JOINT ECONOMIC COMMITTEE CHAIR CALLS REVISED GDP FIGURES ‘ANEMIC’
Schumer: Anemic Growth a Wake Up Call for Major Policy Shift in Trade, National Investments, Energy, and Housing
0.6 Percent Growth Is Far Below 3-3.5 Percent GDP Growth Deemed Sustainable by Economists
Washington, DC – Today U.S. Senator Charles E. Schumer (D-NY), the chairman of the Joint Economic Committee(JEC), released the flowing statement in reaction to the Department of Commerce revised estimates that the nation’s Gross Domestic Product (GDP) grew only 0.6 percent in the first quarter of 2007. The GDP is the most comprehensive measure of our domestic production.
Sen. Schumer stated, “Today’s anemic GDP growth rate should serve as a wake-up call for all those who argue that this administration’s economic policies have been working. It’s time to change direction, rein in out trade deficit, and strengthen investment in innovative industry, kick our dependence on foreign oil, and bolster confidence in our housing market by stemming the tide of subprime foreclosures.”
The Bureau of Economic Analysis in the Department of Commerce includes more complete and more accurate first-quarter data leading to a downward revision for the GDP. The change from BEA’s earlier estimate of Q1 growth at 1.3 percent reflected a downward revision to inventory accumulation and an upward revision to imports.
Over the past year, the economy has grown at a 1.9 percent rate. That’s also well below the 3 – 3½ percent pace most economists believe to be sustainable over the longer run.
The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.
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