (up 3.3%) nor by investment in structures (down about 6%). As usual for the past few years, it was largely driven by growth in IP products. Stick that in your pipe and smoke it.

12 thoughts on “Chart of the day: Real GDP growth in Q4”

  1. jte21

    I'm confused. On my tee-vee they're saying that the economy is currently a million times worse than the Great Depression and Black Death combined.

    1. KenSchulz

      Get with the times! Truthiness is so ‘oughts’. It’s the 2020’s, and the media’s job is to serve up whatever alternative facts attract the most clicks/eyeballs.

  3. rick_jones

    As usual for the past few years, it was largely driven by growth in IP products. Stick that in your pipe and smoke it.

    So, ephemera which dissipates easily.

    1. KenSchulz

      But:
      1) American movies, tv shows, computer games, etc. are highly exportable:
      2) Digitally-delivered media have a low environmental impact. We’re building renewables-powered server farms
      3) Recurring costs of (re)production are low; royalties are somebody’s income.
      We should be reducing the work week and work year to allow people more time in front of screens growing the GDP. ????‍????

  4. Joseph Harbin

    Econ media rules*.

    1. When reporting GDP growth, discuss annual growth (lower number) rather than quarterly growth (higher number), lest anyone get the idea that we're in the midst of a real boom. Mention we're coming out of pandemic slowdown, so everyone understands this is exactly what was supposed to happen (except the last recession, so don't mention that). Extra credit if you include a quote from some doofus explaining away real GDP growth with the comment "Look at inflation! We're not even keeping up!"

    2. Ditto on jobs. It's all about coming out of a recession. It's a rebound, nothing to do with policy (don't even mention policy). It's what always happens (except when it doesn't, so don't mention that).

    3. When reporting on inflation, never mention that we're coming out of pandemic-induced recession and an era of historically (too) low inflation. Never mention supply chains or shortages. Do mention free money for sluggards and the nerve of workers expecting poor business owners to dig into their record profits to pay higher wages. Focus on the price of gas (but only when it's going up) and how the White House is failing to control it. And always quote the (higher) monthly rate (e.g., 7% for Dec) instead of the (lower) annual rate (e.g., 4.7% for 2021) so no one gets the idea it's not so bad.

    * Apply during D presidencies only.

  8. kenalovell

    When GDP grew at an annualised rate above 4% for a single quarter, the former guy bragged about it for days. Tweeted about it. Sneered that it was better than anything tha Obama guy could do. Got his propaganda machine to echo it across the nation.

    This president responded to what should have been a huge positive story with this riveting stuff:

    The GDP numbers for my first year show that we are finally building an American economy for the 21st Century, with the fastest economic growth in nearly four decades, along with the greatest year of job growth in American history. And, for the first time in 20 years, our economy grew faster than China’s.

    This is no accident. My economic strategy is creating good jobs for Americans, rebuilding our manufacturing, and strengthening our supply chains here at home to help make our companies more competitive.

    The NYT reported the story thus:

    Biden’s Economy Is Surging, but Voters Still See Gloom
    President Biden is facing an uncomfortable disconnect: The economy grew at the fastest pace since 1984 last year, but voters are downright pessimistic.
    Faltering consumer confidence in the economy could be a liability in the midterms as Democrats fight to keep control of both the House and Senate.

    I'm familiar with all the valid criticisms of the US media, but Democrats really do a terrible job of selling their achievements. Would "I DID TWICE AS GOOD AS THE FORMER GUY'S BEST!" be a hard message to convey?

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