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The GDP is Up Today Comments

  • By MP Dunleavey
  • October 29, 2009


usaIt's an odd mix of economic events.

This morning, the Commerce Department announced that the Gross Domestic Product—the main indicator of America's economic health—grew at an annual rate of 3.5% in the third quarter.

Sweet.

But today also marks the 80th anniversary of Black Tuesday, the 1929 stock market crash that ushered in the Great Depression.

While we're not a fan of superstitions and portents here at DW, it's helpful to use both events to help you synthesize what's really happening in the economy.

While it's nice to hear that the GDP is up, what that means (basically) is that personal and government spending increased. That's a no-brainer—with billions of dollars having been poured into the economy under stimulus efforts like "Cash for Clunkers" and the tax credit for new home purchases.

But if you're not feeling as if the rising tide is lifting your boat, that's because the impact of the credit collapse a year ago (as with the crash in 1929) will ricochet through Main Street for some time to come. It could be months before businesses feel the confidence to start hiring. Luckily, the DW philosophy of taking the long view, plus day-to-day action, will get you through.

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