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View Diary: Median U.S. household income fell 5% between 1999 and 2009. Globalization remains the core problem (201 comments)

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  •  I think the income data is simply following the (0+ / 0-)

    business cycle.  The peaks and troughs line up nicely with recession and recovery.  Or am I wrong?

    The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

    by accumbens on Sun Apr 24, 2011 at 05:40:34 PM PDT

    •  I was under the impression that the business cycle (0+ / 0-)

      itself is now acknowledged by most economists to be the result of periodic demand crunches, where productive capacity outruns the ability of wages and income to absorb it, and has to slow down until the incomes catch up.

      Producing a billion pairs of shoes doesn't do any good when the population doesn't have the income to BUY a billion pairs of shoes--hence the factory produces fewer shoes, and the economy shrinks.

      •  Could be, but if you look at the graph, incomes (0+ / 0-)

        peak at the stock market tops (early 80's, 2000, 2007) and fall at the stock market lows.  The economic cycle lags, but not far behind.

        The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

        by accumbens on Sun Apr 24, 2011 at 07:51:37 PM PDT

        [ Parent ]

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