The U.S. economy grew at a healthy 4.1% annual rate in the third quarter, revised figures showed Friday, boosting hopes that the recovery is shifting into higher gear after years of sluggishness.
The Commerce Department previously pegged the annual growth rate from July through September at 3.6%. But new data indicated stronger gains in consumer and business spending over the summer.
Friday's new estimate showed gross domestic product, the broadest measure of all goods and services produced in the economy, expanding at the fastest pace since the fourth quarter of 2011 and the second-fastest since the recovery began in mid-2009....

Demand side economics is driven by choice, availability and price tolerance. Demand side economics creates better paying jobs. When products are dirt cheap and products are in demand by preference of the consumer the price is then tolerated to INSURE a quality product. 

Demand side economics is a better economy, greater stability, better quality of life and leads to reasonable profits by companies. It is the best economy any country can have. Consumers and companies can afford their expenses and there is more disposable income to consumers that are paid better for their services.

...To be sure, Friday's report showed that underlying demand in the U.S. remained subpar. More than a third of the growth in third-quarter GDP was due to businesses' restocking their shelves, rather than final purchases. Excluding the effect of inventories, GDP advanced 2.5%, a pickup from previous quarters but still slow compared to previous recoveries. The report also suggested the housing recovery lost speed during the summer as higher interest rates took hold.
The higher GDP estimate was driven largely by a revision in consumer spending, which the Commerce Department now says grew at a 2% annual rate in the summer instead of the previously estimated 1.4%. The revision, now showing a slight pickup from the second quarter, reflected higher household spending across the board. Households stepped up purchases of big-ticket items such as refrigerators, daily items such as gasoline and on services, including health care....

Non-residential investment are things like factories and residential investment are things like housing. Investments are important because it shows confidence and will. People and businesses have the will for enlarging their consumer base for a product it feels confident about. Recently we have seen GM return investment to the USA. That is both confidence in the American consumer and the will to encourage that direction of growth for the company.

SEPTEMBER 12, 2008 AT 3:36 PM

Michael Ettlinger and John Irons (click here) have a new CAP/EPI report on supply side economics. The results, of course, are that it hasn’t worked well. This one chart is, of course, not definitive proof but it’s telling and all good posts need an image:...

It has been a challenge turning the boat around, but, I think we can have greater confidence on it's course now.