Growth ? are you serious ?
People keep citing the 3.5% growth rate of our GDP as a clear indication that we are recovering.
Let’s get our heads out of the sand and think.
The stimulus package is $950 billion, give or take $100 billion. ( its their accounting issue, not mine ).
As of May 2010, they have spent approximately 50% of the stimulus money.
Our economy is approximately $ 14 trillion dollars.
½ ( 950 billion ) / 14 trillion = 3.39%
The spending of our stimulus package accounts for all of the growth we have seen.
Get ready, because when the stimulus runs out, our economy will slow down. The projects that were undertaken were not productivity enhancing, and will not create good jobs. They just perpetuate the status quo, until the problems return.
Our government has made a serious and dramatic mistake with regard to the stimulus package. It appears that in an effort to repay campaign contributors, this administration took advantage of the economic turmoil. They rammed through a spending bill that has little chance of creating any long term growth, but absolutely added a trillion dollars to our debt burden.
It’s a disaster. I am afraid.
peter
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May 25th, 2010 at 10:47 am
A good way to visualise this dead cat bounce is to look at charts of actual goods produced like cars. It looks like a bunge jump. We are waiting see if the cord holds.