Wonder why a large part of the population is spitting mad? This is a big part of it.
Yet another indictment of Keynesian Kult nonsense. Had we let the markets clear post 2008, the stock market, the housing market, other markets, we would have had robust and real growth in relatively short order. People would have been able to build on honest to goodness, market for-realsies growth. But markets must clear for the economy to heal itself.
Instead we bailed out the banks on Wall Street, the pensioners at the auto plants, and did everything we could to put a floor under housing (which kept people who were looking for deals, and young people, out of the market). Then we started throwing up a scaffolding of new debt built upon the rubble of the crash.
I actually don’t blame Obama for this. (Certainly not entirely anyway.) My bet is that he didn’t really know what was going on in the midst of our most recent downturn and just hoped for the best from his advisors. Unfortunately all of his advisors were big government money printers who had been taught that thinking in the “medium term” was stupid. That the short term was all that mattered.
Well America, had the powers that be thought in the medium-term, or God forbid long-term, we’d have a much healthier economy today. Now is the medium-term.
Instead we’ve got a racially and economically divided country which is exhausted and angry. Congrats.
We just got another extremely disappointing GDP number. It was being projected that U.S. GDP would grow by 2.5 percentduring the second quarter of 2016, but instead it only grew by just 1.2 percent. In addition, the Census Bureau announced that GDP growth for the first quarter of 2016 had been revised down from 1.1 percent to 0.8 percent. What this means is that the U.S. economy is just barely hanging on by its fingernails from falling into a recession. As Zero Hedge has pointed out, the “average annual growth rate during the current business cycle remains the weakest of any expansion since at least 1949″. This is not what a recovery looks like.