B U I L D I N G A S T R O N G E C O N O M Y

T H E R O L E O F P O L I C Y I N B U I L D I N G A S T R O N G E C O N O M Y



4.4
3.7
0.8
1.6
2.5
3.9
3.2
3.3
2.7
3.0
3.1
3.0 3.0
2.9
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
1
2
3
4
5
Strong Economic Growth Continues
Percent change from year earlier
-------------Projections-----------
























1998 1999 2000 2001 2002 2003 2004 2005 2006
120
125
130
135
140
Job Growth Remains Strong and Steady
Jobs in millions
7.2 Million New Jobs
Since August 2003


























1977 1981 1985 1989 1993 1997 2001 2005 2009
0
2
4
6
8
10
12
14
Actual Data
Administration Forecast
Inflation Remains Low and Inflation
Expectations are Subdued
Percent change CPI-U Q4 to Q4






















1998 1999 2000 2001 2002 2003 2004 2005 2006
0
10
20
30
40
50
60
70
80
0
2
4
6
8
10
12
14
Crude Oil (Left Scale) (Y1)
Natural Gas (Right Scale) (Y2)
Crude Oil and Natural Gas Prices
Have Surged in Recent Years
$/Barrel $/mmbtu
Crude Oil (Left Scale)
Natural Gas (Right Scale)
Nov.
2006





















1977 1981 1985 1989 1993 1997 2001 2005 2009
0
5
10
15
20
91-Day Treasury Bill Rate
Yield on 10-Year Treasury Notes
30-Year Conventional Mortgage
Percent
Projected
Values
Interest Rates are Projected to Remain
at Moderate Levels
2012



























2.1
2.2
0.7
2.0
1.3
1.7
2.5
3.0
1966-71 1971-76 1976-81 1981-86 1986-91 1991-96 1996-01 2001-06
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Productivity Growth has Accelerated
Since the Mid-1990s
Average percent change

























1947 1953 1960 1966 1973 1979 1986 1992 1999 2005
20
40
60
80
100
120
140
160
Labor Productivity -- Output Per Hour
Real Compensation Per Hour
Productivity is the Driving Force Behind
Labor Compensation
Index 1992 = 100


































1990 1992 1994 1996 1998 2000 2002 2004 2006
0
10
20
30
40
50
60
Stock Related Assets
Homeowners Equity
Other Financial Net Worth
Real Household and Nonprofit
Net Worth by Type
Trillions of 2006 dollars