The editors of the Wall Street Journal point out the dog in the manger in the BEA’s latest report on U. S. GDP—we have entered a period of slow or no growth:
The news, which most Americans have long felt in slow-growing wages, is that the worst expansion in 70 years has been even weaker than we thought.
The gnomes at the Bureau of Economic Analysis ran the numbers based on new data and analytical methods and downgraded the recovery since 2011 nearly across the board. From 2011 through 2014, the economy grew at a paltry annual rate of 2%, down from the previous estimate of 2.3%. This means the overall U.S. economy is smaller—with GDP slashed by $105 billion in 2013 and $71 billion in 2014 to $17.35 trillion.
Those numbers are abstractions, but another way to put it is that national income, corporate profits and personal income were all revised down. From 2011 through 2014, the average annual growth of real disposable personal income was slashed to 1.5% from 1.8%. That’s a giant cut in the standard of living.
They also have their preferred strategies for increasing growth:
Freeze and roll back stifling regulation. Reform the tax code to unleash investment and raise wages. Modernize America’s creaky 20th-century public institutions, including health care, and K-12 and higher education. Welcome the world’s most talented immigrants to our shores. And restore monetary policy to its appropriate job of maintaining price stability.
They point out something worthwhile. Nearly 50% of the present economy and most of the growth is in just three sectors: finance, healthcare, and education. That’s a good part of our problem. All three are heavily subsidized which in turn means that their growth has a demand for ever-greater subsidies “baked in”. They also don’t employ 50% of workers which means that they’re engines for income inequality.
Additionally, a grave problem is that neither political party has any coherent plan for fostering growth. But they have fantasies aplenty.
Wow, the economic geniuses at the WSJ think the solution to stagnant wages and low employment is to increase the supply of labor! If they had any decency at all, they’d all kill themselves for being such dishonest sacks of shit looking to screw everyone else at the behest of their lords and masters.
Hey TastyBits, what’s the usual punishment for stoolies and stooges?
More of the same. Reuters is still comforting the powerful and afflicting the weak, though, with claims that the labor market has taken up the slack. No mention at all of participation rates. Fucking bastards.
We’re cruel. We usually elect them to higher office.
I know this will subject me to ridicule, but if we could just minimize the meddling for a couple years and let market participants sort things out I bet we’d be better. Off. The wise men of government sure don’t seem to be effective.
Fat chance. And this isn’t partisan crap. This character McConnell should be taken out behind the barn and…….well. Anyone driven through KY lately? I have. Mitch is getting his pork……….
…” but if we could just minimize the meddling for a couple years …”
Ah, you must be one of those free-market guys, who has been put into the time-out box, because it’s the never-been-in-business guys who know so much more in how to manage business!