There’s a real economy out there that’s a lot different, and worse off, than the one suggested by Washington’s statistics. From MN Gordon at economicprism.com:
One of the more disagreeable discrepancies of American life in the 21st century is the world according to Washington’s economic bureaus and the world as it actually is. In short, things don’t add up. What’s more, the propaganda’s so far off the mark it’s downright insulting.
The Bureau of Labor Statistics (BLS) reports an unemployment rate of just 3.7 percent. The BLS also reports price inflation, as measured by the consumer price index (CPI), of 1.8 percent. Yet big city streets are lined with tents and panhandlers grumble “that’s all” when you spare them a dollar.
In addition, good people, of sound mind and honest intentions, are racking up debt like never before. Mortgage debt recently topped $9.4 trillion. If you didn’t know, this eclipses the 2008 high of $9.3 trillion that was notched at the precise moment the credit market melted down.
Total American household debt, which includes mortgages and student loans, is about $14 trillion – roughly $1 trillion higher than in 2008. Credit card debt, which is over $1 trillion, is also above the 2008 peak. To be clear, these debt levels are not signs of economic strength; rather, they’re signs of impending disaster. Moreover, they’re signs that American workers have been given a raw deal.
How is it that the economy’s been growing for a full decade straight, but the average worker’s seen no meaningful increase in their income? Have workers really been sprinting in place this entire time? How did they end up in this ridiculous situation?
