Jay Shambaugh writes for Brookings: “Don’t Let Flashy 3rd Quarter GDP Growth Fool You, The Economy Is Still in A Big Hole”
“When Gross Domestic Product (GDP) growth data for the third quarter of 2020 is released on October 29, it will almost certainly break records. Many analysts project growth over 30 percent at an annual rate – roughly twice as high as any quarterly growth rate since World War II.
“Yet despite this phenomenal-sounding growth, the economy will still be in a considerable hole, is actually slowing down, and presents a strong case for concern. Some basic math and data can help pierce through the mirage…”