No End In Sight for a Stable Economy

It is quite simple. In a 67% consumer driven economy, there can be no recovery until well paying jobs are created and home prices stabilize and home foreclosures are curtailed.

Job losses are mounting despite the efforts of congress to fix our financial problems. Wages of the average American have been stagnant since the mid 1970's when employers began curtailing merit raises and giving only 3-4% average raises which are negated by income tax and inflation.
Check the studies that have been made by Tax Foundation and others.

Meanwhile the top 1% of all income earners have increased their share of the total economic pie from 19% in 1980 to just under 40% in 2006, even without the full impact of the elimination of the inheritance tax and reduction of the capital gains tax from which the wealthy get 87% of their income.

Until good paying jobs are again created and we go back to producing things instead of importing them things will not get better. Growth comes from gains not stagnation or losses.


Joe