Rethinking Third Quarter GDP

Third quarter GDP grew 3.5%, beating estimates of 3.2%. Usually this indicates a healthy recover. But this quarter, the growth came entirely from one time adjustments.

3.5% 3rd quarter growth

-1.6% Cash for Clunkers

-.53% First time house buyers credit

-1.0% Stimulus

0.37% GDP growth without one time government programs

Growth without one time government spending is still anemic. No wonder unemployment is greater than 10%.