Don't be hoodwinked. Gross Domestic Product is not a valid Economic Indicator. I repeatedly warn people that we are not in an economic recovery, and post all of the numbers for the last several years for Retail Sales, Industrial Production, Factory Orders and so on, but a lot of fools send me emails to tell me that none of that matters because Gross Domestic Product is increasing and That is the only valid indicator of the economy. Let's look at GDP and see if it is valid. GDP = private consumption + gross investment + government spending + (exports − imports) Do you see that government spending in there? That is right, one of the major ingredients of GDP is government spending. GDP supposedly went up in the fourth quarter, but during that time almost NINE MILLION PEOPLE filed for Unemployment, and all the other indicators showed no real improvement. The end reality is that Government spending is steady state and GDP goes up, you have economic improvement. When Government spending has increased by thirty percent and GDP Goes up two percent like in the fourth quarter, the actual economy (jobs, manufacturing ...) has, in reality, gone down by 28 percent. GDP is being used by the Obama administration to trick people into believing that things are improving while all the time the real economy has been collapsing. That is the reason why all of these people keep on filing for unemployment. The actual jobs are going away by the millions every month.