Apparently Refers to New GNP, Inflation Reports : Reagan Hints at Biggest Economic Gains in 30 Years
President Reagan announced at an inaugural ball Monday night that two leading government indicators to be released by the Commerce Department will show the most dramatic improvement in the economy in more than 30 years.
“I’m not going to give you all the facts,” Reagan said at the ball at the Pension Building. “But one will be the best since 1951 and the other will be the best since 1967.”
Figures Due Today Reagan apparently was referring to the release this morning of the gross national product figures, expected to show that 1984 was the best year for economic growth in three decades. The other report apparently is one showing that overall inflation for last year was the lowest since the 3% of 1967.
The President’s remarks suggested that fourth-quarter growth was much stronger than estimated previously. He indicated that, instead of having the best rate of expansion in the gross national product since 1955--6.7%--the nation had the most expansion since 1951’s 8.3 %.
The President is given the figures by the Council of Economic Advisers shortly before release, but, like other government employees, he is strictly prohibited from disclosing the data until the official release time.
Reagan, who spent five minutes at the Pension Building ball, one of nine official inaugural balls that he and his wife, Nancy, attended Monday night, predicted that the economic breakthrough would further encourage the stock market, which shot up 34.01 points to 1,261.37 on the Dow Jones industrial average Monday, the best gain since a rise of 34.78 on Dec. 18.
As the crowd of several hundred persons cheered loudly about the economic news, Reagan said: “As I said in my campaign, ‘You ain’t seen nothing yet.’ ”
The gross national product is the broadest economic indicator of all, representing the sales value of all goods and services. The second-half slowdown in 1984’s GNP trimmed the growth of tax revenues, making the federal deficit even larger.
Economists generally consider sustained GNP growth of around 4% necessary to keep the unemployment rate--7.2% in December--from getting worse.
Strong Early Gains A projection issued on Dec. 19 saw the last quarter GNP growing at a 2.8% annual rate, adjusted for inflation, up from 1.6% in the third quarter but hardly a shadow of the strong rates of 10.1% and 7.1% in the first two quarters of 1984.
“We have survived the bad weather,” Reagan told the inaugural celebrators, who danced to the music of Lester Lanin and his orchestra. “If it’s any comfort to you, the weatherman says by the weekend it will be in the 40s.”
The temperature did not get above 10 all day, prompting the cancellation of many inaugural festivities, and dropped back near zero by the time of the inaugural balls.
