Is Growth Returning?

The third quarter GDP (Gross Domestic Product) report was released today and it showed an increase of 3.5 percent. This means that the total value of all goods and services produced in the United States from July to September grew 3.5 percent from the prior quarter. This quarter of growth follows four consecutive quarters of decreases and officially marks the end of the current recession.

Is this all good news? The answer can be "Yes" or "No," depending on how you interpret the news and who you are talking to. It is a good thing to see some growth in the American economy again. We all benefit from growth and progress in our economy and standard of living. One caveat though, is that the American GDP is still 10 percent below where it was at its peak in 2008. The unemployment rate also stands at 9.8 percent, which is the highest it has been since the early 1980s.

Many corporations have shown earnings growth recently, but much of this is due to cost cutting as opposed to revenue growth. Much of the GDP growth was also due to consumers purchasing automobiles, many encouraged by the "Cash for Clunkers" program. Government spending in general has also been higher than normal recently.

An ideal situation is an economy experiencing fairly consistent, sustainable growth with low unemployment. The American economy has experienced this situation in the past and should again in the future, but much government intervention needs to be reduced and rolled back so the U.S. economy can stand on its own. American workers and consumers have the will and the desire to see our economy succeed. Our economy will move forward from a stronger base once a recessionary period is behind us. No one knows how the next few years will play out, but we are seeing more and more positive signs.