Tuesday, May 27, 2014

It's Still The Economy Stupid!

With scandal after scandal, each one worse than the one before, it is hard to keep sight of the fact that the poor abused American economy is still dragging across the bottom of Dismal Swamp. Thanks to the kind ministrations of little Timmy Geithner, big Ben Bernanke, grandmotherly Janet Yellen, and John Maynard Keynes, it is not about to improve soon.

I'd like to pour more blame for this condition on Barack Obama, he's earned his share, but those others are professional economists. They know better. They have done what they have done for purely political reasons. They know that Obamanomics is a disaster so they are shoring up the stock market to provide cover and an illusion of success.

The rich are doing fine. Their stocks keep hitting new records. The middle class and poor continue to suffer. The administration brags, they love to brag, about how many jobs they have created. They do not mention that most of those jobs are either low paying service jobs or part time. And, at that, fewer jobs are created than are lost.

To under stand where employment stands, one must look at the Participation Rate. That is the percentage of available adults that are actually employed. Right now that stands at about 68%. That means that 1/3 of the available population is not working. This is the worst rate since Jimmy Carter was in office. 

It is no wonder that middle class salaries are down 9% and 20% of American households have no income from employment. On top of this inflation is up. No, not official inflation, as figured by the government bean counters. Food prices are up. They don't count that. Fuel prices are up. They don't count that. Health care cost is up. They don't count that, either. 

On top of that, with the Fed program of Quantitative Easing, printing money, and forcing interest rates to an all time low, we still have the pressure of the Bernanke Bubble building up putting the whole economy in danger.

The economy is sick. Very sick. Those charged with it's care are lost in an ideological morass. They cannot fix what they cannot see. And it's still the economy............

1 comment:

  1. We are assuming that they want to "fix" it but just haven't come across a good solution despite their best, if misguided efforts. I maintain that we are headed in the exact direction they want: a tiny, wealthy, permanent ruling class with everyone else as docile, overworked peons struggling day-to-day to get by with government handouts. They have no intention of "fixing" it in the sense that a productive, middle class person would consider it being fixed.