The news media and the current administration have put out the word daily that the economy is blooming, booming and beautiful, but is it really?
Economists predicted 2016 would have a 2.9% growth of the economy.
A strong economy with growth would be predicated by job creation. That job creation would have to realistically include living wage jobs, not just service industry jobs. Creation of jobs would cause unemployment to be low. According to the Federal government, the unemployment rate is 5 %.
According to the Gallup Poll that is conducted on a weekly basis, the true unemployment rate is 9.9%, with 45.2% of jobs available to be good jobs. That leaves 54.8 % as poor to fair jobs available. http://www.gallup.com/poll/127541/Job-Creation-Index-Weekly.aspx
When the Recession began in December of 2007, there was much debate about how to start a recovery. In late 2008 the Federal Reserve implemented a bond buying plan called, “Quantitive Easing.” The idea being that this creates a low interest environment and the banks could use this to make loans to businesses and individuals, thereby stimulating the economy. The United States has a consumer driven economy, so it is imperative that the consumers have disposable income in order to increase and grow the economy.
Of course, it didn’t work that way. The banks tightened up their lending policies and took advantage of the opportunity to invest monies for their own profit. This led to the inflation of the stock market, which gives an artificial picture of economic growth.
This made the rich even richer and the poor and middle class were simply left out. The banks were more than happy to lend to high rollers, but the average small business or home buyer were out of luck.
Knowing these facts, it is difficult to see how any “recovery” has taken place.
Another litmus test of the economy is Social Security. That is the payments to retirees and the disabled. This year they were informed that they would receive no cost of living increase.
If this is the case, it must mean the economy is stagnant, sans growth, at a standstill.
Interesting in that the cost of goods necessary to run a household have not gone down, but are constantly going up in price.
Which would explain why Dollar Tree is becoming such a great investment. An investment made by major companies who are profiting off this “Great Recovery.”
Consumers are forced to buy at this type of store, in order to afford the necessities of a household.
To recap, if one is already well off, the Federal Reserve kindly gave you an intense increase in asset availability, credit and wealth.
Most of the “jobs created” are service industry jobs at minimum wage.
Social Security, which is not an entitlement, but money subtracted from a worker’s pay for retirement did not see fit to give a raise to those who paid into it, as the cost of living had not increased, i.e. economy stagnant.
The only businesses that are growing really well are dollar and economy stores.
Is it any wonder that the people of the United States are fed up with the status quo for the last 8 years?
The trumpeting of all the “great economic recovery” is the equivalent of someone urinating down one’s back, swearing that it is raining.
Is anyone listening to the average American?
Certainly not those on the Beltway. They act in their own behalf and self-interests.
Things have got to change or the indomitable American Spirit of the people will entertain the possibility of rising up to see that things swing back in the other direction.
Image: https://www.flickr.com/photos/31923842@N04/3152546190/
