State of the Economy

By Gene Sperling, Christian E. Weller | January 26, 2006

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The economy will likely play a prominent role in this year's State of the Union address.

In the weeks and months leading up to the speech, the President and his economic team and staff have sought to create a selective and exaggerated picture of the economy as a means to justify their fiscally reckless economic policies and to support making their tax cuts permanent. Yet, while GDP growth may have been solid over the last couple of years, growth over the full recovery has been mediocre, and job and wage growth have been historically weak. The tide may be rising, but it is has been unusually weak at lifting all boats. Historically low job growth, declining wages, rising poverty and the worst deterioration in our fiscal situation in history is hardly proof that current fiscal policies are working or should be continued.

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Read also: What You Won't Hear in the State of the Union, by Gene Sperling