Oops, They Forgot The Exclamation Point. (Economic speed bumps ahead.)

CNN/Money ^ | September 2, 2003: 12:44 PM EDT | By Mark Gongloff

[.cnI redruM]

The economy's clearly accelerating in the third quarter, but the road ahead is far from smooth.

U.S. workers returned to the job Tuesday in an economy clearly stronger than it was in the spring and summer, and economists have high hopes the rebound will accelerate through the winter into 2004 and beyond.

But many economists believe that, after the impact of recent tax cuts and child-tax credit checks pass through the economy, there are several speed bumps on the road to a long-lasting rebound. Though it seems doubtful these jolts would trigger another recession, they could mean that 2004 ends up looking a lot like 2002 and 2003, with stretches of sluggish growth.

Labor-market pain Though unemployment, which clocked in at 6.2 percent in July, never got as bad as it did in prior recessions, it's also the worst in nine years, and it seems unlikely to fall significantly for several months -- economists surveyed by the Philadelphia Federal Reserve believe it will average 5.9 percent in 2004.

[.cnI redruM]

CNN lives in different world. They hate good economic news. The rest of us like making money and would be generous enough to prefer it if our next door neighbors raked a buck or two as well. Not CNN. They see it all through the lens of what helps the DNC.

[At _War_With_Liberals]

You're right. This is a hit piece, complete with eye catching graphics with captions like "Worst since WWII."

The first sentence says the economy is looking up, then the next 15 paragraphs tell you how bad it REALLY is and how the worst case scenario is a sure bet.

In Northern NJ, the economy is hot.

[Free_at_last_-2001]

They see it all through the lens of what helps the DNC. - Agreed but this bit must have hurt them to write "The economy's clearly accelerating in the third quarter..."

[.cnI redruM]

I feel their pain.

BWAHAHAHAHAHAH!

[wayoverontheright]

Higher energy prices act as a sort of tax on households and businesses, taking money away from potential discretionary spending and business expansion.

Exactly. And even WITH high energy prices, the current economy is showing pretty good spunk.

When the Iraqi oil does go online, it has potential to have a geometric effect on crude prices, as it will be unencumbered by OPEC quotas. I think oil prices are going to plummet in a couple of years if not sooner. Even without increases in Iraqi production, recent advances in extraction technology are increasing the output of existing wells.

[Moonman62]

You're right. This is a hit piece, complete with eye catching graphics with captions like "Worst since WWII."

But they are right about one thing, the child tax credits only provide a temporary boost on the demand side. They are bad economic policy, but where were these economists when the tax cuts were being formulated? I know, they were demanding that people who don't pay taxes should also get tax cuts.

[At _War_With_Liberals]

The tax cut has done little for me. I have no children. The fact that those who paid no tax get $1,000 per child disgusts me. Its enough that I am picking up the tab with my sky high taxes.