Two charts from the St. Louis Fed help explain at least partly the disconnect of our so-called recovery:
Note that total U.S. output has rebounded from the recession and even surpassed its pre-recession high.
But take a look at gross domestic product per capita:
As of the latest measurement taken, at the end of 2011, it was still well below its pre-recession peak. And this is a measurement that includes Bill Gates and Warren Buffett, so you can imagine how it might look if it were only focused on average earners. The second chart is the more meaningful measure, and shows how low demand and high unemployment are continuing to hold us back. The scary thing is that America is doing better by this measure than most other developed countries, especially the ones that have gone for full-out austerity.
And Don’t Miss: Analysis of Dow 30 shows declining share of tax burden as share of profits | Washington Post
Today’s Econ Haiku:
The stock market roars
The labor market whimpers
Not a sound posture