The economy expanded at a surprisingly strong 3.5 percent rate in the third quarter. It’s also likely to post a decent gain in the fourth quarter, although not as strong, according to many economists.
Much of that growth can be attributed to government spending, namely from Uncle Sam.
But federal programs to encourage consumer spending on cars and houses are expiring.
What’s more, companies remain reluctant to hire. In fact, most economists expect unemployment to continue to rise into next year. That could cause the economy to limp along for quite some time.
So should the government do more to stimulate consumer spending and business investment, such as extend the home-buyer tax credit and pump an extra $250 into seniors’ bank accounts? Perhaps, a tax credit for expanding businesses?
Or has the deficit grown too large already, meaning we’ll just have to tough it out until consumers and businesses return to the driver’s seat?
For instant updates, follow me on