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President Trump was incorrect when he tweeted that more than a century had passed since quarterly economic growth exceeded the unemployment rate, said Monday the principal economist of the White House.
"The GDP rate (4.2%) is higher than the unemployment rate (3.9%) for the first time in more than 100 years!" Tweeted Mr. Trump on Monday. Economic data show that this circumstance last occurred in early 2006 or around 12 years ago.
Kevin Hassett, the president of the Council of Economic Advisers of the White House, said Monday that this mistake was probably the result of misinformation sent to the president.
"The history of thinking of how mistakes happen is not something you can do, you know," Mr. Hassett said. "What's true is that it's the highest of the last 10 years and, at some point, someone has probably passed it on to [Mr. Trump] add a zero to that, and they should not have done it.
Hassett also joked that he was not "the chairman of Twitter's council of advisors," repeating a sentence he gave in June after President Trump tweeted that he was "waiting" for the report unusual rupture of the protocol.
The quarterly change in gross domestic product – the value of all goods and services produced in the economy, adjusted for seasonality and inflation at an annual rate – has been higher than the unemployment rate dozens of times over the past 70 years. rare in recent decades.
The US government began compiling official unemployment statistics in the 1940s. Between the first quarter of 1948 and the second quarter of this year, the monthly unemployment rate at the end of the quarter was 64 times lower than economic growth of the quarter.
This happened recently between April and June of this year. GDP grew at an annual rate of 4.2% in the second quarter. In June, the last month of the quarter, the unemployment rate was 4.0%. It fell to 3.9% in July and remained at this level in August.
Before that, the rate of economic growth was higher than the unemployment rate in the first quarter of 2006, twice in the early 2000s and seven times in the 1990s.
Write to Harriet Torry at [email protected] and Rebecca Ballhaus at [email protected]
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