Archive for January 29th, 2010

In a good sign for the economy, and a bad sign for the hopes and dreams of Republicans, the economy grew at an annual rate of 5.7 percent. Historically, that is fairly average coming out of a recession, but it is better than negative growth. This suggests the stimulus plan of President Obama is working.

The growth does not necessarily mean a net number of jobs are being added to the economy, although at 5.7 percent, it strongly suggests it.

On the other, the economy has been gutted by free trade policies and is floating largely on trillions of dollars created out of thin air by the government, along with debt. So the question will be: What will occur when the stimulus funds are spent in the summer of 2010?

All indications are that the Obama Administration has enacted policies that shift more income and wealth from working people and the government to rich, mostly unproductive, people. This weakens the demand for goods and services and suggests this business expansion, if we have left the recession behind, will be short and puny.


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