Where’s the Middle Class ‘Recovery’?
Posted at 9:53 a.m. on Aug. 25
The Guardian: “Most economists, including those of the Federal Reserve, tend to tout that we are in a time of economic recovery. In dense jargon they talk about ‘improving labor market conditions’ (a better job outlook) and use that as a reason to cut down on stimulus efforts.”
“Technically, that is true. The recession ended in 2009. Except, instead of being a healing period, this recovery is leaving a scar on the middle class.”
“The middle class hasn’t experienced the recovery that the mathematical equations of economics says it has. Evidence of that includes high debt, low borrowing, and low wages as well as still-high unemployment and people dropping out of the labor force.”
“Here’s the big secret: the economists really can’t do all that much. They can play with interest rates, or add stimulus measures, but their tools are very limited considering the scale of the US economy, with its moving gears and whistles of small businesses, big banks and giant corporations. Congress could be of some help – with infrastructure investment for instance – but has chosen not to be. CEOs, hoarding cash for their shareholders while cutting costs and jobs, have done close to nothing at all.”