The Obama Administration used today's GDP numbers, which reflect small growth, to proclaim the "recession" over, but is it. The administration is in danger of falling into a false sense of security.
Unemployment continues to skyrocket, foreclosures still soar, corporate revenue declines are still massive and consumer spending is way down. The crisis continues to surpass the Great Depression in the areas of foreclosures and revenue declines, among other things.
The aforementioned growth is actually the many billions in stimulus money, the government doled out that certain businesses are claiming as revenue. Therefore, said growth is not the real deal. It is artificial growth.
The government cannot sustain this form of growth by spending one to two trillion per year, as it will wreak havoc on the national deficit. Corporate America needs to start cutting back on waste and creating actual products and real services again. No more ponzi schemes, rip-offs or gouging.
With big government boost, U.S. economy grew in 3rd quarter
The U.S. economy roared to life this summer, as an array of government actions led to the strongest quarter of growth in two years.
The Commerce Department reported Thursday that the nation's gross domestic product rose at a 3.5 percent annual rate in the July-through-September quarter, the clearest evidence yet that the country has begun to emerge from the deepest downturn in decades.
But there were few signs in the new data that the private sector will be able to sustain that growth once the government pulls back, or that the rise will soon translate into an improving job market.
The unemployment rate has continued rising in recent months, to 9.8 percent in September, as businesses remained reluctant to hire...
http://www.washingtonpost.com
