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View Diary: The Single Fact that Explains Why this Recovery is Slow (100 comments)

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  •  Income stagnation fueled by (0+ / 0-)

    depressed private sector employment growth. Job creation has flatlined since the dotcom bubble burst.

    I'd add another data point: worker productivity. The U.S. loudly trumpets the fact that it has the most productive workers in the world, but what that essentially means is fewer workers doing more for less. Part of this "productivity boom" is a function of technology, which displaces human capital when deployed. Another part comes from treating global labor markets as a level playing field.

    So-called "supply side" theory conveniently overlooks the fact that 70 percent of GDP in the world's largest economy comes from consumption, and cutting the economic legs out from under the US middle class is a recipe for global economic collapse.

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