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Charting The Great Stagnation Of American's Real Productivity
With Federal debt growing at the rate of $40,000 a second - not all that far from what a typical family earns in a year; with a debilitating dependency on the state all too elevated; and with any number of restraints to peace and progress not only unresolved, but utterly unresolvable under present conditions, is it any wonder that our nation has become entirely stagnant. As Sean Corrigan of Diapason Commodities notes in this simple chart - real net private product per capita has been dead for more than a decade - mirroring its poor showing during the inflationary disaster of forty years ago. Given the four-more-years of Bernanke, to expect a radical turnaround under such conditions (of monetary policy largesse and experimentation) would be to display as much naivety about the prospects for 'change' as did so many bien pensants four short years ago.
Source: Diapason Commodities
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Productivity no longer matters in this economy. Only monetary base and simulation.
Yes, now I bought the VIX, what trading halted? Fuck you and pay me! this will end well I am sure.
Winter is coming.
Dress warm.
The elite would like productivity to go backwards if it would keep the people happy. Fortunately for the elite, food stamps and obummer phones do the trick.
No surprise really. Remind me, what are the wages for people who actually produce something of real value again?
Produce? I'm not familiar with that term. You mean borrow money and spend it on Chinese nicknacks? BEA tells me that is growth? Is that production then?
It is whatever they want it to be. Guess what??? We will accept it.
Produce. Green shoots man. Where's the salad dressing?
Produce. I think he meant like vegetables. No not the ones that vote for this bs to continue.
I hate it when Laws throws out trick questions!
Totally, slaughterer. And, on top of that, it's created a huge income divide that is dangerous for the nation:
http://www.accuracy.org/release/election-results-the-income-divide/
so what you're saying is we're due for another "great leap forward"? george likes his kung pow chicken spicy.
How you pay!?
credit
And what of value does Diapason Commodities produce?
real net private product per capita has been dead for more than a decade
Oh, it's been dead for a lot longer than that when you consider the nonsense that counts as "GDP" in a "service" economy. For example, you and I each mow the other's lawn and pay each other $5. That's $10 in GDP. A total farce.
THIS
"Production" is a bunch of BS. "Productivity" is BS/T.
Off topic but . . .
California Democrats appear to have picked up a supermajority in both houses of the state Legislature Tuesday night, a surprise outcome that gives the party the ability to unilaterally raise taxes and leaves Republicans essentially irrelevant in Sacramento.
Read more: http://www.sfgate.com/politics/article/Democrats-get-supermajority-in-Legislature-4015861.php#ixzz2BZL3sIuT
In CA now you can talk about The Party, period. Unions own it.
Well, it will be an interesting experiment. CA insists people will pay more to live in the "Golden State." We'll see.
Random down clicker on the loose.
Tell you what: they will pay more and more, going Forward.
Competition at work.
Don't like California? Move to Idaho.
Please don't
They sure will. And I'm glad the experiment will take place in another state. Nothing like getting an education for free.
They also mandated that condoms be used in porn films. Nasty, uncomfortable things; never wear 'em myself. The Culver City riot is about to rival the anti-austerity protest in Athens.
Weird connectivity issues in the last 10 minutes.
As went the VIX, so goes ZH?
It is not an illusion. I to, suffered a Z/H brownout!
Must be the same "rogue" algo that busted VIX.
One could say the problem of America going from a producer to a consumer started in 1924 (or even 1913...shocker):
http://t.co/5K7bB6eF
Wonder what happened around those years that was important?hmmmmmmmm
The stagnation started as soon as we repealed Glass–Steagall. That was when we traded a functional banking system for a casino.
Glass-Steagall's a red herring. Bank of America / Banc of America was doing exactly what they are now in perfect compliance with Glass-Steagall before it was repealed.
Willfully ignoring antitrust laws is the real issue.
But but but Krugman said technology will solve all problems.
Listening to "Bob Pissonme" talk about the VIX is comical. We need to unleash WB-7s' talents on that bloviating BTFD poster child.
As far as productivity goes, I just designed a waterproof "Bob Pisani" dart board. Great for outdoor shooting ranges.
Fuck You Bob Pisani, and the Unicorn you rode in on!
Pissonme is the poster child for this fake stock market world we have to put up with every day.
"I just designed a waterproof "Bob Pisani" dart board. Great for outdoor shooting ranges."
Or urinal mats.
This Stagnation is as much a consquence of Polical Choice as it is Financial Condition and Public Policy. Americans elected weak willed 'collaborators' to represent them in Congress. Then they permited key government positions to be filled by Morally & Ethically corrupt pre-felons (not yet arrested, indicted and jailed). American voters have been duped since the murder of John F. & Bobby K. - by the exact same set of thugs. They have only themselves to blame!
Americans dressed provocatively. They only got what they looked like they wanted.
Actually, the great improvement in productivity during the '80s and '90s went hand-in-hand with the personal computer revolution. Before that, we were using production systems essentially worked out in WWII adapted to domestic production. After that, the "low hanging fruit" made reachable by the computer revolution had mostly been picked. Increasing productivity has been pretty tough sledding since then. Financial shenanigans and political chicanery are not the only elements in this story.
Interesting. The first period of the chart is the Great Stagflation (depression) of the 1970s; the second period was the expansion that followed, about 1980-2000; the last period is the current depression that began in 2001 or so. You can also see these periods pretty clearly if you measure nominal GDP in terms of the price of an ounce of gold. This is actually a quite amazing chart.