Thursday, October 29, 2009

"A Sham GDP for a Sham Economy"

OCTOBER 29, 2009, 1:18 PM ET

Mean Street: A Sham GDP for a Sham Economy

By Evan Newmark

Americans rejoice! GDP grew by 3.5% in the third quarter and the recession is over.

It’s time to drink champagne, dance in the streets, and have a group hug with Nancy Pelosi and Ben Bernanke. But whatever you do, don’t ask yourself why the recession has ended. The answer might ruin the party.

The recession is over only because Washington decided it should be. With billions in fresh government spending, it was only a matter of time before GDP posted some growth.

It’s too bad all that government spending is borrowed money. Someday, we’ll actually have to pay off this year’s $1.4 trillion deficit.

Go here for the rest of the story at WSJ Blogs.