Economy grows, joblessness persists
The economy grew at a 3.2% rate for the first three months this year, a testament to an economic recovery. At the end of 2009, the pace was a bit higher at 5.6%, so, while there is deceleration, there is still growth. It seems that the growth is not fast enough.
Accommodating population growth and rising productivity, the economy should be expanding at a rate between 2.5% to 3%, this out of the Commerce Department. Because the rate is only a little over this long-term projection, it will take longer for the unemployment rate, 9.7%, to come down.
It seems that the expansion was driven by American consumers, thus making the trend sustainable. While the federal government increased its spending, local and state governments cut spending at a 3.8% rate to compensate.