Skip to comments.The Unrecovery
Posted on 07/14/2013 9:23:25 AM PDT by Kaslin
On any given evening, I can tune into the news and hear about how we're in the midst of a recovery and how much better we're doing than we used to be. Unfortunately, on doing some research, I found quite the opposite. In fact, there's an excellent reason why this has been called the Great Recession: because there hasn't been a job loss on this magnitude since the Great Depression.
There are a multitude of factors involved in this. One of the more deceitful ones is the proclamations that the recession has ended, which is even evidenced in the official documents from the government. It stands to reason if we're still in recovery, the recession is still continuing, correct? Further is the length of time we've seen a drop in unemployment: previous to the Great Repression, the longest recession to recovery time was 46 months to make a 2% increase in unemployment disappear (this started in 2001) since the Depression. What we're in now has been going on for nearly 70 months and we're still over 2% away from getting back the previous baseline, let alone making any forward movement.
Even more concerning is that the "usual culprits" aren't there. I thought that a drag on the recession might be the increased spending from stimulus packages and the bailouts, but the simple truth is that government expenditures are relatively lower than at almost any point since the turn of the century, with the exception of the spike from the bailouts. In fact the documentation shows that spending is on a decline, although what the money is being spent on has shifted quite a bit in the last few decades. In that same vein, government hiring and jobs are substantially lower than at any time in the last 30 years.
So what is causing this unrecovery? A couple different culprits seem to be in collusion. The economic policies of the government seem to be at fault, but for a pair of things most people would never accuse them of: not spending enough AND giving the money they do hand out to people who need it least. One of the main reasons why WWII is shown as a blue print for economic recovery is because it involved a massive expenditure in hiring that went towards the national infrastructure. That, in turn, put money in the pockets of the middle class and gave them the opportunity to go be consumers, thus propelling the economy along. On the flip side of that, the government has shown itself all too willing to bailout corporations and banks; the problem is that while these entities on occasion have shown need, more often than not, they take the bailout money and use it to line their pocket books and hoard cash instead of the intended usage of expanding their businesses through hiring and expansion. This, in turn, keeps the unemployment rate high while also serving as a false boost when these companies go back to the board room and say "We're back in the black!" This is evidenced by the Dow-Jones reaching record heights, even as the bottom rungs of the ladder are suffering like it is still 2007.
Now, I don't have an answer to the problem of the government and if I did, the NSA probably would have had me shipped to Cuba a long time ago. What I do know is that a government "of the people, by the people, and for the people" seems to have forgotten the people; specifically, the average, every day Joe's who just want to carve out their little piece of the American dream. To that end, I still believe that using rare coins and precious metals to secure and insure the little bit of wealth that the working class can put together is one of the best ways to develop a long term portfolio that will pay dividends in the future. The government has been a net seller of gold while every other country in the world has been buying precious metals up; with the bottom hit, the price of gold is now rebounding and all those nations are seeing profit. Following that lead and investing in rare coins and precious metals is the intelligent, safe decision in this unrecovery.
We do better and make better decisions when we have all the information.
Do that prep work first and we'll see the roadblocks that have been placed in front of US.
Get that crap out of the way and we'll recover just fine all by ourselves, thank you very much.
GTF(fiction) outta the way! Don't fence me in with your BS. We're Free Range.
yes, a jobless “recovery” does little good for most “average working Americans”
(in other words, the Ministry of Propaganda is working overtime and everybody else is being forced to queue up for food stamps and free ObamaPhones)
Re: “One of the main reasons why WWII is shown as a blue print for economic recovery is because it involved a massive expenditure in hiring that went towards the national infrastructure. That, in turn, put money in the pockets of the middle class and gave them the opportunity to go be consumers...”
There was certainly investment in infrastructure, but virtually all the new production was shipped out of America and into war zones, where most of it was consumed or destroyed.
The new World War 2 American middle class had the “opportunity” to be consumers, but what could they buy?
There was rationing on almost everything useful or desired, plus a housing shortage.