Because it’s an illusion. The economy is only benefiting the very wealthy. The rest of us are getting scraps. Truth is wages have not changed in decades. Meanwhile corporate profits have boomed:
What’s clear is that the stock market is at record highs and many companies are having another very profitable year, yet the share of the economic “pie” going to workers remains at basically a 70-year low. And it does not show any signs of rebounding, even in a hot job market.
“One thing that really troubles me is the pace of wage growth. Workers are getting a smaller cut of what we produce than they used to,” tweeted Betsey Stevenson, associate professor of economics at the University of Michigan. “Everyone thought that a strong labor market would help change that, but worker’s share (compared to profits) of GDP remains stubbornly low.”
Another example proving that the so-called ‘booming’ economy is a myth:
Unemployment is low and the economy is booming, but many Americans are struggling to pay their bills.
A record 7 million Americans are 90 or more days behind on their auto loan payments, according to a study from the Federal Reserve Bank of New York. That number is a million higher than the total at the end of 2010, a time when unemployment rates hit 10% and “delinquency rates were at their worst” notes the Fed.
And it can only get worse with the trade war that has devastated rural America:
According to numbers from the Iowa Farm Bureau, just five years ago in 2013, only four farms declared Chapter 12 bankruptcy. In 2017, the total number of Chapter 12 bankruptcies climbed to 18- the highest total since 2001. Now farmers across the state are left waiting for the market to bounce back, while surviving in the meantime.
“Just like every market does, we’re back on the downturn of prices,” said James Cornelius, a fifth-generation farmer from Bellevue.
Farmers may have tricks of the trade, but it is not a trade secret that it has become more of a financial struggle for agriculture in Iowa over the recent years.
As of this writing the Dow is down almost 500 points (2 percent). But more importantly it’s dropped 1,700 since December 12th. That’s a 6.6 percent decline. The Dow Jones average is now lower than a year ago.
You would think there might be some concern from the media/press. Not so. There is no mention of the slide in MSNBC.com, CNN.com (just an article entitled,
The best way to cut your stock market losses), USAtoday.com, Yahoo.com, FOXNews.com, CBSnews.com, BBCNews.com. And barely any mention in the WashingtonPost.com (1 article, but buried) or News.Google.com (had a mention in the Business section in the middle of the page).
Why? Well, the press can’t chew and walk at the same time. They are totally obsessed with Donald Trump and his legal problems; rightfully so. But there doesn’t seem to be any room for any other major news. And maybe that’s why a stock market collapse is happening.
There is an article if you do a Google search. It’s from the CNN business section:
Mounting global growth fears rippled across Wall Street on Friday.The Dow dropped 497 points, or 2%, on Friday. The S&P 500 declined 1.9%, sinking to the lowest level since early April. The Nasdaq tumbled 2.3%.
Markets were dinged by a batch of negative corporate and economic developments, especially weak growth numbers out of China and Europe.”
Something is wrong here. There is this global slowdown. We can’t deny it,” said Michael Block, market strategist at Third Seven Advisors, a private wealth management firm.
I’ve been predicting a stock market collapse for some time. The speculative casino conditions on Wall St. have not changed from 2007. It is little more than a ponzi scheme. And that scam has been exposed once again. This time there is no bailout. And especially with a madman in the White House.
It’s official, income inequality is not only a social evil but a threat to the economy:
Economic inequality isn’t just an academic idea, as the recent wave of populist voting has made clear. But a new report suggests that worsening inequality in the U.S. could have financial repercussions for the country.
That report, out in early October from the credit-ratings agency Moody’s Investors Service, is called “Government of the United States: Rising income inequality will likely weigh on credit profile.” It may go without saying that when a ratings agency suggests something may “weigh on” a borrower’s credit profile, it’s a warning that a debt downgrade is what’s at risk.