Not so fast. Those that are publicly declaring that an economic recovery has arrived are ignoring a whole host of numbers that indicate that the U.S. economy is in absolutely horrendous shape. The truth is that the health of an economy should not be measured by how well the stock market is doing.
Rather, the truth health of an economy should be evaluated by looking at numbers for things like jobs, housing, poverty and debt. Some of the latest economic statistics indicate that unemployment is getting a little bit worse, that the housing market continues to deteriorate, that poverty in America continues to soar and that our debt problem is worse than ever.
If we were truly experiencing the kind of economic recovery that the United States has experienced after every other post-World War II recession we would see a sharp improvement across the board in most of our economic statistics. But that simply is not happening.
Sadly, this is about as much of an “economic recovery” as we are going to get because soon the economy will be getting much worse. So enjoy this period of relative stability while you can.
The Obama administration would have us believe that unemployment in the United States has declined, but the truth is that the percentage of working age Americans that are employed has stayed very, very flat for more than two years and now there are some measures of unemployment that are actually getting worse.
For example, according to Gallup the unemployment rate in the United States has risen from 8.5% in December to 8.6% in January to 9.1% in February. The Obama administration would have us believe that it is actually going the other direction.
Initial unemployment claims are rising again. For the week ending March 3rd, they increased by 8,000 over the previous week to 362,000. This is not the kind of good news that people were hoping for.
What the U.S. economy could really use are millions of good jobs. But those are being shipped out of the country at a staggering pace.
Right now there are millions of Americans in their prime working years that are sitting at home wondering what to do with their lives. The average duration of unemployment in the United States continues to hover near a record high, and if we were truly experiencing an economic recovery it should have been falling by now.
But a lot of Americans have bought into the propaganda about an economic recovery and they are out running up huge amounts of debt once again. In January, consumer credit increased by much more than expected. The following is from a recent Reuters report….
Nonrevolving credit, which includes auto loans as well as student loans made by the government, rose $20.723 billion during the month. That was the biggest increase in dollar terms since November 2001, when credit was surging in the wake of the September 11 attacks in New York and Washington.
Don’t fall into the trap of debt slavery. During the last recession millions of Americans lost their homes and most of what they owned because they got overextended.
Don’t do it.
The U.S. housing market continues to deeply struggle as well. If we were really in an economic recovery housing would be bouncing back. But that is not happening. Just consider the following facts….
*The number of new homes sold in the United States continues to hover near a record low.
*U.S. home prices in the 4th quarter of 2011 were four percent lower than they were during the 4th quarter of 2010.
*According to CoreLogic, 22.8 percent of all homes with a mortgage in the United States were in negative equity as of the end of the 4th quarter of 2011. That was an increase from 22.1 percent in the third quarter.
Why are things still getting worse for the U.S housing market?
That is a really good question.
We should have seen some improvement by now.
But it isn’t happening.