The Burden of the American Worker
The Burden of the American Worker Author MN Gordon – Acting-Man
There’s great elation flowing from the various economic bureaus down through President Trump. They bring us good tidings. If you haven’t heard, here in the USA, we live, work, and play in the dazzle and delight of an economy in which GDP growth exceeds the unemployment rate.
The president has clearly had a hand in job creation. 🙂 Seriously, there can be no doubt that aggregate economic activity has increased as a result of the measures the government has implemented, including deregulation, tax cuts and increased deficit spending. Note that the latter is offsetting the salutary effects of the other measures in the long run, even though government spending is added to GDP and therefore provides a near term boost to official “growth”. It is just difficult to tell how much of this growth consists of genuine wealth creation and how much of it is simply masking capital consumption. [PT]
The last time we drank of elation this cool and sweet was in the pre-iPhone stone ages. Back when George Dubya was President. And when Lehman Brothers was still one of the titans of Wall Street.
Indeed, getting back to this agreeable place has been a long, hard trudge along the road to happy destiny. But step by step, day by day, a paradise lost has been returned to Eden. Thank you, Ben Bernanke.
By all official accounts, things have never been better. GDP, according to the Bureau of Economic Analysis, is growing at an annual clip of 4.2 percent. The unemployment rate, as reported by the Bureau of Labor Statistics, sits at just 3.9 percent. But that’s not all…
Pot stocks have become the new bitcoin. The Dow Jones Industrial Average, after a six month hiatus, is marking new all-time record highs. And, most importantly, the Dodgers are tops in their division going into the final week of the regular season. What’s not to like?
Another recent standout is this 5-day move from $1.50 to $10 in the stock of NBEV on the mere announcement that it may begin offering drinks spiked with marijuana additives. There is actually an important takeaway from this for investors. Such moves happen only in the final stage of major bubbles. This means that a) yes, it clearly is a bubble, b) it is on borrowed time and c) you8 can be certain the unwinding phase will be harrowing. [PT]
The panoramic vantage from the present summit is both extraordinary and astonishing. Here, standing at the heights of a quasi-centrally planned economy, we see distortions and discrepancies. There are pie charts and bar graphs displaying contrived and downright fabricated economic data. The garbage outputs are very much at odds with the reality of the situation.
The results are bizarre evidence of the determination of the central planners to depict a world that’s unfolding in accordance with an intelligent plan. A supposed reality where not only does your neighbor get rich… but you do too. Truly, it’s a laugh and a half, the whole thing.