A post mortem on the recent election in Virginia revealed that the economy weighs heavily on the minds of Virginians, and concerns about jobs, taxes and the like helped fuel the landslide victory of Gov.-elect Bob McDonnell and his running mates.

Whether our economy is headed in the right direction remains open to debate, as mixed signals on its health continue to come in. Late last month, it was reported the economy grew at 3.5 percent in the third quarter, which The Associated Press noted was the first quarterly increase in more than a year.

Some hailed the results as an indicator the economic stimulus plan was working its magic, as “Cash for Clunkers” bumped auto sales and first-time home buyers moved to take advantage of an $8,000 tax credit. Pundits argued that these results were temporary and did not represent the economic growth necessary to move us out of the deep recession that has gripped our nation.

One year after the effective crash of the nation’s financial system, taxpayers have ponied up billions of dollars to bail out Wall Street and Detroit with mixed results.

For investors, there has been good news so far this year, after crashing off of an October 2007 high, the Dow Jones industrial average closed Thursday over 10,000, which reflects a 14 percent gain since the end of 2008.

But on Nov. 6, the Labor Department released its latest bit of grim news, noting that the nationwide unemployment rate had passed 10 percent for the first time since 1983. According to the report, nearly 16 million Americans are out of work and a net 190,000 jobs were lost last month.

For those 16 million Americans, the growing economy and rising stock market mean little to nothing. And, until the United States shows meaningful gains in job creation and sustained growth in the housing market, we remain skeptical about the extent of the recovery.

The Obama administration is reeling from the revelations that claims of job creation by the stimulus were highly exaggerated, and the American people seem to be losing patience with government’s results versus its claims on how it will fix the morose job market.

In an effort to continue to jump start the housing market, Congress voted to extend and expand incentives for home buyers. The president signed the bill on Nov 6. It extends to to first time home buyers a credit of $8,000 well into next year, and adds a $6,500 credit for some purchasers who have owned their homes for at least five years. This is good news for the real estate industry and should continue to have a positive impact.

But, to get to the root of our economic woes, private businesses must lead the way. The government cannot fix everything and frankly has a record of more often doing more harm than good. Lower taxes and less regulation provide incentives for businesses to invest and expand. That is what will get us going in the right direction for the long haul.

We hope Mr. McDonnell and those he picks for important posts in his administration recognize this, and that on a statewide level, at least, government becomes part of the solution by helping businesses, not getting into their business.