Too soon to decide- if the causes can ever be untangled. The issue is confounded by increased military spending in Iraq (up 46%) and increased business spending (up, what, 14-15%?; these figures are from the NYtimes). These %ages are higher than the increase in consumer spending, the main theoretical source of growth from tax cuts.
The rising productivity is what is boosting the GDP.
Jobs will not be created if productivity continues to rise; many of the increases in productivity are due to jobs being sent overseas.
“The total outsourcingof business-process jobs by American
companies is expected to grow to $136 billion by 2015, from
$4 billion in 2000, and create 3.3 million jobs, according
to Forrester Research of Cambridge, Mass.” So in my opinion, this is going to be another “rentier recovery,” as the numbers keep rising, but job creation remains stagnant.
Keeping labor cheap in America is great for Bush’s corporate backers, but not so hot for the average resident of, say, Mattoon, IL. (flipping through stack of Wal-Mart stock certificates) Which is too bad.