A 5.75% increase the Gross Domestic Product Does Not Mean the Economy is Good for Most Americans

In 1983, when we were pulling out of the 1982 recession the growth rate for the quarters that declared the recession over were in the 9%. This was the result of Ronald Reagan’s tax cuts which put more real money into the economy. The 5.75% growth that suddenly is declared at good news today is made up of stimulus money. They do, after all, count government expenditures as part of the gross national product. Each stimulus dime the government spent, has artificially propped up the numbers you see today.

We are far from being out of the clear. With the amount the national debt has ballooned in the last year, $3.7 trillion, combined with the amount of money the Obama treasury flooded the market with by printing trillions, if this is a recovery it is a fragile recovery—a sugar high. Possible inflation or hyper inflation combined with a double dip recession is very possible as Americans continue to lose jobs and retail sales remain low.

When Obama planned the stimulus, he knew he could artificially force the GDP up with government expenditures, but this does not show the overall health of business in America. Don’t put Kool and the Gang in the CD player yet. This is not time to celebrate!

You cannot promote a healthy economy based on funny money.