I saw the following headline a couple of days ago:
Service sector growth accelerated September stock market gains.
That's a real head scratcher to me. I have issues with "so-called" economists who have declared that the recession is over, with some declaring that it ended as early as June of 2009. I want to be a part of that fantasy world they live in.
The recession hasn't ended as they love to proclaim. It has simply eased somewhat from the depths it hit in late 2008 and early 2009. No way can anyone claim a recession has ended when unemployment remains near ten percent. And that ten percent is skewed by the fact that it doesn't include people who have given up on employment, nor does it take into account the number of people who were reduced to part-times hours either.
Banks, insurance companies, and many corporations have reported record profits over the last two to three quarters. What are they doing with this money? The one thing they're not doing is hiring, and I'm willing to concede there are valid reasons behind this.They know this recovery, or the proclaimed end of this recession, is a farce. So they're hoarding the profits they've made.
A recovery is going to be hindered by many things. One being the greed and stupidity of the last decade that threw the average American so far into debt that they need sunshine pumped down to them to see daylight. Another factor is we've become a country which produces much less than we did as little as 20 to 30 years ago. Corporations fled to third world countries to make products at a fraction of the cost it takes to produce them here.
Usually you reap what you sow. Eventually this practice will have to catch up with them. When we lose jobs here to overseas operations it means less income here to spend on those products. Of course the money these corporations have saved moving production out of the country negates some of this issue. But I see that starting to change. But it's almost too little, too late.
You can't expect a sustainable recovery with no addition of jobs. You can't expect a sustainable recovery with the amount of government debt racked up over the last few years either.
70% of our economy is driven by consumer spending. How about we put the consumers back to work to enable some spending?
To me, most of you so-called economists, are nothing but parasitic mouthpieces for Wall Street and banking institutions.