Friday, March 29, 2024
 
Seven Years Later, US Economy on New, Uncharted Ground

WASHINGTON, D.C. Oct. 6 (DPI) – The U.S. economy today remains propped up by credit-fueled government spending  and zero-interest rates, a form of public support that Capitol Hill, Wall Street and The Federal Reserve alike have little interest in disturbing, independent economists say.

And the implications of that shift – of an economy no longer cued by market forces and market-price information, and shed of dynamic initiative – suggest Americans will face languid growth and unprecedented volatility for years to come.

Moreover, as older citizens become resigned to low fixed returns and younger people, with fewer opportunities, jockey for the perceived security of public-sector jobs, all Americans face lower living standards. Economists worry about a frightening psychological shift in Americans, who may no longer feel they can accomplish anything on their own.   Business creation in America is at its lowest point in 40 years:

http://www.brookings.edu/research/papers/2014/05/declining-business-dynamism-litan

Worst of all, US Social Security and Medicare/Medicaid programs are on a collision course with insolvency, thanks in large part to feckless lawmakers still unwilling to fix the problem, virtually guaranteeing that major upheavals lie ahead.

Some economists say while Congress has long enjoyed promising and doling out benefits to constituents, now The Federal Reserve seems to be basking in its expanded role as director of the US economy. Both have an interest now in promoting a narrative that everyday Americans need the US government’s expanded role in the economy, which means that the US economy “will stay, at least in the eyes of policymakers, in a never-quite-robust status,” as one economist put it, and thus always needing government support..

http://davidstockmanscontracorner.com/bernankes-balderdash/?utm_source=wysija&utm_medium=email&utm_campaign=Mailing+List+Mid+Day+Thursday

https://www.washingtonpost.com/opinions/the-global-economy-is-in-serious-danger/2015/10/07/85e81666-6c5d-11e5-b31c-d80d62b53e28_story.html

 

 

Advertisements

Click Here!