This Recession Will End as a Depression

"Our country is getting poorer. Part of the decline is due to the economic recession; part of it is due to the secular decline that has been addressed in several articles on this website (here is a recent one). Sentier Research recently released a report detailing what has happened to median incomes in this country:

After adjusting for changes in consumer prices, median annual household income declined during the recession, from $54,916 in December 2007 to $53,508 in June 2009. During the “economic recovery,” real median annual household income continued to decline, standing at $50,964 in June 2012. (Income amounts in this report are before-tax money income and are presented in terms of June 2012 constant dollars).

We were told that the “recession” ended in June 2009. Most people don’t believe we exited the recession and there is little evidence that these people are wrong. Overwhelminging negatives still dominate the so-called recovery:

• Unemployment remains at abnormally high levels, despite the favorable accounting for people who have given up and left the labor force.
• Tax revenues continue to lag.
• GDP, which normally roars at the end of a recession, is dismal.
• Massive stimulus has been tried to alter these issues, but have failed to do so.
• The government has wasted resources and committed future generations to over $5 trillion in new debt.
• There has been no growth surge (usually quarterly GDP growth of 5 – 6% coming out of a recession. Instead growth lingers around 2% with expectations that we are going to have a “double-dip.”

Sentier Research provides evidence that there has been no end to the recession..."

at  http://www.munknee.com/2012/08/this-recession-will-end-as-a-depression/