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Tuesday, July 30, 2013

The ugliest chart of the recovery?

The pundits on TV sure do a lot of talking about how good the economy is.  Once upon a time quarter after quarter growth rates less then 2% would have been viewed as a recession.  Now it is an improving economy.  The economy sucks.  Here is a chart that pretty much sums it up.


The five year growth in personal income is -5%.  This looks more like we are in a depression rather then a recovery.  This just can't be good for the country long term if the income does not get better.  What happens if we have another bad recession?

Speaking of recession this chart is still headed in that direction.


It is pretty hard to argue the economy is improving at this point.  The affects of the tax increases and spending cuts in Washington will continue to be a drag.  Now we have higher interest rates that are threatening to slow down the housing recovery.  The economists keep predicting the economy is going to catch fire at some point in the future.  I guess we will see if that happens.  I can't find any sign of it at the moment.


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