What 3.2 Percent GDP Growth Says About Our Contradictory Economy

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Just before leaving, Mubarak inflated Egypt civil servant wages +15%. Imagine Egypt civil servants would made 40% of GDP as Greece bureaucrats: then Egypt GDP would increase +6% just because Egyptian civil servants earning +15% more!
Every dictator knows the trick: borrow more on one side to pays the civil servants more on the other side, and it will make GDP rise, so the banks will think everything is OK, and will lend the money without problem!Jean
You see: GDP rise is not "THE" criterium to follow!
In december 2010, Europa borrowed 1 billion EUR just for paying 13th and 14th salaries to Europa bureaucrats earning already 9'000 EUR/month: you see that the European dictators of the unique thought also knows the tricks!
The problem is because the "production" of the civil servants is admitted to be equal to their "costs"! National accountability rules should be changed!

Jean-Francois Morf 1:34PM February 15, 2011

We will, as Americans, work our way out of economic dispair. The economy will slowly grow, Americans will reduce their debt and markets will stabilize. Without hard times, we would not recognize the benefits of good times, nor would we appreciate the fruits of our innovation, hardwork and labor. With out contraction, an expansion would not be nearly as inspiring -- feelings of hope and optimism take hold in expansionary times. When strong economic growth returns, hopefully it will be fueled by productivity increases and not credit card limit increases.
Americans have been through worse economic upheavels in the past and we have survived -- the Great Depression, massive government debt brought on by WWII, the rampant inflation of 1970's, and now this -- the Great Recession. Comparatively speaking, this economic crises is nothing compared to some of the travails Americans have endured in the past 100 years. I suspect, as a nation, we will come out just fine, but as an individual I'm not so sure. In the short run, am I doomed to be underemployed, underpaid and overworked? As for retirement, I don't worry about that because I'll probably die of exhaustion trying to pay my bills.
At least I have a job, and I worry about those who can't find work, but I take comfort in knowing our nation will probably be alright in the long run. In all sincerity, can our nation really be alright in the long run with so many people unemployed, for such a long time? When good times return, I'm saving more and speding less. I not borrowing to buy and I resolve to not return to my old ways of serial refinancing my primary residence. Oh who am I kidding? When credit loosens up again, I'm doing what every red blooded American is going to do -- I'm going to start shopping again. And so the cycle goes ........

Rob Riebeth of CA 1:42AM June 17, 2010

Unemployment, always the lagging indicator, is likely to remain static due to that great wooshing sound, Ross Perot warned us about!!! Economists have failed to figure in America's loss of Manufacturing preeminence, to China, India, etc. Our fall as super engine of the world's goods, will continue unabated until we retool to the 21st Century Economy ( i.e. Green Technology, High Speed Rails etc.) Also our tax structure is such that only 47% of Americans pay Income tax -- The other 53% pay absolutely nothing--- Being either too Rich (and so offshore and use loopholes) or too poor to pay. The only equitable solution I can see would be for the US to replace Income tax with a National Sales Tax (Exempting food and Medicine) -- This would allow us to enact a defacto Import tax without breaking our many trade aggreements -- Which would make up, at least a part of our loss of manufacturing. A National Sales tax would bring in much more revenue than Income tax -- and would be acceptable ,if it replaced Income tax-- Income tax is Inequitable , and doesn't produce enough Revenue!! I think its time to think outside the Box!! Would the Public accept an 8% National Sales Tax if Income tax were abolished ? --- I think it would be above a 90% approval in favor of a Sales tax!!!

Brian Walsh of ID 10:53PM May 08, 2010

There is no recovery until new jobs are created. Meanwhile, debt runs rampant.
Our general perception has been that debt is not only right, it is a right. Much of the national budget has been bloated by special interests, and by satisfying the personal wants of elected officials.
http://pacificgatepost.com/2010/04/end-our-intimate-relationship-with-debt.html America has little choice but to completely change its relationship with debt.
Read more: http://www.miamiherald.com/2010/04/30/1606734/us-economy-grew-briskly-in-first.html#ixzz0mdD159At

James Raider of WA 8:03PM April 30, 2010