U.S. economy grew at record 33% in Q3 – but much of it was artificial

The United States is coming off a historic annualized 33% economic expansion in the third quarter, according to the Bureau of Economic Analysis (BEA). This follows a 31.4% year-over-year collapse in the second quarter.

This is tremendous news for President Donald Trump with only days until the election. But it’s not that good when you start combing through the reasons why the GDP spiked.

For one thing, the GDP growth was driven by personal spending, which was buoyed by the nine federal and state benefit programs.

Without this crutch from the government, people would not be spending. Therefore, it is an artificial boost.

Besides, the GDP isn’t the greatest of economic measurements. It is only a snapshot that gives politicians the ammunition to say they’ve done a good job or a bad job without focusing too much on the numbers.

Plus, when you have the federal government spending trillions of dollars and the Federal Reserve printing trillions of dollars, you better have double-digit growth!