The American economy is being propped up by debt, like an addict is propped up with a fix. From Dumpkaine at dumpkaine.com:
(Nothing in this paper should be construed as to advocate violence).
Sadly, after just a few months, the president for whom residents of more than 90% of landmass America voted is no longer the president they elected. But this election highlighted loud and clear the real division among Americans: urban progressives versus everyone else. Look at the map above and see for yourselves. You should be able to name those blue mostly urban areas (and their surrounding bedroom communities). Practically no one is talking about it, preferring to cast it in terms of “coastal versus flyover country”. I believe the problem is urban. When once-productive rural America figures it out, there will be Hell to pay. I think it’s time we examine that.
Americans’ perception of the state of the economy varies greatly. The cities have been the beneficiaries of the new “financialized” economy (which doesn’t make anything), federal trade policies, and federal “recovery” efforts, while the rest of the nation has languished. Why is that?
Some of the economics following might be “review” for some of you. Indulge me. It’ll make sense later.
A bit more information about the economy is in order. First, what’s going on at the federal level? The following chart explains a very basic piece of information about the US economy: Total Public (federal) debt. The grey vertical bands on the chart represent periods of recession, slowdowns in the economy. It is easy to see that, in response to each recession, the federal government increased its rate of debt accumulation, and then maintained the faster debt rate permanently. In other words, after each recession the blue line of federal debt growth gets steeper and steeper. Can you see that?
To continue reading: Flyover America: Can You hear Us Now?