South By North Strategies, Ltd.

The graph (below), which was prepared by the office of the Speaker of the U.S. House of Representatives, has been making its way through the blogosphere.  The intended point is that economic conditions, as measured by rates of GDP growth, have been improving under the current administration and congress.

The graph is right to note that the direction of changes in GDP growth has been positive and that the country has experienced three consecutive quarters of growth. Yet more important than the direction is the rate of growth.  And the recent growth rates are insufficient to close the gap between actual output and potential output.  As a result, the recovery is a tepid one that is proving insufficient to put much of a dent on the overall high levels of joblessness.

Rather than signaling “mission accomplished,” the graph suggests that more needs to be done and that the policies pursued since early 2009 have made a difference. The challenge is make them more effective.