By: Todd Wheatley
(c) IQ-2k   02-29-16

Only in the dreams of the current crop of presidential wannabes who either grew up or were born in that era with the exception of Marco Rubio. In other words the economy of 1950s is long gone. And while an 8% rate of growth remains unrealistic the economy is doing fine ... all things considered.

Famed billionaire investor Warren Buffet weighed in on the economic strength of the U.S. in his meeting with shareholders last month (Feb.2016) noting that the meager U.S. GDP growth (approx. 2%) compared to the population growth (approx. 0.9%) still advanced an impressive rise in wealth per capita over time. Granted I am a big fan of Mr. Buffet, but I would differ somewhat on his views based upon the growing gap in INCOME INEQUALITY.

First I would point to the old joke about the difference between a RECESSION and a DEPRESSION : it's a recession when you are out of work and a depression when I am out of work. Take people in the energy sector, for example. They are likely to say that the economy is way bad. While those in the financial sector would say the economy has been great improved and going well. The truth is: THE ECONOMY IS GOOD!

The United States has had over fourteen months of robust employment gains even though incomes have remained stagnant. The stock market bubble corrected back to a more realistic level and global weakness will keep those numbers steady for awhile. Consequently consumer confidence will not radically improve due to a stock market wealth effect. So without a major pullback in employment the U.S. economy will keep chugging along with anemic growth producing in the range of $18.0 trillion ($17.7 TRILLION 2015 U.S. GDP).

But is that the complete the picture? au contraire! Access to education and healthcare will become such important issues that most people will believe the country is approaching another Great Recession if not an outright depression. By ignoring healthcare and education and putting its sole focus on core inflation the Federal Reserve has done irreparable harm to the economic well being of this country. The asset bubble the Fed has orchestrated over the past 16 years has driven wealth inequality to a tipping point.

(c) 2016    DR-KNOW
IQ-2k Information Services


TOP     HOME
articles     podcasts     videos

Information eQuation (BOOK)
Information eQuation (examples)

EMAIL COMMENTS to DR-KNOW

Please support this web site: give any amount via PAYPAL ("money TRANSFER") to todd@dr-know.biz