Economic Growth Slows to 0.7 Percent in Q4

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Yuck. The US economy slowed down a lot in the fourth quarter of last year. GDP growth clocked in at a hair less than 0.7 percent:

For the year, GDP increased 2.4 percent, which is pretty much what it’s been for the past six years. So overall, this isn’t crushingly bad news. It just means the economy continues to putter along without really building up any steam. That’s better than Europe or China can say. Still, in the fourth quarter growth slowed, income growth slowed, and inflation was close to zero. And, as we all know, the stock market has been tanking lately. It’s sure not looking like it was a great idea to start raising interest rates—and if the Chinese economy goes south, it’s really not going to look like it was a great idea to start raising interest rates.

Naturally we want a political spin on all this, and that’s pretty easy: If this is just a blip, and growth returns over the next two quarters, then the presidential contest will remain a close-run thing. But if the economy flags badly for the next couple of quarters, Democrats are going to have a very, very hard time holding onto the White House. Are you ready for President Trump?

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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