An Unstable Economy

May 8, 2017

Despite the rebound in job creation in April, the big picture has not changed. Throughout this century we've seen corporations taking a bigger piece of GDP at the expense of the labor force. Please do not take this statement as an endorsement of socialism. Instead it is a statement of economic fact. 

 

This week's Chart of the Week includes a quote from the CFA Textbook of this fact.

I don't have the answer and sadly I don't believe the leadership in either party has a clue either. Maybe therein lies the answer--removing those on the far right and far left that have stubbornly stuck to their ideological beliefs and refuse to look at the DATA.

 

I do know one thing -- our country needs a complete overhaul. Investment in actual projects that increase productivity is the only answer, not simply slashing taxes for the corporations and those that own them. Boost incentives to invest in big projects, remove incentives to simply use profits to buy back stock or pay dividends, and the labor force will receive more money. That may not solve all of our problems, but it would be a nice start. Otherwise we risk fueling the growing anti-captialistic sentiment that is brewing in the lower and middle classes across our great country.

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