hvactec
VIP Member
Rarely in history has the cause of a major economic problem been so clear yet have so few been willing to see it.
The major reason this recovery has been so anemic is not EuropeÂ’s debt crisis. ItÂ’s not, as right-wing economists tell us, because taxes are too high on corporations and the rich, safety nets are too generous to the needy, and regulations on business are too onerous. ItÂ’s not even, as some liberals contend, because the Obama administration hasnÂ’t spent enough on a temporary Keynesian stimulus.
The answer is in front of our faces. It’s because American consumers, whose spending is 70 percent of economic activity, don’t have the dough to buy enough to boost the economy — and they can no longer borrow like they could before the crash of 2008.
If you have any doubt, just take a look at the Survey of Consumer Finances, released last week by the Federal Reserve. Median family income was $49,600 in 2007. By 2010 it was $45,800 — a drop of 7.7 percent.
All of the gains from economic growth have been going to the richest 1 percent —
read more http://www.desmoinesregister.com/ar...S-economy-can-t-get-out-of-first-gear?Opinion
The major reason this recovery has been so anemic is not EuropeÂ’s debt crisis. ItÂ’s not, as right-wing economists tell us, because taxes are too high on corporations and the rich, safety nets are too generous to the needy, and regulations on business are too onerous. ItÂ’s not even, as some liberals contend, because the Obama administration hasnÂ’t spent enough on a temporary Keynesian stimulus.
The answer is in front of our faces. It’s because American consumers, whose spending is 70 percent of economic activity, don’t have the dough to buy enough to boost the economy — and they can no longer borrow like they could before the crash of 2008.
If you have any doubt, just take a look at the Survey of Consumer Finances, released last week by the Federal Reserve. Median family income was $49,600 in 2007. By 2010 it was $45,800 — a drop of 7.7 percent.
All of the gains from economic growth have been going to the richest 1 percent —
read more http://www.desmoinesregister.com/ar...S-economy-can-t-get-out-of-first-gear?Opinion
