The US economy grew at the fastest pace in six years to close out 2009. 

The gross domestic product expanded at an annual rate of 5.7 percent increase the fourth quarter.  This is great news, but experts are a little skeptical on the economies’ long term pace of growth.  The growth rate in this quarter was the fastest growth since the third quarter of 2003. 

The Obama administration seized on news of the latest upturn as an opportunity to push its proposal to encourage hiring.  Companies would receive a tax credit of up to $5,000 for each new hire, and an additional credit on Social Security payroll taxes for raising wages — by increasing hourly pay or work hours, for example — in excess of inflation.  “Now’s the perfect time for this kind of incentive because the economy is growing, but businesses are still hesitant to start hiring again,” President Obama said in Baltimore.  

Up to this point, the economy has still been able to grow despite substantial job cutbacks across the nation.  Productivity of employees has increased 8.1% in the third quarter of 2009. It was also evident that businesses are spending more on technology in order to increase employee productivity.