Economics @ ITT

The 3 Biggest Lies about the US Economy

Posted in economics, employment, macroeconomics, Policy Issues by ittecon on July 1, 2010

This Wall Street Journal article is not their typical faire.  Brett Arends notes that the emperors are wearing no clothes. Unemployment is not under 10% unless you accept the manipulated government definition which is designed to produce a lower number.  If you aren’t white, you are doing even worse.

The media and congress have been railing against the deficits, but as this article points out, this risk should be captured in the bond market, but bond markets have been steadily low indicating that investors don’t reflect this belief.

The third myth contends that the US is sliding into Socialism. Milquetoast President Obama is a Corporatist. He might talk the talk, but he clearly does not walk the walk. Obama is not an ideologue, and that is one of his biggest fault. Nonetheless, Federal spending versus the size of the economy is about where it was when Reagan was in charge. Some Socialist.

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