View: GoldmanProductivityGrowth.png (875×534)

GoldmanProductivityGrowth.png (875×534)

Putting productivity growth into perspective

Comments

Pipe&Snipes takeitallnightPipe&Snipes takeitallnight
As I recall, but could be wrong, George W. Bush continued the Reagan bandwagon of "lowering taxes will create investment." This is nonsense. All economies have three components: consumers, producers, and investors. This country has crapped on the producers mostly, but now it has joined in destroying the consumers. Yes, we are a consumer economy, but the consumers aren't earning their ability to buy anymore, it's just Mastercard. Meanwhile, as productivity gets shipped to China, lowering rich people's taxes won't bring those factories back. So, with lower taxes under Bush, the Chinese stock market shot up 600%. This doesn't even scratch the surface of how when budgets aren't balanced, the deficit that makes up the difference comes right out of the price of groceries. So, out of control government employees' salaries and hiring and government contracts that only benefit the wealthy have created deficits that hurt mainly the working stiffs. Now, all of the productive Chinese guys(you know, the ones who were going to join the middle class sewing Nikes for 12 cents per hour) have enough money to spend, so they cannot join the consumers. Thus, the investor reaps almost all of the benefit of China's manufacturing. The consumer could benefit, for sure, but the consumer used to be the producer, and now his union job is in China for Top Ramen wages. So, why would anyone invest anywhere(particularly in America) when existing factories and plants are only working at a fraction of their capacity. Only recently have American refineries approached capacity. Thus, no demand for loans, Zombie banking, no wages, no demand for housing(real demand, that is). Maybe we should spend a few trillion bombing Muslim children. That might fix it. 10/8/15
Pipe&Snipes takeitallnightPipe&Snipes takeitallnight
a 10/8/15
Useful IdiotUseful Idiot
I'm sorry , but Dwight D. Eisenhower was not president in 1965, the big Johnson was. 10/8/15
gilfishgilfish
And the interstate highway system was signed into law by IKE but certainly not in 1965. Maybe Mr. Spirit could redo his chart and make it correct before spewing forth opinions 10/9/15
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