Monday, August 19, 2019
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Politicians Revel in Disaster Spending Feeding Frenzy

Nothing makes political hookers forget their differences like the billions of dollars to be skimmed from our nation’s bloated hurricane recovery spending. I’m...

Hillary’s “Let Them Eat Cake” Moment

Hillary Clinton's exaggerated claims about the health of the U.S. labor market and economy, and lauding of a jobless recovery benefiting only the rich, are...

Money Manager: Occupy Wall Street’s Inequality Claims Resonate

For some, this economy is lots better.

We keep hearing that an economic recovery is underway. Yet for those who don’t have lots of money in the stock market, there’s been no economic recovery.

How many of you know that the market value of all U.S. listed stocks right now is $18.7 trillion. Not only is that almost a double from the March 2009 low, but the gain itself is just over $9 trillion. Let me repeat, the value of all US stocks is up by over $9 trillion in three years. Wow.

Obviously for such a huge gain the underlying US economy, particularly wages and salaries and employment must be doing so much better than it was back in early 2009. Right?

Wrong.

Early in 2009, after-tax take home pay for everyone who pays taxes was just about $5.9 trillion annualized. That was down from an all time peak of $7 trillion annualized at the beginning of 2008. The main reason after tax income was down so much was a plunge in capital gains – primarily from profits on home sales.

After three years of attempts at a recovery, take home pay is now around $6.3 trillion, up all of $400 billion annually since the early 2009 bottom, or 2% a year.

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