I've never liked government statistics that claim to measure the economy--particularly the Gross Domestic Product. GDP only tells you that stuff is being made--not who truly benefits from the growth in GDP. But, it is worth noting yesterday's news, from The New York Times, that not only is economic growth slower but, more important, for regular people, is the continued rise in prices. Now, rising prices--especially when we know wages are fumbling along--is bad news for workers.
Economic growth slowed to its weakest pace in four years during the first three months of 2007, underscoring how the persistent slump in the housing market continued to serve as a drag on the American economy.
In its first estimate of economic growth for the quarter, the Commerce Department said the nation’s gross domestic product, the most comprehensive measure of overall economic activity, expanded 1.3 percent for the quarter, barely over half the rate recorded in the final quarter of last year.
The abrupt slowdown was not enough to put a brake on inflation, however. The consumer price index most carefully monitored by the Federal Reserve, which excludes food and energy, rose 2.2 percent in the quarter, at an annual rate, above the Fed’s stated comfort ceiling.