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News Report on Public Confidence
in the State of the Nation
2013
Chart 1 below shows the differences between demand-side and supply-side perspectives with respect to the key variables in the analysis.

Chart 1
Growth in GDP, Business Investment, and Employment
Related to Low Marginal Tax Rates
and High Personal Consumption Expenditures

Supply-Side Vs Demand-Side Tax Cuts and U.S. Economic Growth 1951-2004

Year GDP $Billions % Real GDP Growth Ranking of % Real GDP Growth Personal Consumption Expenditures
$Billions
% Real PCE Growth Ranking of % Real PCE Growth Gross Non-residential Fixed Investment
$Billions
% Real GNRFI Growth Ranking of % Real GNRFI Growth Total Nonfarm Employment
(000)
% Employment Growth Ranking of % Employment Growth Un-employment Rate Ranking of Un-employment Rate Marginal Tax Rate Ranking of Marginal Tax Rate
1951 339.3 7.7 BEST 208.5 1.6 WORST 31.8 4.6 MIDDLE 47,930 5.84 BEST 3.3 BEST 87.2% HIGHEST
1952 358.3 3.8 MIDDLE 219.5 3.2 MIDDLE 31.9 -1.9 WORST 48,909 2.04 MIDDLE 3.0 BEST 88.0% HIGHEST
1953 379.4 4.6 BEST 233.1 4.8 BEST 35.1 9.0 BEST 50,310 2.86 MIDDLE 2.9 BEST 88.0% HIGHEST
1954 380.4 -0.7 WORST 240.0 2.0 WORST 34.7 -2.1 WORST 49,093 -2.42 WORST 5.5 MIDDLE 87.0% HIGHEST
1955 414.8 7.1 BEST 258.8 7.3 BEST 39.0 11.1 BEST 50,744 3.36 BEST 4.4 BEST 87.0% HIGHEST
1956 437.5 1.9 WORST 271.7 2.9 MIDDLE 44.5 5.7 MIDDLE 52473 3.41 BEST 4.1 BEST 87.0% HIGHEST
1957 461.1 2.0 WORST 286.9 2.5 WORST 47.5 1.5 MIDDLE 52,959 0.93 WORST 4.3 BEST 87.0% HIGHEST
1958 467.2 -1.0 WORST 296.2 0.8 WORST 42.5 -11.0 WORST 51,426 -2.89 WORST 6.8 WORST 87.0% HIGHEST
1959 506.6 7.1 BEST 317.6 5.6 BEST 46.5 8.0 MIDDLE 53374 3.79 BEST 5.5 MIDDLE 87.0% HIGHEST
1960 526.4 2.5 WORST 331.7 2.8 WORST 49.4 5.7 MIDDLE 54,296 1.73 MIDDLE 5.5 MIDDLE 87.0% HIGHEST
1961 544.7 2.3 WORST 342.1 2.1 WORST 48.8 -0.6 WORST 54,105 -0.35 WORST 6.7 WORST 87.0% HIGHEST
1962 585.6 6.1 BEST 363.3 5.0 BEST 53.1 8.7 MIDDLE 55,659 2.87 MIDDLE 5.5 MIDDLE 87.0% HIGHEST
1963 617.7 4.4 MIDDLE 382.7 4.1 MIDDLE 56.0 5.6 MIDDLE 56,764 1.99 MIDDLE 5.7 MIDDLE 87.0% HIGHEST
1964 663.6 5.8 BEST 411.4 6.0 BEST 63.0 11.9 BEST 58,391 2.87 MIDDLE 5.2 MIDDLE 77.0% HIGHEST
1965 719.1 6.4 BEST 443.8 6.3 BEST 74.8 17.4 BEST 60,874 4.25 BEST 4.5 BEST 70.0% HIGHEST
1966 787.8 6.5 BEST 480.9 5.7 BEST 85.4 12.5 BEST 64,020 5.17 BEST 3.8 BEST 70.0% MIDDLE
1967 832.6 2.5 WORST 507.8 3.0 MIDDLE 86.4 -1.4 WORST 65,931 2.99 MIDDLE 3.8 BEST 70.0% MIDDLE
1968 910.0 4.8 BEST 558.0 5.7 BEST 93.4 4.5 MIDDLE 68,023 3.17 BEST 3.6 BEST 75.3% HIGHEST
1969 984.6 3.1 MIDDLE 605.2 3.7 MIDDLE 104.7 7.6 MIDDLE 70,512 3.66 BEST 3.5 BEST 77.0% HIGHEST
1970 1,038.5 0.2 WORST 648.5 2.3 WORST 109.0 -0.5 WORST 71,006 0.70 WORST 4.9 BEST 71.8% HIGHEST
1971 1,127.1 3.4 MIDDLE 701.9 3.8 MIDDLE 114.1 0.0 WORST 71,335 0.46 WORST 5.9 MIDDLE 70.0% MIDDLE
1972 1,238.3 5.3 BEST 770.6 6.1 BEST 128.8 9.2 BEST 73,798 3.45 BEST 5.6 MIDDLE 70.0% MIDDLE
1973 1,382.7 5.8 BEST 852.4 4.9 BEST 153.3 14.6 BEST 76,912 4.22 BEST 4.9 BEST 70.0% MIDDLE
1974 1,500 -0.5 WORST 933.4 -0.8 WORST 169.5 0.8 WORST 78,389 1.92 MIDDLE 5.6 MIDDLE 70.0% MIDDLE
1975 1,638.3 -0.2 WORST 1,034.4 2.3 WORST 173.7 -9.9 WORST 77,069 -1.68 WORST 8.5 WORST 70.0% MIDDLE
1976 1,825.3 5.3 BEST 1,151.9 5.5 BEST 192.4 4.9 MIDDLE 79,502 3.16 BEST 7.7 WORST 70.0% MIDDLE
1977 2,030.9 4.6 BEST 1,278.6 4.2 MIDDLE 228.7 11.3 BEST 82,593 3.89 BEST 7.1 WORST 70.0% MIDDLE
1978 2,294.7 5.6 BEST 1,428.5 4.4 BEST 280.6 15.0 BEST 86,826 5.13 BEST 6.1 WORST 70.0% MIDDLE
1979 2,563.3 3.2 MIDDLE 1,592.2 2.4 WORST 333.9 10.1 BEST 89,932 3.58 BEST 5.8 MIDDLE 70.0% MIDDLE
1980 2,789.5 -0.2 WORST 1,757.1 -0.3 WORST 362.4 -0.3 WORST 90,528 0.66 WORST 7.1 WORST 70.0% MIDDLE
1981 3,128.4 2.5 WORST 1941.1 1.4 WORST 420.0 5.7 MIDDLE 91,289 0.84 WORST 7.6 WORST 70.0% MIDDLE
1982 3,255 -1.9 WORST 2,077.3 1.4 WORST 426.5 -3.8 WORST 89,677 -1.77 WORST 9.7 WORST 50.0% MIDDLE
1983 3,536.7 4.5 BEST 2,290.6 5.7 BEST 417.2 -1.3 WORST 90,280 0.67 WORST 9.6 WORST 50.0% MIDDLE
1984 3,933.2 7.2 BEST 2,503.3 5.3 BEST 489.6 17.7 BEST 94,530 4.71 BEST 7.5 WORST 50.0% MIDDLE
1985 4,220.3 4.1 MIDDLE 2720.3 5.2 BEST 526.2 6.6 MIDDLE 97,511 3.15 BEST 7.2 WORST 50.0% MIDDLE
1986 4,462.8 3.5 MIDDLE 2,899.7 4.1 MIDDLE 519.8 -2.9 WORST 99,474 2.01 MIDDLE 7.0 WORST 50.0% MIDDLE
1987 4,739.5 3.4 MIDDLE 3,100.2 3.3 MIDDLE 524.1 -0.1 WORST 102,088 2.63 MIDDLE 6.2 WORST 38.5% LOWEST
1988 5,103.8 4.1 MIDDLE 3,353.6 4.1 MIDDLE 563.8 5.2 MIDDLE 105,345 3.19 BEST 5.5 MIDDLE 28.0% LOWEST
1989 5,484.4 3.5 MIDDLE 3,598.5 2.8 WORST 607.7 5.6 MIDDLE 108,014 2.53 MIDDLE 5.3 MIDDLE 28.0% LOWEST
1990 5,803.1 1.9 WORST 3,839.9 2.0 WORST 622.4 0.5 WORST 10,9487 1.36 WORST 5.6 MIDDLE 31.0% LOWEST
1991 5,995.9 -0.2 WORST 3,986.1 0.2 WORST 598.2 -5.4 WORST 108,374 -1.02 WORST 6.8 WORST 31.0% LOWEST
1992 6,337.7 3.3 MIDDLE 4,235.3 3.3 MIDDLE 612.1 3.2 MIDDLE 108,726 0.32 WORST 7.5 WORST 31.0% LOWEST
1993 6,657.4 2.7 MIDDLE 4,477.9 3.3 MIDDLE 666.6 8.7 MIDDLE 110,844 1.95 MIDDLE 6.9 WORST 40.8% LOWEST
1994 7,072.2 4.0 MIDDLE 4,743.3 3.7 MIDDLE 731.4 9.2 BEST 114,291 3.11 BEST 6.1 WORST 40.8% LOWEST
1995 7,397.7 2.5 WORST 4,975.8 2.7 WORST 810.0 10.5 BEST 117,298 2.63 MIDDLE 5.6 MIDDLE 40.8% LOWEST
1996 7,816.9 3.7 MIDDLE 5,256.8 3.4 MIDDLE 875.4 9.3 BEST 119,708 2.05 MIDDLE 5.4 MIDDLE 40.8% LOWEST
1997 8,304.3 4.5 BEST 5,547.4 3.8 MIDDLE 968.7 12.1 BEST 122,776 2.56 MIDDLE 4.9 BEST 40.8% LOWEST
1998 8,747 4.2 MIDDLE 5,879.5 5.0 BEST 1,052.6 11.1 BEST 125,930 2.57 MIDDLE 4.5 BEST 40.8% LOWEST
1999 9,268.4 4.5 BEST 6,282.5 5.1 BEST 1,133.9 9.2 BEST 128,993 2.43 MIDDLE 4.2 BEST 40.8% LOWEST
2000 9,817 3.7 MIDDLE 6,739.4 4.7 BEST 1,232.1 8.7 MIDDLE 131,785 2.16 MIDDLE 4.0 BEST 40.8% LOWEST
2001 10,128 0.8 WORST 7,055 2.5 WORST 1,176.8 -4.2 WORST 131,826 0.03 WORST 4.7 BEST 40.3% LOWEST
2002 10,487 1.9 WORST 7,376.1 3.1 MIDDLE 1,063.9 -8.9 WORST 130,341 -1.13 WORST 5.8 MIDDLE 39.8% LOWEST
2003 11,004 3.0 MIDDLE 7,760.9 3.3 MIDDLE 1,094.7 3.3 MIDDLE 129,931 -0.31 WORST 6.0 MIDDLE 36.1% LOWEST
2004 11,733.5 4.2 MIDDLE 8,229.1 3.8 MIDDLE 1,220.2 10.5 BEST 131,481 1.19 WORST 5.5 MIDDLE 36.1% LOWEST
*For each variable, years have been divided into three 18-year groups, ranked BEST, MIDDLE, and WORST.
SOURCES: Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts; Bureau of Labor Statistics; Tax Policy Center.
Appendix Table 2
U.S. Economic Growth 2001-2005

Revised Government Data Published July 28, 2006

Year GDP $Billions % Real GDP Growth Personal Consumption Expenditures $Billions % Real PCE Growth Gross Non-residential Fixed Investment $Billions % Real GNRFI Growth Total Nonfarm Employment (000) % Employment Growth Un-employment Rate Marginal Tax Rate
2001 10,128.0 0.8 7,055.0 2.5 1,176.8 -4.2 131,826 0.03 4.7 38.6%
2002 10,469.6 1.6 7,350.7 2.7 1,066.3 -9.2 130,341 -1.13 5.8 38.6%
2003 10,960.8 2.5 7,703.6 2.8 1,077.4 1.0 129,999 -0.26 6.0 35.0%
2004 11,712.5 3.9 8,211.5 3.9 1,155.3 5.9 131,435 1.10 5.5 35.0%
2005 12,455.8 3.2 8,742.4 3.5 1,265.7 6.8 133,463 1.54 5.1 35.0%
Note: These data were released after the article "Supply-Side vs. Demand-Side tax Cuts and U.S. Economic Growth 1951-2004", Critical Review (17) and after the related book The American Dream vs. the Gospel of Wealth: The Fight for a Productive Middle-Class Economy.
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