Saturday, December 07, 2013
Why You Think The Economy's So Bad
There are obvious constraints on growth and obvious constraints on saving, which makes it hard for the younger to accumulate savings, and even harder for the older. Getting much in the way of inflation with these income statistics is an impossibility - if prices rise, people are forced to consume less.
Only time can heal this - next year the YoY change will be better, and the five year change will rise to about the 5% level, which would be a big help.
Under such circumstances, the domestic consumption growth is aimed toward necessities and lower priced luxuries. The good news is that the US economy is producing more energy, always produces a lot of food, and gets a decent amount of income off the lower priced luxuries. The bad news is that increases in taxation have the capacity to knock the recovery off its rocker, as do mandates to consumers to purchase services they can't afford, which is just another name for "tax".
This needs to be an ongoing series. New charts and new reasons every week! Don't forget to post a 40+ million missing jobs report every now and then!
Oh, wait. That's what I've been doing on my blog for 6+ years. Never mind, lol. Sigh.
Peak U.S. Public Air Transportation Services
Wges / Disposable Personal Income
The tapeworm hungers!
“There are certain people in whom you can detect the seeds of madness - seeds that have remained dormant only because the people in question have lived relatively comfortable, middle class lives. They function perfectly well in the world, but you can imagine, given a nasty parent, or a prolonged bout of unemployment, how their potential for craziness might have been realized.” ― Zoë Heller
This is all so unfunny that we have to have a good sense of humor about it.
What we need is someone good at photoshop to work with some of the screenshots from "Dune", so the Taperworm can have a public image.
On main street, what I'm hearing about the middle-class housing market is somewhat frightening. Buyers doing 100% LTV, and asking the sellers to pay the closing costs.
We can achieve 2% macro growth as long as the rich get richer at a faster rate than the poor get poorer. ACA seems like a nice way to make the rich richer for the illusion of the poor actually getting health CARE rather than mere health INSURANCE.