This Author sometimes finds irritation with the presentation of modern Economic data. Economists today only present what they imagine is a glowing Picture of the Economy. A prime example is the issue of Labor Income. Economic Reports describe Labor Income as rising based on total increase of Wages (below the Inflation rate, but Weekly salaries are actually ahead of the Inflation rate because of the rise in Wages plus increase of number of Hours worked). This provides only directed data to encourage belief in the Economy.
It probably needs statement here that the Author has the interest of Labor at heart, but is not the primary issue in this case. The importance stands in the fact that the Trade Deficit will only be constrained by reduction of Imports, these only held back by Consumer loss of Disposable Income. Serious examination requires more than a Cheerleading Squad. Questions which the Author would like answered:
How much has Energy Costs increased as percentage of Household Income?
What is the percentage increase or loss of Household Income is Consumer Debt interest?
What average percentage of Card limit are Credit Cards utilized(how close to being maxed are these Cards)?
How much has Food Costs increased as percentage of Household Income?
What is the current average Age of automobiles in this Country?
The restraint of Consumer Discretionary Spending will reduce the Trade Deficit, and also actually increase the Savings rate. The Above questions already have answer, but are not publicly disseminated due to fear of Market reaction. Accurate Economic modeling, though, requires Economists communicate among themselves--outside their given Specialties, else innate error be built into the Models. lgl
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