Re-Building Per Capita Incomes Could Take Decades
Today’s news that U.S. economic growth may not exceed 2% this year had an immediate effect on the stock market. But how long does it take a nation to recover its GDP in a slow growth period? The U.S. economy grew at a less-than-forecast 2.8% in the fourth quarter 2011. For the full year 2011, the economy expanded 1.7% and consumer spending grew 2.2%, according to U.S. Commerce Department data….
Read more...Tags:capitalism , consumption , financial reform , housing fraud , income inequality , wealth destruction , wealth re-creation
The Link Between Housing, Spending and Wealth
News that the Federal Reserve is considering a new $1 trillion round of quantitative easing is being accompanied by new data showing the ratio between home equity and disposal income is at a historic low. This unprecedented ratio is all important in a credit society since it demonstrates that expansion possibilities are limited to non-existent if American consumers cannot borrow.
Read more...Tags:capitalism , consumption , home equity , wealth destruction , wealth re-creation
