The economy has recovered well. Today, the U.S. still accounts for almost 25 percent of global output, nearly the same share as in 1990. The inflation that plagued the U.S. as it reopened from the worst days of the Covid-19 pandemic has slowed dramatically. As Jennifer Rubin noted recently, the annual inflation rate for producers is 2.7%. The lowest rate in more than two years.
Meanwhile consumer price increases are at their lowest point since May 2021: 5%.
Gasoline prices have dropped 17.4% since the high prices that followed Russia’s invasion of Ukraine. The overall declines mark nine months of slowing inflation. Good news.
At the same time, labor force participation is at record high levels and unemployment is at a 50-year low of 3.5%.
Black unemployment, which stands at 5%, has never been lower. Real incomes—that is, incomes after inflation is factored in—have risen 7% for those making $35,000 a year or less and 1.3% across the whole economy.
Meanwhile, the deficit has dropped more than $1.7 trillion in two years.