In the broader economy, manufacturing production in the United States has risen nearly 15 percent since its trough, driven substantially by growth in exports. Indeed, the U.S. trade deficit has been notably lower recently than it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services
Reflecting in much GREATER PART the fact that people who are broke aren't BUYING.
Business investment in equipment and software has continued to expand, and productivity gains in some industries have been impressive, though new data have reduced estimates of overall productivity improvement in recent years.
But no business growth in hiring to accompany these modest plant and equipment investments?
Households also have made some progress in repairing their balance sheets--saving more, borrowing less, and reducing their burdens of interest payments and debt.
Yes, fewer consumers are shooting DEBT amphetimines into their balance sheets, that is true. In part that is because people are fearful of their debts, and in paert that is because people can not longer GET CREDIT.
Commodity prices have come off their highs, which will reduce the cost pressures facing businesses and help increase household purchasing power.
Apparently Ben doesn't BUY food or energy. But the "commodities" that real Americans purchase are seriously NOT "coming off their highs".
Notwithstanding these more positive developments, however, it is clear that the recovery from the crisis has been much less robust than we had hoped. From the latest comprehensive revisions to the national accounts as well as the most recent estimates of growth in the first half of this year, we have learned that the recession was even deeper and the recovery even weaker than we had thought; indeed, aggregate output in the United States still has not returned to the level that it attained before the crisis. Importantly, economic growth has for the most part been at rates insufficient to achieve sustained reductions in unemployment, which has recently been fluctuating a bit above 9 percent. Temporary factors, including the effects of the run-up in commodity prices on consumer and business budgets and the effect of the Japanese disaster on global supply chains and production, were part of the reason for the weak performance of the economy in the first half of 2011; accordingly, growth in the second half looks likely to improve as their influence recedes. However, the incoming data suggest that other, more persistent factors also have been at work.
You mean like the PERSISTENT fact that
real incomes for about 80% of the working popuilation have been declining against inflation since about 1970, Ben?
You don't suppose THAT has anything to do with our currently economy,
do ya, BEN?!?!
Why has the recovery from the crisis been so slow and erratic? Historically, recessions have typically sowed the seeds of their own recoveries as reduced spending on investment, housing, and consumer durables generates pent-up demand. As the business cycle bottoms out and confidence returns, this pent-up demand, often augmented by the effects of stimulative monetary and fiscal policies, is met through increased production and hiring. Increased production in turn boosts business revenues and household incomes and provides further impetus to business and household spending. Improving income prospects and balance sheets also make households and businesses more creditworthy, and financial institutions become more willing to lend. Normally, these developments create a virtuous circle of rising incomes and profits, more supportive financial and credit conditions, and lower uncertainty, allowing the process of recovery to develop momentum.
Perhaps we're looking at a NEW NORMAL, now?
These restorative forces are at work today, and they will continue to promote recovery over time. Unfortunately, the recession, besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis. These two features of the downturn, individually and in combination, have acted to slow the natural recovery process.
I thought we fixed the historical financial crisis, Ben. The banksters are AWASH with dough, thanks to the FED and TREASURY bailing
them the hell out.
Only one problem...we forgot to BAIL out the folks who OWN all that overpriced real estate purchased in the last decade or so.
Gee, Ben...I wonder why
that segment of the economic was abandoned?
I won't go on with this analysis.
I'm already sick of the FEDERAL RESERVE doublespeak.
And right after his speech:
