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.