The government announced that GDP grew by 3.5% in the 3rd quarter of 2009.
Yet unemployment continues to grow at the same time.
So, is the key to economic growth putting more and more people out of work?
Of course not.
Cash for Clunkers accounts for a portion of this increase, as does other government spending.
Think of it this way: imagine you produce a product and lose money every time you sell a unit of this product. So, to avoid going out of business you borrow more and more money and go deeper and deeper into debt. But your numbers look good as you produce more and more. Soon you will be able to borrow no more money. Nor will you be able to pay your benefactors. Everybody will be poorer for your futile effort.
This is the American economy today.
This is a false economy.
This is not the beginning of a recovery.
The worst is yet to come.
Separate But Equal Is Best Scenario
4 years ago