What Paul Krugman Won't Tell You

Whenever there's good economic news (and even when there isn't), Larry Kudlow is sure to trumpet it. The good news this time is that the revised numbers for GDP for the last quarter of 2004 reflect stronger growth. As Kudlow reports,

"The initial estimate of 3.1 percent GDP growth for last year’s fourth quarter was revised upward to 3.8 percent. Business investment was revised higher to 18 percent from 14.9 percent. Included in this, the rise in non-high-tech business investment outstripped high-tech investment (by 15.2 percent to 13.7 percent, both at annual rates) for the first time since 1994. Private-sector domestic output -- what Economics 101 students might remember as consumption plus investment (or C+I) -- came in at an outsized 5.5 percent growth."