K-12 Tax & Spending Climate: Cheap houses, poor workers

The Economist:

REAL disposable income for Americans was pretty much flat in the first quarter, according to figures released today. Spending edged up, thanks to a fall in the savings rate. But this is back to the bad old days of consumption financed on the never-never. Indeed, we seem to be attempting to reconstruct the pre-2007 economic model even though that model was shown to be deeply flawed. The recent post on profit margins was evidence of the same effect. And even the rally in the equity markets, propped up by quantitative easing, is merely a subsidy for the better-off and Wall Street traders, whose fortunes are more tied to share prices than those of the average Joe. Surely the point of economic policy is to benefit the average person, not the chosen few.

Posted by Jim Zellmer at June 2, 2011 1:57 AM
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