I love economics, I always have. I enjoy listening to The Democrats and Republicans lie about the economy.
According to the Republicans the economy is the best it has ever been. According to the Democrats it is the worst that it has been since the Great Depression. The truth is somewhere in the middle.
The economy is ok. Our economy is consistently growing by about 3.5%. Inflation is increasing by a little under 3% most years and unemployment hovers around 5%
We face two problems that neither Party discusses effectively nor will they fix: Debt and the Federal deficit and Trade and the Trade imbalance.
The Federal debt is over 8 trillion dollars and growing at an alarming pace. The Republicans are increasing every Federal program that exists and they absolutely refuse to kill ineffective programs. Indiana is in debt to the tune of about 1.5 Billion dollars; which is small in comparison to The Federal government. Almost every City, School District, County, and Municipality is in debt as well. The American consumer is heavily in debt. Foreign investors own more of our economy every year.
The frightening statistic put out by The Commerce Department today should be on the headline of EVERY newspaper, should be the main topic on every talk radio show, should be the main topic on television, and should cause concern through-out America.
Unfortunately, no one cares...
Last year, the overall savings rate in the United States was -.5%. The last time we had a negative national savings rate for an entire year was during 1933, during The Great Depression.
A negative national savings rate means that we spent more this year then we had. It means that as a whole the consumers in this country spent more then they made.
The baby boomers are getting ready to retire, the entire social security trust fund has been spent and this system is projecting a massive deficit, and the Medicare program is in even worse shape.
As a nation we buy more then we sell. We are no longer a nation that builds, we are a nation that buys other country's goods. Out high paying, low skill jobs are disappearing. China will become the second Super Power within the next twenty years.
No one cares about this either. Our government does not have a plan to minimize the trade deficit.