from: http://finance.yahoo.com/news/consumer-confidence-is-at-a-13-year-high-in-america-143433905.html On Friday, the latest consumer sentiment numbers from the University of Michigan released Friday showed that in March confidence rose again, as the index of consumer sentiment rose to 97.6 from a final reading of 96.3 in February. Though just below readings seen in January and February, March’s preliminary reading indicates consumers haven’t been this consistently confident since early 2004. “The overall level of consumer sentiment remained quite favorable in early March due to renewed strength in current economic conditions as well as the extraordinary influence of partisanship on economic prospects,” said Richard Curtin, chief economist for the survey. “The Current Economic Conditions component reached its highest level since 2000, largely due to improved personal finances.” Inside the UMich report, however, there still existed an incredible amount of partisanship among consumers. “Among Democrats, the Expectations Index at 55.3 signaled that a deep recession was imminent,” Curtin said, “while among Republicans the Index at 122.4 indicated a new era of robust economic growth was ahead.”... * * * * * * * * * * * * * * * * * * * * * * * *So folks are happy because they're almost as well off as they were when GW was pres. Note that the pollsters said Dems were unhappy but the vast majority were upbeat. That would mean that Dems are a dwindling minority.
2001 - 2008 Bimbo Bush 2008 - 2016 Obama Very clearly shows the slide down under the special needs president, and the upward rise under Obama.
But there has been an extraordinarily sharp deceleration in productivity growth, which is a function of weakness in private investment caused by the chronic shortfall of aggregate demand relative to the economy’s productive capacity. In other words, businesses are not investing in productivity-boosting equipment because their customers aren’t demanding enough to ensure that the existing productive capacity will be fully used. - Report And that is why cutting taxes for the rich and for businesses will not boost jobs or anything but the wealth and income inequality.
Some have blamed it on the surge in foreign workers--- --and while this may have contributed my personal take is as yours, it's the fact that nobody has any money for investment. Demand's fine; growth in personal spending for consumption has been back up for years now. Raising taxes on the rich to fund give-aways to the poor may have felt good and it bought votes, but it hasn't encouraged the poor to hire new employees or buy productivity improving capital equipment. High taxes on the rich is what made it impossible for the rich to do that.
The wealthy corporate elite have plenty to invest and it is largely in overseas bank accounts. Demand is not "fine" as your chart shows. If consumption was high enough, demand would be high, and there isn't a capitalist alive who would not meet that demand for profit if such a demand existed. It doesn't. And now we are facing a near-term economic crash without having first had a good recovery. So we are looking at serious troubles near-term. Fasten your seatbelt! Cute. But it is merely propaganda that the left or that Democrats want to raise taxes on the rich to fund give-aways to the poor! Yes some programs need funding, but the real need is for funding infrastructure projects to create jobs and reboot the economy that way. That is the Big Flaw in right wing propaganda. The rich will never pour money into capital equipment and production and hire workers just because they have more money. When the top tax bracket was 70% the economy was better than it is now, so that is a bogus theory. Hiring and increases in production happen when there is demand. Without demand goods cannot be sold. And that is where we are: low demand. Yes demand is back up approaching where it was prior to the crash, but that is inadequate in today's capitalism. Demand must be robust to get this economy booming and that isn't going to happen. Capitalism is up against the wall.
Tx much for coming back to me w/ ur econ thots, sharing takes on finance is a great help to me in other work. What I'm seeing is that top rates have fallen steadily since the 1950's (back when the top rate was 91%) while the real GPD per capita (GDP adjusted for inflation and population) has more than tripled. Sure, I can cling to my fondly held beliefs as hard as the next guy but for me ignoring hard cash realities is just too costly.
A real problem is not so much that some ignore realities, but that they deny it. I agree with your stand here.
