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Now that the Obama Reign of (Economic) Error has ended, let’s examine a new misery index that demonstrates how most Americans suffered from a nonexistent economic recovery even with a doubling of the Federal debt.
Here is a chart showing Federal debt held by investors (as opposed to Federal debt held by government accounts) as a percentage of gross domestic product that grew from less than 40% to over 72% of GDP. Also notice that average hourly earnings of production and nonsupervisory employees YoY never exceeded 2.8% after the end of The Great Recession.
If I use the inverse of Public Debt to Gross GDP, I get this chart which shows that the worst wage recovery for non-elites coupled with a doubling of The Federal Debt held by the public. Clearly the worst wage recovery (at least since 1965) couple with the Federal goverment gorging on debt … for which future generations will be on the hook.
But it isn’t like Federal current tax receipts haven’t been rising under Obama/Fed. They have risen at a rapid pace.
Then, of course, we saw that The Fed’s zero interest rate policies (including QE) didn’t help stabilize the downward trajectory in the labor force participation rate. Adding thousands of pages of Federal regulations from the Consumer Financial Protection Bureau (CFPB) and the Environmental Protection Agency (EPA) didn’t help any recovery either.
And wealth distribution is now back to Great Depression levels (although not solely due to Obama/Fed policies — they only worsened the problem).
“We did not come to fear the future. We came here to shape it” (and made it even worse!) – Barack Obama.
Here are Janet Yellen and Stanley Fischer leaving The Federal Reserve at the end of their term into the worst wealth disparity since The Great Depression.
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