I guess you don't get what I am saying or you haven't read into these GDP numbers enough.
The real GDP, as far as AMERICANS are concerned... my guess is around 2.x%. We need close to 4% to sustain this economy. The reason the GDP is so high is because the metrics are flawed.
For example, the productivity metric is off the scale, why? Because labor intensive work is now offshore, where there used to be 50 people here doing work now there is just me, and an offshore team. Those 50 people working in india show up in productivity as MY productivity figures. Very misleading, and incorrect as far as what the fed is trying to show.
Same with GDP. American companies are selling stuff, but they are not 1) designing it here, 2) building it here, 3) selling it here. That means this money is not being distributed in our economy.
Here is an economist that "gets it".
"Factory workers aren't making them, the factory sector isn't producing them, and delivery men aren't bringing them, but the goods are nevertheless ending up at your doorstep and in GDP. It's the Twilight Zone economy."
news24.com
When Bush liquidated the treasury, he hadn't figured out this globalized economy we are living in. He just thought things would bounce right back ala Clinton, so he just decided to write a check to his crony friends with MY money. Now, it is going to take YEARS to get the treasury into the kind of shape it was in before BushCo took the helm. What a MESS. |
