acting-man.com / Bill Bonner / September 12, 2016
A Small and Lonely Group
PARIS – It’s back to Europe. Back to school. Back to work. Let’s begin by bringing new readers into the discussion… and by reminding old readers (and ourselves) where we stand.
US economic growth: average annual GDP growth over time spans ranging from 120 to 10 years (left hand side) and the 20 year moving average of annual GDP growth since 1967. Note that the bump in the 70 year average is actually distorted by the output growth boost recorded during WW2 (the charts were made in 2009) – which is actually a prime example of how useless GDP can be as a measure of prosperity. Nevertheless, it is serviceable for the illustration of long term economic growth trends. Exponential credit expansion since the adoption of the pure fiat money system, the associated relentless growth of the welfare/warfare state and persistent declines in average economic growth rates have been going hand in hand, which is no coincidence – click to enlarge.
As a Diary reader, you join a small and lonely group. But we know something others don’t. We understand the real cause of our economic malaise. What malaise, you ask?
Well – how could the richest, most technologically advanced, and most scientifically sophisticated economy stop dead in its tracks? The rate of economic growth has gone steadily downhill for the last 30 years. By some measures, after accounting for the effects of inflation, we’re back to levels not seen since before the Industrial Revolution.
And how could such a modern, 21st-century economy make the average person poorer? As we saw recently, when you measure actual inflation, rather than the government’s crooked numbers, the median U.S. household income is 20% lower today than when the century began.
And why would our modern economy concentrate wealth in the hands of so few, so that only the richest 1% make any real progress
You may also ask a question with an obvious answer: Why are the richest and most powerful people in the country overwhelmingly supporting Ms. Clinton in the presidential race?
You find the answer to all these questions the same way: Follow the money.