Where’s the dough? (OR Why things look bleak)

Me, 3 months ago:

So, we have a large majority of our country who spend an ever increasing percentage of their Republican-supressed income on food and energy. This majority will be unable to buy things to keep the econonomic engine moving.

[…]

It all comes back to money. For years, the Republicans have taken money out of our hands and we are now at a point where every last one of us needs more buying power.

Robert Reich, today:

The heart of the matter isn’t the collapse in housing prices or even the frenetic rise in oil and food prices. These are contributing to the mess but they are not creating it directly. The basic reality is this: For most Americans, earnings have not kept up with the cost of living.

[…]

[T]ypical Americans have run out of coping mechanisms to keep up their standard of living. That means there’s not enough purhasing power in the economy to buy all the goods and services it’s producing. We’re finally reaping the whirlwind of widening inequality and ever more concentrated wealth.

Sometimes, I hate being right.

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One Response to Where’s the dough? (OR Why things look bleak)

  1. […] And simply put, they haven’t been growing.” This is something I’ve written about before. Anyway, here’s a […]

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