No one thought the economy under President Obama was doing well – except for Obama and his sycophants. It cost the Democrats an election. But evidence is compiling that indicates things were worse than the government said they were. Mirabili dictu!
[Source: U.S. Economy: No Recovery, by Jim Clifton]
The U.S. Council on Competitiveness asked Gallup to conduct a comprehensive study of U.S. growth and productivity for the Council’s 30th anniversary. They agreed to do it – pro bono. No one would make the argument that Gallup is a conservative group. I generally have high regard for their polling. Now I have high regard for their economic analysis.
The study was conducted by a senior economist on the Gallup staff. However, Gallup sought and obtained confirmation of their results from external experts and scientists. These outside experts confirmed the Gallup study’s statistical and theoretical accuracy and objectivity.
If the economy is “recovering” one must presume the economy is strengthening.
[From the Clifton article] …Well-meaning economists, academics and government officials use the term “recovery” when discussing the economy, implying that growth is getting stronger.
The study, released today, finds there is no recovery. Since 2007, U.S. GDP per capita growth has been 1%.
The Great Recession may be over, but America is dangerously running on empty.
Think of our country as a company, America Inc., which has more than 100 million full-time employees, with about $18 trillion in sales and $20 trillion of debt. The most serious problem facing it is no growth. In addition, America Inc. has three soaring expenses threatening to bankrupt the company and its shareholder-citizens: healthcare, housing and education.
As this report notes, in 1980, these three sectors accounted for 25% of total national spending — today, they account for more than 36%. They also account for most of the total measured inflation over the same period. And without inflation in these sectors, real annual productivity — defined as GDP per capita growth — would have been an estimated 3.9% instead of 1.7%.
President Obama is not the only reason for these statistics. However, Progressive/ Statist/Altruist policies are.
Three large sectors as noted above bear primary responsibility for the malaise: healthcare, housing and education. The costs to both national and per capita GDP are enormous.
As the costs of these services rise, the value they generate — in terms of health, learning and shelter — has stagnated or even declined. When the quality-to-cost ratio falls, living standards do as well.
It is my contention that the federal government, via Progressive/Statist/Altruist policy, has mucked up these sectors of our economy.
As my readers know, I have backed Mr. Trump. I backed him because I believe there is a chance he can turn this around. But I, and all of my readers, will be watching carefully to see if he is capable of doing this.
His job will be similar to that of the Captain of an aircraft carrier – our economy is more like an aircraft carrier than a Ferrari. The Captain must plan to turn an aircraft carrier. It can’t be done quickly. So, I will give him some time to see how he handles the rudder.
And thanks to HP for sending this to me.