Fed Poised to Mark the End of an Era
After-tax incomes adjusted for inflation have expanded at a 1.8% annual rate in this expansion, slower than the average rate of 3.3% during the previous three. Had income grown at the historical rates, Americans would have had $1.2 trillion more at their disposal.
“The economy didn’t do great,” said Michael Bordo , an economic historian at Rutgers University in New Jersey. “We had a slow recovery.” Source WSJ 12-16-15
The economy didn’t do great‼️ Bazinga‼️‼️‼️
And why didn’t the economy do great? Is it because Bernie’s billionaires did much better? No‼️ Is it because the system is rigged? No‼️
It is because there was limited focus on growing the economy, because economic uncertainty was not clarified, because more and more regulatory burden has been placed on companies of all sizes, because ideology trumped innovation, because we fail to recognize the structural changes to work in a global environment. Yes‼️‼️ This isn’t 1934 and policies based on that era won’t work.
The federal reserve has stimulated to no end and we had this that was supposed to jump-start things.
And then there is the long-term reality:
Beneath the dry statistics of the latest report from the Bureau of Labor Statistics, we can see that future emerging. Over the next decade, the service sector will provide 95% of all the new jobs. Manufacturing, which shed more than two million jobs between 2004 and 2014, will shrink by an additional 800,000, to only 7% of the workforce. Of the 15 occupations with the most projected job growth, only four ask for a bachelor’s degree; eight require no formal education credentials; nine offer median annual wages under $30,000.
Few Americans know these statistics, but most of them are living the reality they represent. Since the beginning of the 21st century, the economy has ceased to work for households at and below the middle. A recent report from the Pew Research Center finds that the median income for middle-income households is about where it was in 1997. For lower-income households, median income stands where it did in 1996. Source: The Bleak Reality Driving Trump’s Rise