BEA estimates show that GDP grew significantly in the third quarter

Today, the Bureau of Economic Analysis (BEA) released GDP estimates for the third quarter of 2020.  According to the new numbers, the U.S. economy grew at an annual rate of 33.1%. This is in contrast to the 31.4 percent decline in GDP in the second quarter. The BEA credits this growth to continued reopening efforts among businesses that were restricted due to COVID-19.

As BEA particularly notes, the third quarter saw an increase in Personal Consumption Expenditures (PCE), reflecting a major bouncing back of services, “led by health care as well as food services and accommodations”). Goods consumption was also up, “led by motor vehicles and parts as well as clothing and footwear.”

This should be celebrated but also serve as a lesson to lawmakers.

The fact that the economy is booming and unemployment is down after states have eased lockdown restrictions is a testament to the damaging nature of lockdown policies. If economic recovery is to continue, lockdown policies cannot be extended.