Posted on 03/25/2016 8:35:50 PM PDT by 2ndDivisionVet
Why hasn't America's economy recovered more robustly? Economists have an unsettling answer
In the wake of the 2008 financial crisis, conventional wisdom among economists, business leaders, and policy makers was fairly straightforward: Once the banks were bailed out, the stimulus spent, and businesses had a few years to recover, the U.S. economy would return to its usual healthy growth. Time, in other words, would heal the wounds of the subprime collapse and subsequent turbulence. But if any recovery has turned conventional wisdom on its head, it's this one.
Over the last eight years, America's economic prospects have lagged even the most pessimistic early predictions. In 2011, the Federal Reserve predicted that U.S. real GDP would, at worst, grow by 3.5% in 2013 and that the economy would expand between 2.5% and 2.8% annually in the long run. In every year since, the Fed has revised its predictions downward. (The most recent estimate predicts 2.2% annual growth in 2016, and 2% growth in the long run--a rate more than one-third lower than the post-war average.) Even employment, a source of uplifting headlines in recent weeks, is deceptively weak. The unemployment rate--which ignores those who gave up looking for a job--has hit new lows, but the percentage of Americans (between ages 25 and 54) who are actually working is over three points lower than its pre-crisis peak.....
(Excerpt) Read more at time.com ...
I don’t understand.
We raised taxes, opened the border, seized all kinds of private property and implemented all of Marx’s ideas.
Why isn’t our economy better?
It must be racism....
Hah. Your post would be funny if it weren’t so tragic.
It’s probably Bush’s fault that the economy still isn’t better...
The economy has not recovered because all we did was borrow far more to keep it on life support. Quantitative easing has become a normal part of our economy and the corruption associated with it is rampant. Government borrows roughly half of what it spends, state and local governments are fiscally irresponsible, the economy does not grow, regulations and red tape are killing jobs, and people expect a good result?
We are in deep doo-doo based on simple math. Wall Street and the banksters have gone too far. If they turn off the spigot the whole charade collapses. If they don’t turn off the spigot it all collapses later, but everyone can keep partying (for now). Our political leaders have adopted the same strategy.
Mulattoism....
I think I know.
“We are from the Government and are here to help”
and
“If it ain’t broke, we will fix it until it is.”
Those two sentences wrap up the Federal Government in a nut shell.
It is because they placed all the money on Keynesian economics, which didn’t work—and never will—and lost. They blew trillions, and our grandkids have to pay it back.
Complicated, but bottom line is the so-called Keynesian multiplier turned out to be less than 1—as the Austrians predicted (and Friedman, too).
They said every dollar borrowed and spent would contribute more than a dollar to economic growth—that’s Keynesian economic theory. And of course, they were wrong. So borrowed and spent more and more and more, waiting for the magical multiplier (greater than 1) to kick in. But it didn’t, because though it is a real number, it is actually less than 1. Their theory was wrong.
Actual result: Every dollar they borrowed and spent, resulted in less than a dollar of growth. They tanked the economy for over a decade, and now we have to pay it all back. Which we can’t.
The Keynesians in charge bankrupted the USA.
If globalists like cruise have their way, you can count on it.
Mining and manufacturing are the only ways to create wealth other than agriculture. We suck at one and the other has taken a big hit. We are a stupid country run by greedy idiots.
But but but but they all voted for the Messiah and he got the Nobel prize for being black and hope and change racism!
Another attempt by the MSM to make excuses for Obama's failures.
Yet, the brilliant Nobel prize winning economist Paul Krugman, and all of his conceited know-nothing Yes men, repeatedly told us all to place more trust in Keynesian economics, and all would be well.
Effing idiots have done us in according to plan, and we collective dupes are being marched to a Marxist future of no return.
RE: “The Keynesians in charge bankrupted the USA”
Polar bear climate privilege
Intellectual property is used to create a useful product which is then manufactured. So again three ways mining, manufacturing and agriculture. That's it.
The 2008 crash was created by the panic that set in on Wall Street once it became clear that a hardcore communist born abroad was likely to become president. The correct response from the Bush Administration should have been to immediately balance the federal budget, declare almost all federal government regulations null and void and then stand back.
But they took OZero’s advice and passed TARP. After that, it was easier for the Kenyan usurper to finish off the American economy. Things have only gotten worse since then.
Exactly. The Dems knew from the beginning that their sycophants in the mainstream media would contort reality itself to make certain "the historic first black president" was never, ever seen as a failure. If this was a Republican presidency, it would have been hounded out of office by a screaming media within a year.
As a handy recent example, can you imagine the headlines if George Bush had been dancing the Tango while terrorists were laying siege to Brussels?
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