There are several factors to consider when assessing the current state of the economy. Our current GDP stands at a whopping $16.8 trillion. However, a more accurate indicator of the economy's gross domestic product is GDP/capita-- approximately $53,000. Because GDP growth has fluctuated between a sustainable rate of 2 and 3%, the overall health of our nations GDP can be summarized as good. Unfortunately, GDP cannot capture the distribution of growth, and thus inequality is not well represented. In addition, GDP does not measure volunteer work, as well as the work-value of stay-at-home parents. Inflation is at 1.7%, and unemployment at 6.1% as of August 2014. Both inflation and unemployment remain at desirable rates; however both have greatly fluctuated in recent years due to the economic crisis of 2009. Current unemployment is not at the full employment rate, which may be partly due to an increase in the number of discouraged workers re-entering the workforce. U.S. real interest rates have remained relatively low and stable since 2010-currently at 1.7%. Industrial production has increased 4.1%, while capacity utilization has grown 2.8%, both since August 2013. Overall, the U.S. economy is in good standing, especially considering the long recessional recovery, and several world crises. .
Government intervention highly affects economic data, which is the primary discussion between Classical and Keynesian economists. Interest rates are controlled by monetary policy-a set federal funds rate. In addition, almost all fiscal policies have an effect on our GDP. Although GDP growth has stayed between 1 and 2%, it can be driven by excessive government spending, which under the Classical theory creates a "growth bubble" that will inevitably pop and lead to recession. However, Obama adopted a Keynesian strategy when implementing his stimulus packages and healthcare program, hoping to pull the United States out of recession through government spending.
