The Wells Fargo Economics Group summarizes the state of the US economy in its Monthly Outlook, 7-8-2015:
Halfway through 2015, and now six years into recovery, the U.S. economy remains in strange territory. Real GDP growth has proceeded on a narrow path, averaging just a 2.2 percent pace. Even this modest pace, however, has been sufficient to pull the unemployment rate down to levels near most conventional measures of full employment. Despite the low unemployment rate, the economy and labor market are anything but a picture of health. In fact, the feeble gait of this expansion has kept the economy vulnerable to the slightest misstep, be that bad weather, labor strife, or foreign events.
Your administration stands for social justice. You value taking care of the poor and disadvantaged above all else. Greedy capitalism that created the financial collapse in 2008 has been met with stiff retribution, penalizing banks and other perpetrators. Moreover, by your virtual executive fiat, we now have Obamacare.
Giddy liberals deride “trickle-down economics” as failed policy. By metrics such as income equality, it most certainly was. Policy may be corrupted by politics, and there are few effective checks and balances for executive compensation.
It is time for a reality check. Can we afford to subsidize services and extract capital from banks (effectively penalizing innocent investors for someone else’s misdeed’s, and exacerbated by government policy encouraging home ownership), rather than encouraging investment and growth? Is it unreasonable to focus on creating wealth first, so we have something to fund social programs? Or should we handicap wealth generation to do good now? Regardless of your answer, we shouldn’t be surprised by the economic situation summarized above based on policies of the past 6 years.
When the economy falters, the middle class suffers.