2023 Good News

The pandemic has receded. Murders fell sharply across the U.S. in 2023, according to the F.B.I. Detroit is on track to record its fewest homicides since the 1960s. Rents are softening, and gas prices and crime rates are falling.

The U.S. economy is on track to end 2023 with vigorous growth for the year at an annualized rate of nearly 2.6% – much more than expected a year ago. A typical U.S. household is better off than it was in 2020. A strong labor market, rising wages and access to excess savings have helped spending continue despite inflation and higher interest rates. We have the best job market since the 1960s and the lowest uninsured rate in U.S. history. Wage growth, new business formation and prime-age labor participation rates are all at historically elevated levels.

Inflation has plummeted from a troubling 9.1% to 3.2% without causing a recession — a phenomenon that some once skeptical economists have dubbed “immaculate.”  Inflation-adjusted gross domestic product was recently revised upward for the third quarter to a 5.2% annual rate from the prior estimate of 4.9%, marking the fastest quarter of growth since late 2021. GDP grew more than 3% for the Biden presidency.

Our economic recovery has been better than any other G7 nation.  The Dow Jones broke 37,000 this month for the first time.

Prices fell — yes, fell — last month. Domestic oil and renewable production are at record levels.

The annual deficit, which exploded under Trump, is trillions less today.

Happy New Year!