Economics question….

For you folks out there that spend more time thinking about this than I do.

While the US has technically been out of a recession for a while now (that is, the official GDP numbers are net positive), how much of that is simply the result of massive government deficit spending?  If so, why not borrow $5 trillion dollars and show more impressive growth numbers?

2 thoughts on “Economics question….”

  1. If that is the case I wouldn’t use the status of recession or not to understand America’s economic situation.

    The problem with such stimulus is how well it transfers into real economic movement and the burden of the debt. I guess the idea is to use a surplus which was built up in better times but no government does that.

  2. Frankly, what from what I’m seeing we are seeing a seasonal upturn, but the fundamentals of teh economy have not changed. We have a huge debt hangover that still has not been purged from the system with a lot left to go.

    IMHO, the econometric numbers coming from FedGov are smoke and mirrors. The real indications say we aren’t in a recession, but the stuttering at the beginning of a depression. We are overdue and the forces that the FedGov has managed to pen up are about to become irresistible. When that point is reached, Katy bar the door.

    Our economy is hollow. Leftist Congresses have run much of our industry offshore with the rest looking for the door, if they can take it.

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