Of course the mainstream media continues to push the perception that the U.S. economy is in “recovery mode”, but the truth is that this current era has far more in common with the Great Depression than it does with times of great economic prosperity.
See the article. Average US GDP growth for 1930 through 1939 is the same as it was in 2007 through 2016: both were 1.33%. Given that the population and productivity growth combined are about 3% per year, this is going persistently backwards. No wonder the middle class are suffering, and are voting in revolt. Economic malaise has been the rule in the West for a decade now — except for the Japanese, whose bubble busted in 1990, it is 25 years and counting.
But even though we have been adding more than a trillion dollars to the national debt each year, and even though the Federal Reserve pushed interest rates all the way to the floor during the Obama era, the U.S. economy has not grown by three percent or more on an annual basis since 2005. …
But you don’t hear any talk like this on the mainstream news, do you?
Instead, they tell us that everything is just peachy.
Everything is peachy for the top 1%, who include those who run the media, the bankers, the top bureaucrats, etc.
I often wonder what things would be like right now if Barack Obama and his minions in Congress had not added more than 9 trillion dollars to the national debt. By stealing all of that money from future generations of Americans and spending it now, Obama was able to artificially prop up the U.S. economy. If we were able to go back and remove 9 trillion dollars of government spending from the economy over the past 8 years, we would be in a rip-roaring economic depression right now. …
Since the GFC hit in 2007, western economies have been in stasis, with central banks pumping in just enough liquidity merely to prevent general economic collapse under the weight of the record breaking debt that was run up in the preceding bubble of 1982 to 2007.
In the last ten years Australia’s growth has been positive — indeed, Australia is just now setting a record for the longest period without a recession for a modern western country of 25 years. But it is only because of high immigration levels — also about the highest of any western country ever, on per capita terms. In terms of GDP per capita, for the last decade Australia has been limping along at low or little growth, rolling recessions even.
When you take an honest look at the numbers, there is no way that anyone can possibly claim that the U.S. economy is doing well. The best that you can say is that we have been staving off a complete economic meltdown and another Great Depression, but of course the measures that our leaders have been taking to do this have just been making our long-term problems even worse.
I feel bad for President Trump, because he has inherited the biggest economic mess in U.S. history. When we finally reach the point when it is impossible to artificially prop up the U.S. economy any longer, he is going to get most of the blame, but he won’t deserve it.
Yep. Just in case you haven’t seen it (apologies to regular readers):
To get back to normal levels of money and debt requires major sustained inflation or a very great depression. We will not go forever in stasis with near-zero interest rates.