I disagree that the past 8 years were the model for a private higher standard of living. In the free market scenario, the products are sold cheaper and cheaper by greater efficiency and competition. But our major industry driving the private sector economy was housing. But housing prices rose not fell, so did energy, and food, it all went up , until last year when it all collapsed from the weight of what was driving it, ever increasing debt, inflation, higher interest rates all at the same time. Now the economy is in huge trouble due to massive private and public debt.
Most of the subprime loans were owners cashing out their houses, home equity loans on equity that doesn't exist, really never existed. Now some investor or bank owns the loan worth more than the property and the government and fed are trying to manufacture money to reverse those losses in an attempt to get the loans flowing again (or for social reasons.) .
The ‘money in our pocket” was gov deficit spending and spending the equity of houses that never existed, ie debt! I am afraid something else has to be fixed, this was a disaster.
OK. I will try to keep in mind what you’re saying. You obviously know more about this than I do. Thanks for the reply.