The subsequent performance of the economy and, not coincidentally, the stock market has proven that optimism well-founded, Smith said. GDP is the total value of all final goods and services produced in this country after eliminating the impact of inflation. Real personal consumption expenditures grew at a seasonally adjusted annual rate of 4.1 percent in the third quarter, the professor wrote. The outlook is extraordinarily good, Smith said. U.S. banks are lending money, the stock market is setting new records and consumer confidence has rebounded sharply.
Employment is at record levels and rising, and incomes are rising throughout the country.
Then growth will slow to 1.6 percent in 2001 as inflation picks up. This will lead to a recession in 2002 . . . As time allows, he's willing to discuss most economic issues with reporters.