Economy slows to a 3.9 percent pace in first quarter:
Economic growth in the first quarter was slower than first reported — at an annual rate of 3.9 percent — a pace that was solid but lacking the momentum exhibited as the calendar turned to 2004.
Economic growth was less than the preceding quarter but was growth nevertheless. AP reporters apparently have the same mentality that afflicts equities traders: that growth, not financial strength or profit, determines the state of the economy.
An unfortunate, but probably meditated, mischaracterization. Each quarter, the same amount of gain in absolute dollars represents a smaller growth in the relative percentage measurement because each quarter, the whole gets bigger. So an addition of 3 to a total of 100 is 3% growth in the first quarter, but an addition of 3 in the second quarter (where the total is 103), the economy “slows” to 2.9%, the second seal is broken, and apparently the only way to prevent the end of the world is to elect John Kerry, who will Robin Hood money from the rich and corporations to increase the economy!
Or maybe I am reading too much into it.
