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SUNDAY, NOVEMBER 22, 2009
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 ANALYSIS 
7

US GDP Jump Hollow if Unemployment Keeps Rising

... and it's still rising faster than before recession

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(Newser) – News that the US gross domestic product jumped 3.5% in the third quarter cheered investors and others, but the cheers will ring hollow if unemployment keeps rising, John Authers writes. Consumer spending rose even as disposable income fell—“ not a pattern that can be sustained for long, and it is inconsistent with the need for US families to pay down their debts,” he notes in the Financial Times.

Authers credits Cash for Clunkers and other government programs for sparking higher consumption—programs that won’t continue much longer. And while consumer optimism may be buoyed by the news, other data out today show that though the unemployment rate is rising more slowly, it’s still rising faster than before the recession began.

A board on the floor of the New York Stock Exchange.
A board on the floor of the New York Stock Exchange.   (AP Photo)
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7 comments
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ultramarine13
Oct 29, 09 8:55 PM CDT
We're not out of the woods yet, ladies and gentlemen. Last year I predicted that we would be in this for a good four or five years. Unfortunately, it looks like that prediction is holding true. Reply
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dontlikeyou
Oct 29, 09 8:56 PM CDT
Hey Newser, where's the story about Democrat Maxine Waters of California and the investigation of her for influence peddling? USA Today ran it so obviously liberal rags are running with it.... http://www.usatoday.com/news/washington/2009-10-29-waters_N.htm?csp=34 Reply
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cornelison
Oct 29, 09 9:25 PM CDT
The shrinking middle class hurts the job market. Also, some small businesses have not been able to meet the health insurance costs for their employees. That's where the jobs should be coming from. There have been complaints made to The White House from people who want to borrow money from the banks so that they can start a business. The banks aren't loaning & people are really angry about it. Reply
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Antiks
Oct 29, 09 9:54 PM CDT
3.5 percent GDP is breaking even. That's nothing to crow about. Reply
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IN RESPONSE:
guanlob
Oct 29, 09 10:42 PM CDT
You do know that is an annualized figure right? Real quarterly GDP growth was .7%.
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