Thursday, June 28, 2012
Recession Holds On Tight
Sometimes I draw a stupid picture then try to make a connection with economics. At the time I drew this cartoon, unemployment is 8.3% and income is as low as levels in the 1990s. Forces tend to allow growth slowly. When growth comes too fast, such as the housing bubble, the market over corrects itself. I believe that marginal gains in the economy can be sustained. For example, if you have every tired to learn a new skill, the skill takes persistence and constant practice where many mistakes are made. The BEA just released GDP statistics that showed economy wide growth of less than 2%. I think you'll continue to see constant but small growth for the next three years.
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