Stimulus Fueled Much of Expansion
By JAMES R. HAGERTY and JON HILSENRATH
WSJ
The U.S. economy would have turned in a far worse performance in the third quarter without help from the federal government. Now the question is whether growth can continue without that support.
Congress and the White House aren't yet ready to put that issue to the test. On Thursday, the Obama administration endorsed lawmakers' efforts to extend tax credits for home buyers for another five months and to make them available to more people.
Even so, for the recovery to continue, "within two years at most, the private economy will have to wean itself off public stimulants and find its own internal sources of energy," said William Galston, a senior fellow at the Brookings Institution and former adviser to President Bill Clinton.
More than one percentage point of GDP growth in the third quarter came from car sales, driven in a large part by the temporary "cash for clunkers" program. After surging in July and August, retail car sales dropped 10.4% in September, suggesting the auto sector won't provide such a big boost again any time soon.
(Original here.)
WSJ
The U.S. economy would have turned in a far worse performance in the third quarter without help from the federal government. Now the question is whether growth can continue without that support.
Congress and the White House aren't yet ready to put that issue to the test. On Thursday, the Obama administration endorsed lawmakers' efforts to extend tax credits for home buyers for another five months and to make them available to more people.
Even so, for the recovery to continue, "within two years at most, the private economy will have to wean itself off public stimulants and find its own internal sources of energy," said William Galston, a senior fellow at the Brookings Institution and former adviser to President Bill Clinton.
More than one percentage point of GDP growth in the third quarter came from car sales, driven in a large part by the temporary "cash for clunkers" program. After surging in July and August, retail car sales dropped 10.4% in September, suggesting the auto sector won't provide such a big boost again any time soon.
(Original here.)
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