And the advances in mass production three decades prior averted the Depression! As did productivity gains in chemical, telecom and transport stop 1970's stagflation!! Pure genius. Why is it you perma bulls neurotically draw rosy (yet irrelevant) comparisons to reassure yourself everything is ducky? Real Wages are on the decline and have been for the past 7 years. Thats troubling. Because the United States isn't supporting a 1970's, 80's or 90's economy. We're supporting a 2008 economy which is MUCH LARGER than the canards used in your example. Therefore, gluts in our 2008 economy will feel very real even if Made-In-China Designers are much more affordable to a Middle Class who still can't afford it (but charge it anyway, to credit cards they can't afford ).
Exporting jobs to China doesn't count. Try looking at REAL Wages. On the decline, guy. Don't get me started on China.
basically this is the perfect storm late 70s style liquidity induced commodity rally and 20s style leverage. the shake out won't be pretty when it happens.
So tell me, if the standard of living is eroding so rapidly, then what period labeled as a financial crisis like today WAS BETTER than 2008 for the average worker? During what period was the standard of living for the middle class the highest? 1981/82? 1990/91? Or 2008? When I read this BS about the eroding middle class I can don't know if to laugh or to cry. People are wasting more money than ever and whine on how they can't pay their bills and how unfair the entire economic system is. Blame it on the Dollar, blame it on the Fed, blame it on the Chinese, blame it on Washington etc. Never ever blame it on their own spending habits!
Using Apple or their IPOD as a proxy for our economic health is totally stupid. Sorry. Wow. GTA 5 sold 5 million copies on opening weekend. The economy must be doing great!
So exporting low-qualification manufacturing jobs to China and replacing them with higher qualification jobs and service jobs domestically DOES NOT COUNT DOES IT???????????? I guess we should just abolish all common sense, too. The gold bugs scream about rampant inflation when unit labor cost increases are still around 2-3%. Incredible. I guess nobody remembers we had an increase in ULC in the range of 10-15% like CLOCKWORK in 1979/1980.
Most gains in household income over the past 30 years resulted from the inclusion of dual income families - Moms who entered the workforce alongside Dads. Before, Dad could pay the mortgage, feed, clothe, medicate and educate the family on a decent factory or office job. Now it takes BOTH Mom and Dad to do that. So you tell me, which era had it better? The working class Schmucks (us) who eat junk every night, let daycare raise the kids, and stress two menial jobs so they can acquire all marvelous toys of this technological-utopia? Or the 1960's family who had less gadgets and doo-dads, but a stronger family unit, a mother who stayed at home and took care of the kids, and a Dad whose job covered the bills with a bit extra to spare? Americans are solely to blame for their mindless spendthrift and unsustainable lifestyle. The Fed (and Government) is responsible for perpetuating an inflationary monetary system that heavily favors consumption (and punishes saving) while incrementally robbing Americans of their hard earned money through inflation and the outsourcing of what-used-to-be bulwark factory jobs.
Keep dreaming, guy. 50K a year factory jobs displaced by burger flippers and customer service clerks? Thats the Globalization Myth. That somehow deindustrializing an economic Powerhouse creates more prosperity and abundance for everyone. Owners and stockholders get rich from axing American workers and keeping the difference. After paying Ying Yao 20 cents an hour and transferring patents and trade-secrets to China. Inflation was honestly reported back in the 70's. You think if the Government came clean and admitted double digit inflation based on 1980-era CPI, Americans wouldn't demand raises the next day? This is how it works, guy. Its a scam. Keep everyone in the dark on true inflation, and the average worker/union/lobby doesn't push for wage hikes across the board. Thats supply side manipulation to give Bernacke enough time to bailout Wallstreet.
achilles28, you convinced me. Globalization is evil, the Fed is evil... capitalism is the enemy of the working class!!!!!!!!!!!! Working class of the world... UNITE AGAINST THE EVIL!