Thread: The strongest economy in the world

Imo, its not about anti-anything. Not anti-BO, nor anti-american. Just calling BS on the lies by BO and the MSM. Nobody expects 7% growth.

Originally Posted by Black Heart

Nobody expects 7% growth.

So, 2% for a fully industrialised economy is unacceptable or you just don't believe the stats?
If real, then I think 2% is quite good, really

Originally Posted by Black Heart

Imo, its not about anti-anything. Not anti-BO, nor anti-american. Just calling BS on the lies by BO and the MSM. Nobody expects 7% growth.

If Ronald Maximus was back in Big White we'd have that 7% growth.

Is that the racist, gay flag?

Originally Posted by Boon Mee

If Ronald Maximus was back in Big White we'd have that 7% growth.

We'd also have 13% home mortgage loans.

Originally Posted by mindgames

Is that the racist, gay flag?

Not gay not racist. Stick to topic, please.

This is worthy of a read. Again, it's not about the President in office at the moment, or the party(ies) in control, nor is it about the candidates running for election.

The Obama economy has problems. Does the GOP have answers?

Even though the economy is way ahead of where it was four years ago, Americans aren't happy. Half of the country flat out disapproves of how the president is handling the economy, according to recent Wall Street Journal/NBC poll.

Even more alarming is the return of pessimism. Take a look at Gallup's U.S. Economic Confidence Index. It's measured weekly, and the first August reading is negative -- the lowest since last October. The jitters are back.

Americans don't feel good about their pocketbooks, yet the campaigns don't seem to get it yet.

Gloomy outlook: This isn't 2008. America is no longer in the Great Recession. People aren't losing their homes like they were, and a lot of people have jobs again. That's why unemployment fallen to 5.3% -- not far from what economists say is normal.

The problem now isn't that the economy is at a dead stop. It's that it's walking instead of sprinting. Too many people don't feel that they can get ahead. They are working again, but they feel stuck -- and they think their children will be even worse off. Nearly two-thirds of Americans surveyed by Pew Research believe kids today will grow up to be in poorer financial shape than their parents.

To steal Paul Krugman's term from 1990s, it feels like we're in the "Age of Diminished Expectations.

The big issues: to look at real people economics now, look at three factors.

1) People aren't earning more than they did in 1995

Family incomes -- what data crunchers call "household incomes" -- in the United States are the same now as they were in 1995 after you adjust for inflation. That means that the typical family isn't really any better off now than 20 years ago, despite having jobs. It goes to the heart of why there's so much interest in the minimum wage and inequality issues in this election.

2) Too many part-time jobs

Yes unemployment has fallen a lot since President Obama took office, but America has a "hidden unemployment" problem. Over 6.5 million people work part-time jobs but want full-time jobs. That's much higher than the roughly 4.5 million part-timers before the Great Recession began.
The best "minimum wage" increase of all would be to get a lot of these part-time workers back to full-time employment -- and the salaries and benefits that often come with it. Part-time workers are five times more likely to live in poverty than their full-time peers.

3) People aren't buying things

Americans have a reputation for being big spenders, yet the numbers show they are still in a Recession Hangover and aren't spending like they once did. That's a real problem since the U.S. economy is based about 70% on consumption (aka people buying things). It reflects how people are nervous about the future. The annual savings rate, now over 5%, is significantly higher than the pre-recession norm of around 3%, according to the Federal Reserve.
Economists kept thinking spending would pick up, especially with gas prices so low. But it's not happening, another sign of the deeper fears.
No, it's not a terrible economy anymore. The U.S. is growing again (better than Europe and Japan). But the feeling on both sides of the political aisle -- and certainly on Main Street -- is we can do better.

Even on Wall Street and at the Federal Reserve, the experts were predicting much stronger growth in 2015 (near 3% for GDP this year) than what's turning out to be the case. (It's more like 2% to 2.5%).

The Obama economy has problems. Does the GOP have answers? - Aug. 6, 2015

Originally Posted by Black Heart

This is worthy of a read. Again, it's not about the President in office at the moment, or the party(ies) in control, nor is it about the candidates running for election.

The Obama economy has problems. Does the GOP have answers?

Even though the economy is way ahead of where it was four years ago, Americans aren't happy. Half of the country flat out disapproves of how the president is handling the economy, according to recent Wall Street Journal/NBC poll.

Even more alarming is the return of pessimism. Take a look at Gallup's U.S. Economic Confidence Index. It's measured weekly, and the first August reading is negative -- the lowest since last October. The jitters are back.

Americans don't feel good about their pocketbooks, yet the campaigns don't seem to get it yet.

Gloomy outlook: This isn't 2008. America is no longer in the Great Recession. People aren't losing their homes like they were, and a lot of people have jobs again. That's why unemployment fallen to 5.3% -- not far from what economists say is normal.

The problem now isn't that the economy is at a dead stop. It's that it's walking instead of sprinting. Too many people don't feel that they can get ahead. They are working again, but they feel stuck -- and they think their children will be even worse off. Nearly two-thirds of Americans surveyed by Pew Research believe kids today will grow up to be in poorer financial shape than their parents.

To steal Paul Krugman's term from 1990s, it feels like we're in the "Age of Diminished Expectations.

The big issues: to look at real people economics now, look at three factors.

1) People aren't earning more than they did in 1995

Family incomes -- what data crunchers call "household incomes" -- in the United States are the same now as they were in 1995 after you adjust for inflation. That means that the typical family isn't really any better off now than 20 years ago, despite having jobs. It goes to the heart of why there's so much interest in the minimum wage and inequality issues in this election.

2) Too many part-time jobs

Yes unemployment has fallen a lot since President Obama took office, but America has a "hidden unemployment" problem. Over 6.5 million people work part-time jobs but want full-time jobs. That's much higher than the roughly 4.5 million part-timers before the Great Recession began.
The best "minimum wage" increase of all would be to get a lot of these part-time workers back to full-time employment -- and the salaries and benefits that often come with it. Part-time workers are five times more likely to live in poverty than their full-time peers.

3) People aren't buying things

Americans have a reputation for being big spenders, yet the numbers show they are still in a Recession Hangover and aren't spending like they once did. That's a real problem since the U.S. economy is based about 70% on consumption (aka people buying things). It reflects how people are nervous about the future. The annual savings rate, now over 5%, is significantly higher than the pre-recession norm of around 3%, according to the Federal Reserve.
Economists kept thinking spending would pick up, especially with gas prices so low. But it's not happening, another sign of the deeper fears.
No, it's not a terrible economy anymore. The U.S. is growing again (better than Europe and Japan). But the feeling on both sides of the political aisle -- and certainly on Main Street -- is we can do better.

Even on Wall Street and at the Federal Reserve, the experts were predicting much stronger growth in 2015 (near 3% for GDP this year) than what's turning out to be the case. (It's more like 2% to 2.5%).

The Obama economy has problems. Does the GOP have answers? - Aug. 6, 2015

Trickle down economics at it's best. The US economy relies on spending, yet the rich are nicking ever more of the money.

Originally Posted by harrybarracuda

Trickle down economics at it's best. The US economy relies on spending, yet the rich are nicking ever more of the money.

I don't see this as a part of "Trickle Down" (IMO, it was an is actually "Trickle Up")

I see this as the economy based on a bad economic model: heavy reliance on consumer spending. Buying buying stuff, and often buying stuff with credit cards.

Lots of part time jobs - can't make a living on them.

Low wages.

Here's a report. the USA used to be at the top of the OECD list of women in the workforce; now it's at the bottom.

The number of women not in the labor force reached a record high in July, according to data released Friday by the Bureau of Labor Statistics.

According to the BLS, 56,209,000 women aged 16 and older were not participating in the workforce in July, besting April’s record of 56,167,000 women who were neither employed nor had made a specific effort to find work in the four weeks prior.

July’s figures represented an uptick of 124,000 over June’s level of 56,085,000 women who were out of the workforce.

The civilian labor force also shrank for women last month from 73,547,000 in June to 73,528,000 in July. The labor force participation rate for women, meanwhile, remained the same at 56.7 percent.

Of those women considered to be in the workforce, 69,638,000 had a job and 3,891,000 were unemployed. The unemployment rate for women was 5.3 percent in July, up slightly from June’s 5.2 percent.

The month of July also saw a record 93,770,000 Americans not participating in the labor force.

Record 56,209,000 Women Not in Labor Force - Breitbart

By David Stockman, a former Administration official. The chart below tells what people in the US have been starting to understand in recent years.

Comparing the cost of living between 1975 and 2015: You are being lied and fooled when it comes to inflation data and the cost of living.


Inflation is widely misunderstood by the public. Even economists tend to have a hard time coming to a general agreement to the true definition of inflation. When you ask the person on the street what inflation is they usually respond by saying the “price of things going up” which is more of a consequence of inflation, rather than the cause. Inflation is like a new car that lacks maintenance.

At first, there is little notice of the issue but overtime major problems start occurring and eventually the car breaks down. If you want to see inflation out of control just look at Venezuela right now where people are swarming stores for basic food items. In the US inflation has occurred primarily because of the Federal Reserve’s banking policy. Too much cash (or debt in this case) chasing the same amount of goods.

Only when we look at longer periods of time do we see the insidious nature of inflation. Yet somehow, the data used to measure inflation misses much of what is happening because it uses derivative like measures. For example, we use the owners’ equivalent of rent (OER) instead of the true monthly cost of owning a home. Let us take a look at some data between 1975 and 2015.

The cost of living shuffle

We continually hear about the middle class shrinking. But where are they shrinking to? Much of the disappearing act has come at the hands of inflation. That is, their income is no longer sufficient to support the items that we once categorized as part of the middle class: a car, a home, college education for the kids, and basic healthcare. For many Americans, these items are all getting out of reach. And for those that purchase them, they are required to go into massive debt with banks.
There is an interesting chart looking at the cost of items in 1975 versus today:
cost of living chart

Source: David Stockman

This is a very telling chart. First, let us look at the biggest line item with housing. A new home today costs $270,200. That 1975 home adjusting for inflation would cost $209,417. This is a “real” increase of 29 percent. A new car costs $31,252 while that 1975 car adjusting for inflation would cost $16,578. This is a true doubling of cost here. Public college costs are up over 150% while private college costs are up over 160%. And you wonder why we have over $1.3 trillion in student debt outstanding.

What is more affordable relative to inflation? Milk, eggs, and a postage stamp. Unfortunately these are tiny line items on your household budget.
What you need to look at is the median income here. US households overall are simply poorer. They have less to spend relative to the cost of goods and services. Money is only as good as what it can purchase. You can’t eat hundred dollar bills. This is part of the reason why many people feel like they are poorer. It is also a big reason as to why the homeownership rate continues to fall.

Comparing the cost of living between 1975 and 2015: You are being lied and fooled when it comes to inflation data and the cost of living.

$15 Minimum Wage Causes Seattle Restaurants To Suffer Worse Job Loss Since Great Recession



"According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurants to lose 1,000 jobs — the worst decline since the 2009 Great Recession.

“The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession,” AEI Scholar Mark J. Perry noted in the report.

The citywide minimum wage increase was passed in June of last year. The measure is designed to increase the city minimum wage gradually to $15 an hour by 2017. The first increase under the plan was to $11 an hour in April. According to the report, Seattle restaurants have already faced severe consequences as a result. In contrast, in the six years since the 2009 financial crisis, the industry has been recovering in areas without the $15 minimum wage."

Why Did Seattle Restaurants Lose 1,000 Jobs? Report Blames The Minimum Wage | The Daily Caller

Sounds like some of that Bernie Sanders economic policies going to work there, eh?

^ Boon,

This is from the AEI,

We need hard data and proof that the wage increase WAS THE REASON OR SOLE REASON.

There has been false reporting on this.

I'll google now.

I think that it's to early to tell what the effect, if any will be on the minimum wage increase.

And, $15 gross per hour in Seattle is a bare-survival wage.

Go European model. It works in US just like it worked in europe. Thanks Mr. B and Hollande special partnership

Originally Posted by Boon Mee

$15 Minimum Wage Causes Seattle Restaurants To Suffer Worse Job Loss Since Great Recession



"According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurants to lose 1,000 jobs — the worst decline since the 2009 Great Recession.

“The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession,” AEI Scholar Mark J. Perry noted in the report.

The citywide minimum wage increase was passed in June of last year. The measure is designed to increase the city minimum wage gradually to $15 an hour by 2017. The first increase under the plan was to $11 an hour in April. According to the report, Seattle restaurants have already faced severe consequences as a result. In contrast, in the six years since the 2009 financial crisis, the industry has been recovering in areas without the $15 minimum wage."

Why Did Seattle Restaurants Lose 1,000 Jobs? Report Blames The Minimum Wage | The Daily Caller

Sounds like some of that Bernie Sanders economic policies going to work there, eh?

Originally Posted by Exit Strategy

Go European model.

You don't care about Europe but mention the place in every one of your odd posts . . . Gud Yes?

Jim Rogers on the US and the world:

https://www.youtube.com/watch?t=542&v=3wvQDxJPhQ4

https://www.youtube.com/watch?t=542&v=3wvQDxJPhQ4

Originally Posted by panama hat

Originally Posted by Exit Strategy

Go European model.

You don't care about Europe but mention the place in every one of your odd posts . . . Gud Yes?

Minimum wage in US is European influence, so it is rather correct to mention it.

What is your problem again? I have no clue why you keep speaking to me in Afrikaans or what it is? If you have mental problems go to dreamworld Europe I'm sure they'll sort you out for free. Not...

Troll

Originally Posted by Exit Strategy

Minimum wage in US is European influence, so it is rather correct to mention it.

Despite you not mentioning or being interested in Europe . . . Yes? Dobje.

Originally Posted by Exit Strategy

I have no clue why you keep speaking to me in Afrikaans or what it is?

Afrikaans I can speak, but I'm not too good at Serbian, Croatian or whatever Balkan shithole you emerged from - even if you pretended to be 'Dutch'

Originally Posted by Exit Strategy

If you have mental problems go to dreamworld Europe

Ah, the 'Europe' again. Luckily you never mention it. But: Europe got gud pasport. Yes?

Debt Levels:



Auto Loan Debt Tops $1 Trillion For First Time; All Consumer Debt Nearing $12 Trillion ? Consumerist

Get a job as a Repo Man if you want steady work...

So, which you're-a-peein' country has this bustling economy based on the miracle of a high minimum wage? Greece?

I think every burger flipper in the world should be granted a $100,000 per hour wage just so the business bashers would have to admit what happens when you tell a businessman how much his payroll has to be instead of letting him decide how much it can possibly withstand.

In a free economy (which a successful one must be) people won't work unless wages are up to a certain point, and businesses won't hire if they get above a certain point, and somewhere in between is the market rate which is acceptable.

When government skews that market influence without regard for what the market can bear you get high inflation which puts the guy on the bottom right back on the bottom. You can also get high job losses which will really put the guy on the bottom there for good.

There are many reasons why people choose to rent or have to rent instead of buy. With such a large amount of disposable income going to pay rent it's less money to spend in this consumer-dependent economy and less money to save for individuals and families.


Renting in America Has Never Been This Expensive
Los Angeles residents are now spending half their income on rent
Prashant Gopal
August 13, 2015

Americans living in rentals spent almost a third of their incomes on housing in the second quarter, the highest share in recent history.

Rental affordability has steadily worsened, according to a new report from Zillow, which tracked data going back to 1979. A renter making the median income in the U.S. spent 30.2 percent of her income on a median-priced apartment in the second quarter, compared with 29.5 percent a year earlier. The long-term average, from 1985 to 1999, was 24.4 percent.

While mortgages remain relatively affordable, landlords have been able to increase rents because demand for apartments remains strong. The U.S. homeownership rate fell to the lowest level in almost five decades in the second quarter, as strict lending standards and tight inventories keep many families in the rental market.

Rental affordability worsened from a year earlier in 28 of the 35 largest metropolitan areas covered by Zillow. Rents were least affordable in Los Angeles, where residents devoted 49 percent of monthly income to rent. The share in San Francisco was 47 percent, 45 percent in Miami, and 41 percent in the New York metro area.
Meanwhile, historically cheap mortgage rates are keeping the cost of homeownership low. Buyers in the U.S. devoted 15 percent of their income to mortgage payments, which is less than the historical average of 21 percent. Exceptions include the Silicon Valley area in California, where homeowners and renters each devote 42 percent of income to housing costs.

Renting in America Has Never Been This Expensive - Bloomberg Business

Originally Posted by JBaker

So, which you're-a-peein' country has this bustling economy based on the miracle of a high minimum wage? Greece?

I think every burger flipper in the world should be granted a $100,000 per hour wage just so the business bashers would have to admit what happens when you tell a businessman how much his payroll has to be instead of letting him decide how much it can possibly withstand.

In a free economy (which a successful one must be) people won't work unless wages are up to a certain point, and businesses won't hire if they get above a certain point, and somewhere in between is the market rate which is acceptable.

When government skews that market influence without regard for what the market can bear you get high inflation which puts the guy on the bottom right back on the bottom. You can also get high job losses which will really put the guy on the bottom there for good.

Well, if these boys could strike up a good rendition of Kum Baa Yaa, that might make 'em feel a little better about their Marxist philosophy.

Wrong side of history and totally wrong on the manner in which people interact to advance themselves beyond the Collective!

More....signs of things to come?

Empire State index tumbles to recession-era levels

Published: Aug 17, 2015


Empire State index tumbles to recession-era levels - MarketWatch

The Chinese will rise their interest rates, yes?