Free Markets, Free People

So, how IS the economy doing?

Dale keeps you abreast of the daily numbers and if you even glance at them semi-regularly, you know they’re not particularly good.

So how have we been doing lately economically?  Well, a little historical context might help:

In the 138 years from 1870 to 2008, the US economy expanded by about an average of 3% a year. After the revisions to GDP data from 2012-2014, we see that the U.S. economy since the financial crisis has been growing an average of 2.0% a year versus the earlier 2.3%. The difference between 3% and 2% may not sound like much, but think of it this way:

At a 3% growth rate the economy doubles in about 24 years.
At a 2% growth rate the economy doubles in about 36 years – 50% MORE time!

And don’t forget, while the government tries to sell you on 2% being the new norm (and you should like it), much of the recent GDP results have involved huge government spending.  So it is actually worse than the 2%.

Here’s a fairly interesting bottom line:

Today there are 136 people receiving some sort of government benefit for every 100 people employed in the private sector.

That can’t go on indefinitely.  Greece and Puerto Rico have already demonstrated that.  And, although it isn’t the only factor leading to this economic demise, it certainly is one of them.

You see, math and reality don’t bow to ideology and fantasy.


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15 Responses to So, how IS the economy doing?

  • It’ll pick up dramatically once the new mandated 30% reduction in CO2 hits the remaining coal fired electric plants.

    Barack Obama, taking steps to help America, every day.

  • I wonder why we can’t export oil?

    I mean, it couldn’t have anything to do with actually WANTING the economy to sputter…


  • You just need to work later McQ.

    • Boxer the Horse says, “I will work harder!”

      • I suppose he was supposed to be a sympathetic character, but when he met his fate and was sold for glue I kind of got a grim satisfaction out of it. Much the same feeling I have nowadays because people knowingly voted for this. And most likely will do so again next election

        • And our friends in the Oligarch bankrolled Republican party keep giving us alternatives that will end taking us the same place Obama and Boxer will take us, if only a little bit more slowly and conservatively.

  • Nobody talks about Venezuela. There is a virtual news blackout going on. There are nightly riots, government thugs in civilian clothing clandestinely whacking suspected agitators, shortages of every sort: food clothing, sanitary supplies. Electricity and water is turned off and on for no apparent reason (government reprisal is most suspect). The internet is monitored and censored, but some information does occasionally get out. A family friend lives there and sends us updates (and video) when they can, it is a very ugly situation that gets virtually no press here. As difficult as it is for us to believe, Hugo Chavez is considered a godsend by comparison.
    If the voice of reason against Socialism needs ammunition, one need look no further than Venezuela, and now you get a glimpse why there is a news blackout in this country. There’s lots of news and none of it good.
    “Land of the free”, sort of.

    • And all that with one of the world’s greatest known reserves of oil in proven, producing fields.

      BIG GOVERNMENT ruins.

      Every time…

  • Richard Fernandez (“Wretchard”) at Belmont Club has a new article on Venezuela:

    We’ve got a couple of those Four Horsemen already saddled up and riding out….

  • Hey, Recovery Summer VI is going … no where

    • Not to bring up Voldemort, but I laughingly recall his claim, and the claim of the greatest President evah that he had to, and was, going to focus on the economy with laser like precision.

      Yeah, with a laser designator to hit it with a laser guided bomb.

    • Recovery Fall is fast approaching.

      Wait… That doesn’t have the same zing…

      • I expect it will have plenty of ‘zing’ if it gets here.

        • I think we can safely predict a “zingless” Fall. In fact, there are obvious reasons why all the zing has been stomped to death by the Obamic Decline.

          • Ah, I was focusing more on the double meaning in your use of the word FALL.