Saturday, April 19, 2014

Can’t say this to voters about the economy: "recovery"

From Yahoo Finance:

You can point out how rich the 1% are, or pound home how hard it is to keep up these days. But whatever you do, don’t act like there’s a “recovery.”

That’s the advice from a prominent public-policy firm to Democratic politicians running for reelection this year...

By some measures, the economy is getting back to normal....

But the various pieces of the economy don’t fit together now the same way they did before the recession hit at the end of 2007, with fewer people taking part in economic gains.

Total employment is still about 400,000 jobs short of the 2008 peak, and that’s with a larger population now.

The stock market has regained all its losses and hit record highs, which benefits people with big investments, but homes are still below the peak values of 2006, leaving many middle-class homeowners underwater.

And it seems clear top earners are now capturing a greater portion of all income, while the middle class is shrinking.

That makes aggregate wealth and income numbers look better than they really are.

A lot of ordinary people know this intuitively, which is why politicians risk alienating voters by touting a recovery many people don’t feel....
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Link: http://finance.yahoo.com/blogs/the-exchange/one-thing-you-can-t-say-to-voters-about-the-economy-183830377

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