Is the Recession Over?

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No surprise here: GDP was up 3.5% in the third quarter.  But is the growth sustainable?

The cash-for-clunkers program helped boost consumer spending on durable goods….Similarly, economists say the $8,000 federal tax credit for first-time homebuyers helped revive spending on housing.

….Stagnant consumer demand and withering consumer confidence have left companies wary of hiring more employees — or, for that matter, taking any expensive risks. The jobless rate reached 9.8 percent in September, its highest rate in 26 years. According to Thursday’s report, business investment in buildings and other structures fell at an annual rate of 9 percent in the third quarter.

The Wall Street Journal also provides a note of skepticism: “Since the federal stimulus reached its maximum effect in the third quarter and the unemployment rate remains high, there’s uncertainty over the sustainability of the recovery.”  As for myself, I’m curious to know not just where the growth is coming from, but where it’s going to. Wage growth has been weak this year, and there’s not much sign that the recovery in Q3 did much to change that.  So who’s getting the bulk of the benefit?

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

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Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

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