Posted on 08/10/2016 2:37:04 PM PDT by gop4prez
The left argues that wealth inequality will doom and economy because ‘no one will be able to afford anything’. But the empirical evidence refutes this. Consumer spending is at record highs and keeps rising. Stocks that are dependent on consumer spending keep making new highs. Amazon.com, Johnson and Johnson, Disney, Nike, Facebook, Google, and the consumer staples and consumer discretionary ETFs are are record highs.
(Excerpt) Read more at greyenlightenment.com ...
It isn’t possible.
The stock market is not the economy.
The stock market is strong...but that is where the (digital) printed money is being infused (the Feds). Stop that practice and the house of cards comes tumbling down. They are PAYING for the stong stock market...buying it until Obama is out of office.
The national liberal press has avoided talking about the huge spikes in homelessness. Beggars are everywhere in my city.
The stock market signifies exactly nothing. The real problem is a lack of jobs. Trump 2016....
The economy is doing great if you’re a crooked politician or own shares in a crooked politician. The wealthiest counties in America surround Washington, DC.
People who have money still want to see a return on it, have you looked at bank interest rates lately? The stock market is one place where investment returns are halfway decent, albeit with risk. During times of volatility, consumer staples are a sheltered place to invest with less risk because demand is fairly constant and not subject to many economic influences (people still have to eat, etc).
This industry has also benefited from very aggressive cost-cutting and outsourcing of non-core activities, low energy costs, and a shift in consumer preference from brick-and-mortar to online shopping.
How is it possible? I’m thinking.....Government handouts. And probably working under-the-table too.
It’s possible, for a little while, if you borrow fifty cents on every dollar the government spends - which is how we are doing it.
No.
The answer is that the government is subsidizing consumer spending.
Social Security and welfare pays for the products, including paying for the part of the cost that goes to the media for advertising (which they love).
Fine, except the debt and taxes that support this scheme come from wealth that could have been invested in growing the economy.
Consumer spending just maintains the economy, it doesn’t grow it and create jobs like direct private investment does.
Wrong approach. Just imagine if we were at only 15% unemployed.
We may be doing better than third world countries but we’re definitely circling the drain.
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