The recession (depression) never ended for most people. Those who have access to the financial markets, which have been inflated by the Federal Reserve have done well. The average family in the USA however now operates with 7% less than it did in 2008.
Remember the “green shoots” in 2009 which the Fed promised were just below the surface waiting to pop out? And “Recovery Summer” in 2010? Yeah, those were great. The administration thought that if they could just will it, economic recovery would soon be on the way. If they could just jawbone the economy enough. After all they were applying every Keynesian “solution” in the book on top of all the wishful propaganda. How could they miss?
But they did.
I know people getting by on unemployment, and odd jobs, and whatever else they have to do. These are people who were once solidly in the middle class. I know many families with adult children living at home and families which have taken in parents who could no longer pay the bills. Chances are you know families like this too. There’s a good chance that you are in such a family.
The Great Recession lingers and lingers and lingers, and we’ve almost become used to it.
It’s no coincidence that the system of crony capitalism has expanded greatly since the beginning of the recession. It is both a cause and effect of the continued economic downturn. As government has taken over more of the economy the “haves” have been able to cozy up to the government. To partner with government. To buy the government. To encourage increasingly closed markets which benefit them, and so hurt the majority of Americans who would benefit greatly from freer markets and prices
Times are good for GE, and Goldman Sachs, and JP Morgan. They are senior partners in the economy and they have access to the Fed window. For many Americans however, just having access to this month’s rent is a blessing.
(From Of Two Minds)
In other words, huge leaps in the income and wealth of the top 5% mask the decline of income and wealth of the bottom 95%. Average all wealth and income and it appears that the economy is expanding to the benefit of all, when it fact only the top 5% have escaped the recession; the recession never ended for the bottom 95%.