Anonymous
Anonymous asked in Business & FinancePersonal Finance · 3 months ago

Do you really think the US economy is doing well, statistically?

The reason I ask is because there's a lot of Democratic pundits who think it's going to be difficult for a Dem nominee to run against Trump's economy. But these pundits come from a very affluent background, and they don't really know too much about what people outside their social circles go through, and all of their friends are doing well. Even Trump used to make this point when he was running that the unemployment stats are fake, but of course now he's gladly touting them. This article by the Washington Times, a conservative paper aligned with Republicans, quoting a study by the conservative Brookings instituted, even they are showing that 44% of Americans are making less than $18,000/year, well below the poverty line. What good is low unemployment when everyone is poor? I think a Dem candidate can easily make a case against Trump that the economy is actually in deep depression right now. What do you think?

https://www.washingtontimes.com/news/2019/dec/3/de...

Update:

The reason I say that the economy could actually be in a depression is because most people's wages are falling in real inflationary terms. Depression involves negative growth, and wages falling is negative growth.

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  • 3 months ago
    Favorite Answer

    I wouldn't put any trust in the Wash. Times.

    There are two things going on here, and the same two things that every Republican president since Reagan has done.

    1.  Wealth is being concentrated.  Republican presidents brag that the stock market is soaring into previously unknown territory.  But the stock market is a measure of how rich rich people are, not the middle class.  When Republicans brag of the nation getting richer, really only the top 1% is getting richer!

    2.  This economic stimulation is being bought with debt.  Anyone can live high off the hog for a while if they don't mind going deep into debt.  It's just too easy for any president to spend money we don't have and take credit for the temporary economic stimulation, knowing that when the bill comes due he'll be safely out of office and it will be some future president's headache.

    Those of you who might be following all my posts, I have to apologize for bring this up again, but the fact remains that EVERY Republican president since Herbert Hoover has led us into a recession.  They way they boost the economy makes it practically inevitable.  I think GW Bush's economic people knew the market was going to crash and the economy would self-destruct, but they expected it to happen a year later, so they could blame the next president for it.  Trump is doing exactly the same thing that Bush did--borrow and spend.

    • ...Show all comments
    • Casey Y
      Lv 7
      3 months agoReport

      I would disagree that W's finance people saw this coming.  Ben Bernanke was appointed by W and served through the entire mess, including 5 years into Obama's term.  

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  • 3 months ago

    U.S. salary budgets are projected to rise by an average (mean) of 3.3 percent in 2020, up from an actual year-over-year increase of 3.2 percent for 2019 and 3.1 percent in 2018, according to the WorldatWork 2019-2020 Salary Budget Survey: Top-Level Results, released in July. // Since January 2019, female job holders received average wage gains of 5 percent, while men averaged wage gains of 4.6 percent." Job switchers in the information industry continued to lead the way with a wage level of $41.08 and growth of 9.7 percent.Jul 24, 2019 // Average hourly earnings increased 3 cents in December to $28.32. The 2.9 percent year-over-year gain is above inflation, but modest relative to other periods with historically low unemployment. Wages for frontline workers grew at a slightly faster rate, up 3 percent in December from a year earlier, but growth has cooled sharply from the 3.6 percent year-over-year increase reported in October.  - We are not in a depression, the economy actually is chugging along with little peaks and valleys but still improving.  Most people still complaining have a spending problem not an earning problem.  "If you could kick the person in the pants responsible for most of your trouble, you wouldn't sit for a month."  -Theodore Roosevelt

    • Lv 7
      3 months agoReport

      The link you posted itself says wages are "a sour note".

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  • 3 months ago

    I think that figures don't lie, but liars figure. If we were doing badly, we probably wouldn't hear about it.

    • Lv 7
      3 months agoReport

      Interesting point.

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  • Anonymous
    3 months ago

    I think that people need to start thinking about the $23 trillion debt and the fact that there seems to be no interest or plan to pay it off.

    The rich continue get richer. The poor will continue to scrape by and will be saddled with paying this debt off for generations.

    Talking about an economy doing well means nothing to someone who is underemployed, who works 2 crappy service jobs, goes to bed praying that they don't fall ill and that their toothache will be gone in the morning because they can't afford health insurance.

    • Lv 7
      3 months agoReport

      Modern Monetary Theory shows that debts and deficits don't matter for a government, because they can print more money. Or in this day and age, create more money by simply adding it to the spreadsheet. Governments, especially the US, seem to be following this model.

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  • Erik
    Lv 7
    3 months ago

    In my lifetime, there have been only two incumbent presidents that lost, and both times the economy was in the toilet.  Personally, I'm not doing as well as I was a few years ago, but that's just me.  I think as a whole, the economy is strong (although slowing down some) and unemployment remains low.  So it's going to be tough to beat him.  Even though the economy was ALREADY pretty strong when he was elected.

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