10/13/2007

10-13-07 - 1

The US economy sort of looks good if you don't think about it. After all, the stock market has grown by 15% per year on average for the last 5 years. On the other hand, that is way behind average international growth in that time. Measured in any currency except the dollar, it hasn't grown at all. Even with that growth, the actual median income has stagnated or perhaps fallen. That's also a period immediately following a market crash which should normally be a period of growth. We've also had historically low interest rates and a huge tax cut and deficit spending spree which should've stimulated the market more. The government reports that we keep adding jobs, but those additions have been way behind maintenance rates. We have nominally low unemployment, but that's partly because the number of people who are not looking for jobs is at an all time high percentage.

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