The economic landscape in America appears to be flourishing, with various agencies reporting positive news that reaches even the President. The sentiment is that our economy, where GDP growth outpaces unemployment, is thriving.
The last time we experienced such a robust atmosphere was in the era before smartphones, during George W. Bush’s presidency, and when Lehman Brothers still stood as a formidable entity on Wall Street.
Reaching this moment of optimism required perseverance and effort, but gradually, a lost paradise has returned to a state of prosperity. A tip of the hat to Ben Bernanke for the journey.
Officially, conditions are exceedingly favorable. The Bureau of Economic Analysis reports GDP growth at an annual rate of 4.2 percent, while the Bureau of Labor Statistics indicates an unemployment rate of just 3.9 percent. But that’s not the entirety of the story…
Pot stocks have emerged as the new bitcoin, and the Dow Jones Industrial Average is reaching new all-time highs after a six-month pause. Moreover, the Dodgers are leading their division as the regular season nears its end. What’s not to appreciate?
Notable Discrepancies
From this high vantage point, the view is both spectacular and puzzling. Evaluating our economy reveals several contradictions. Pie charts and graphs present manipulated data, which often blinds us to the true state of our economic reality.
This odd mix showcases the central planners’ desire to project a world that unfolds smoothly according to a well-thought-out strategy—where not just the wealthy accumulate riches, but everyone enjoys the benefits too. It becomes somewhat absurd.
To start, this growth is largely financed through significant corporate, consumer, and government debt. Ignoring this fact would stretch reality unreasonably. When we equate GDP to a measure of our financial decline, the celebrated 4.2 percent growth rate appears rather comedic.
Additionally, the reported 3.9 percent unemployment rate feels disingenuous, especially when the labor participation rate has hit a 40-year low. If unemployment is indeed at an all-time low, why are wages remaining stagnant?
These inconsistencies help clarify the challenges faced by most individuals, leaving them feeling like participants in a performance. What can be made of this situation?
The Weight on the American Worker
The typical American worker grapples with reconciling the government’s portrayal of a booming economy with the stark reality reflected in their biweekly paychecks. This struggle often feels like a cruel joke—a futile game of chasing after unrealistic expectations.
How can it be that with nearly a decade of economic growth, the average worker has experienced no significant increase in earnings? Have these workers really been running in place all this time? How did they wind up in such a ludicrous situation?
The reality is that the American workforce is not benefiting from this centrally planned economy. The burdensome combination of artificial money and convoluted regulations creates hurdles that are seemingly insurmountable. Financial claims emerge long before actual labor is rewarded.
Effectively, the system is rigged to redirect the value workers generate toward Washington and Wall Street, where it is siphoned off and misallocated among officials, allies, and bankers. What remains is barely enough to cover life’s essentials—keeping the lights on, the car operational, and food on the table.
Shouldn’t a low-income worker expect more?
Absolutely, they deserve the rewards and respect that come from hard work, saving diligently, and staying financially responsible. Yet, what do we truly understand about this situation?
For now, we continue to cut our grass with push mowers, savor black coffee, and write out checks for our utility bills.
Sincerely,
MN Gordon
for Economic Prism
