Saturday, January 2, 2010
The Lost Decade (2000 to 2010)
For sixty of the past seventy years the United States economy has grown. This growth generated higher incomes for the American family and increased wealth for American households. The report card for the first decade of this century is starkly different.
An article in The Washington Post today details these troubling statistics, and what they mean to American livelihood. Rational Nation USA will bullet key points here but suggests a reading of the full text of the article.
It is without doubt the political pundits from both sides of the failed congressional aisle will have their fingers pointing to their political opponents. Yes, it is true the G.W. Bush era was the worst in economic history since the great depression. And it provides fertile ground for the Democrats to take Republicans to task for their huge and uncontrolled deficit spending. It is also true that Democrats did their share of contributing to unneeded and unnecessary spending. That aside it is now time for Republicans, Democrats, Independents, Business, and Labor to begin working together to fix the mess that was created during 2000 through 2009.
A Radical Perspective. He is a rational blogger that leans left but often is correct in his analysis.
So, as we look to the second decade of the twenty first century and beyond, lets hope that our political, business, and labor leaders will quit pointing fingers and calling each other names and actually work TOGETHER to solve our nations problems. It is either this or continue on a self destructive path sure to compete with the one we just left behind.
So, with political opinion now aside, here is the summary promised:
1) Since December of 1999 there has been zero job creation. Since the 1940's no decade prior to 2000 - 2009 had less than twenty percent job growth. Economic output (GDP) rose at the slowest pace since the 1930's.
2) Middle income families made less after adjusting for inflation than they did in 1999. The past decade was the first time since the 1960's that median incomes actually declined for a decade.
3) The net worth of American households (the value of their houses, retirement funds and other assets less debt) has also declined after adjusting for inflation. Since the 1950's when data began being collected every other decade had significant gains.
4) The first decade of this century experienced the first business cycle where a working age household was worse off at the end of the cycle than when it started. Even as growth in productivity continued and should have resulted in improvement the standard of living.
The above summary is but a part of the overall article. Please see The Washington Post for complete information.
Via: The Washington Post