Are We There Yet?

GDP jumps again

We're making more money, but the increase is less

   Coffee-shop chats with workers show more confidence, and official government survey data suggest that economic recovery is on the way.
   The Federal Reserve Board has been saying for some months that things are improving, enough so that this week the Fed indicated it would stop its stimulus program. Today, the Census Bureau said total economic output grew by 4.1 percent in the third quarter, up from an annualized rate of 2.5 percent in the second three months of the year.
   Separately, the government said personal income growth slowed slightly in the July-September quarter, to 1.1 percent from 1.2 percent in the second quarter of 2013.

   So are Americans prospering? That depends on how you think of yourselves.
   Of the 313 million or so people living in the U.S., the home ownership rate in the four-year survey period ended 2012 was 65.5 percent, and median household income was $54.046. The median value of owner-occupied housing units was $181,400 during the same period, according to a Census Bureau report.
   Meanwhile, 14.9 percent of all Americans are living below the poverty level. And that percentage has not changed much in many years. Moreover, the federal minimum wage of $7.25 an hour, after adjusting for inflation, is more than 20 percent below what it was 45 years ago.

   Are we there yet?  When it comes to a prosperous society, a few are doing well, and those in the great middle are beginning to feel better. But there's still a danger that supportive policies will slack off and send the economic engine on a rocky detour.