White House: GDP numbers "encouraging," but economy remains "fragile"

CBS/iStockphoto

The White House on Thursday called the latest real GDP figures "encouraging," but acknowledged that "faster growth clearly is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment."

In a blog post on the White House website, Katharine Abraham, a member of the Obama administration's Council of Economic Advisers, commented on the Commerce Department's Thursday release on the third quarter GDP numbers ?- which show a 2.5 percent annual growth rate, marking the ninth straight quarter of positive growth. 

Spending lifts economy 2.5% after near stall

The 2.5 percent figure is nearly twice the growth - 1.3 percent - achieved in the second quarter.

Abraham noted that despite the positive signs, more work was needed to create jobs and grow the economy.

"While the continued expansion is encouraging, faster growth clearly is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment," she said.

According to the blog post, business investment -- which grew 16.3 percent at an annual rate - provided a notable source of the third quarter growth, while residential construction also increased. Other "positive contributions" included consumer spending, fixed investment, and net exports.

Abraham said that despite progress, the economy remains "fragile." She called on Congress to pass the president's jobs bill to ensure continued growth.

"We are, nonetheless, at a fragile moment in the world economy, and cannot afford to do anything to undermine our economic recovery. That's why the President continues to urge Congress to pass the American Jobs Act without delay," she wrote. "The American Jobs Act includes measures that would accelerate the recovery, including extending the payroll tax cut and unemployment insurance, keeping teachers in the classroom and police and firefighters on the beat, and investing in our nation's infrastructure to help put Americans back to work. Independent economists say it could increase employment by up to 1.9 million, increase growth and lower the unemployment rate."

Abraham also made a push for the "balanced approach" to deficit reduction that the president pushed earlier this year.

[acommoner]

Fair Free Trade - The key to sustainable recovery is the return of manufacturing (maker) jobs to the USA. US American Jobs will not return to the USA until 3/4 of our Local Governments adopt a policy of County Wide Fair Free Trade Zones. Where all products and/or services offered for sale/use in "The Zone" (be it county, state, or nation) must be produced and/or provided in accordance with all USA; quality, safety, health, environment and wage standards, and no one is even talking about this option. Go to: www.manifestry.info > Fair Free Trade

[PourpaixPourpaix]

Appreciate the White House discussing this openly and helpfully, without chest-thumping and politicking. Not taking credit for making the good news happen, and not disparaging the other party for whatever reason comes to mind that allows negativity be cast.

As any student of history can tell you, horrible regimes come into power by wielding negativity when undue as a tactic to obtain popular support. I have no desire to see America succumb to rhetoric of hatred the way of Nazi Germany or Communist Russia.