President Obama said figures on economic growth and the jobs created through government spending shows that after a horrendous downturn the economy is “moving in the right direction.”
In his weekly radio address, Obama extolled the Commerce Department report that says the U.S. economy grew at a 3.5 percent annual rate the third quarter and separate data showing spending from the $787 billion economic stimulus is directly responsible for 640,329 jobs so far.
While this is great new in and of itself, it does not point towards long term recovery.
Looking closely at the components of GDP reveals a more disturbing picture. While consumption, exports, and the government sector were up, private investment has fallen through the floor. The graphic below tells the tale. Once the government stimulus dries up there is no private investment- the real lifeblood of economic recovery- to take is place.
1 comments:
They are just prolonging the inevitable.
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