Wednesday, June 26, 2019

the economy isn't doing near as well as your tv tells you and pcr, a former member of reagans treasury tells you about it here;


The Diminishing American Economy
Paul Craig Roberts
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Since June 2009 Americans have lived in the false reality of a recovered economy.  Various fake news and manipulated statistics have been used to create this false impression.  However, indicators that really count have not supported the false picture and were ignored.
For example, it is normal in a recovering or expanding economy for the labor force participation rate to rise as people enter the work force to take advantage of the job opportunities.  During the decade of the long recovery, from June 2009 through May 2019, the labor force participation rate consistently fell from 65.7 to 62.8 percent.  https://www.bls.gov/charts/employment-situation/civilian-labor-force-participation-rate.htm 
Another characteristic of a long expansion is high and rising business investment. However, American corporations have used their profits not for expansion, but to reduce their market capitalization by buying back their stock.  Moreover, many have gone further and borrowed money in order to repurchase their shares, thus indebting their companies as they reduced their capitalization!  That boards, executives, and shareholders chose to loot their own companies indicates that the executives and owners do not perceive an economy that warrants new investment. 
How is the alleged 10-year boom reconciled with an economy in which corporations see no investment opportunities?..........https://www.paulcraigroberts.org/2019/06/25/the-diminishing-american-economy/

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