In December, the federal government released information that the gross domestic product was up 4.1% for the third quarter of 2013, and that 203,000 people had been employed, bringing the unemployment rate to 7.0%.
Time to pop the champagne corks; it finally appears the recovery is taking hold, right?
![]() |
| Jobs lost, October 2006 – October 2013 |
![]() |
| Increase in real disposable income, 1979 – 2010. (Graphic source: Washington Post.) |
Somebody forgot to tell the rest of us. While the Bloomberg consumer confidence level is the highest it’s been since August, it’s still not where it was in November 2007. A recent Gallup survey showed that almost twice as many Americans believe the economy is “poor” as believe that it is “excellent” or “good”, and that over half believe it’s getting worse. Over 4 million of the 8.656 million jobs lost from October 2006 to October 2009 are still missing from the economy; many of those who lost jobs left the market and haven’t returned.[1] Congress is shutting off extended unemployment benefits even though the average length of unemployment is still 37.2 weeks, over twice as long as in September 2007 (16.3). ABC News tells us, “While more than 2 million new jobs were created in 2013, a large share of them were low-income retail and restaurant positions.”
If that weren’t enough of a buzz kill: Alan Greenspan reminds us that businesses still aren’t making large investments in fixed assets or long-term Treasury bonds. While consumer spending is up, income isn’t rising to match. In fact, Peter
Thiel shows us that the real average income of bachelor’s degree recipients has dropped over the last ten years even as student-loan debt and college tuition increased; and Sen. Chuck Schumer (D-NY) enjoins us to “focus like a laser” on the light blue line of the graphic to your left, which shows that the middle 60% of incomes has not increased as much as even the bottom quintile.








