re: 3rd quarter GDP second estimate bumped up from 3.0% to 3.3%

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I’m not attacking a data point, I’m attacking an arbitrary standard

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Like "2-3% ideal growth"?

GDP growth is not inherently connected with inflation

What if we discover some Uber cheap way of producing something or extracting resources at less costly rate? That leads to growth but also lower prices

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3% is a good relative benchmark, but the problem is using it as essentially a pass/fail cutoff especially without considering anything else.

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Three percent is currently used by Trump for two main reasons:

1. It's the historical average since we have been tracking GDP.

2. It's the growth rate used to calculate projected revenues into the Treasury based on his current budget proposal (that congress has not touched).

If we achieve three percent growth without the help of congress it gives Trump a strong argument to pass his budget.

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I've taught macroeconomics. Your "ideal" is just silly.

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Then you must be keenly aware of the strong evidence than potential real GDP has declined in recent decades to closer to 2%, and why.

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The U.S. will never reduce its half trillion dollars/year budget deficit with a 2-3% GDP growth rate.

The only way to reduce the deficit, short of drastic cuts to defense and social welfare, is to get the GDP growth rate to 3.5-4.0%.

The last 4 years of the 20th century had 4%+ GDP growth every year and inflation averaged less than 2.5%/year.

It was the only period in the last 30 years where the deficit approached zero.

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bingo...nail head...right on...etc, etc, etc

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That the 3% standard mentioned on this board is some sign of a healthy economy when many economists have written that growth over 3 is a sign of an unstable American economy.

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Because those economist support policies that cannot achieve 3%. Policies like high permitting thresholds, high regulatory standards, high government subsidies thus squashing innovation and motivation, etc., etc.

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It's the historical average since we have been tracking GDP.

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Our modern economy is very different than the post-war economy of the 1950s.

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GDP growth is not inherently connected with inflation

What if we discover some Uber cheap way of producing something or extracting resources at less costly rate? That leads to growth but also lower prices

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I'm not really sure what you mean by not "inherently connected?"

Of course there are scenarios where the relationship is is stronger and others where the relationship is weaker, but the relationship is exists regardless so there is some inherent connection. It seems to me you're arguing an issue of causation.

Regardless, I'm a bit confused about volhalla's argument overall since the official GDP figures are adjusted for inflation anyways. Obviously that doesn't mean the relationship and its effects should be disregarded, but given that it's at least accounted for, I'm not sure what his 2 to 3 percent "ideal" argument is based upon.

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At this rate 3% annual GDP growth rate is well within reach. As it stands now if the economy grows at 4.2% for the fourth quarter the annual GDP growth will be 3% for the year.

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Didn't see this story on the Yahoo home page.

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Yeah but we continue to grow though liberty and law and order that begets the fruit of motivation and innovation.

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We grow through productivity gainz and labor force growth.