Professor Mark J. Perry's Blog for Economics and Finance
Posted 8:21 AM Post Link
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Why it doesn't feel like a recovery?Oh, gee, drive around Sante Fe Springs, an industrial burg south of Los Angeles.The most prominent feature is "sale" and "lease" signs on industrial space. Space that was full up four years ago.It is brutal out there. Brutal.
The Output Gap and why it does not feel like a recovery is very interesting. The Output Gap will likely widen because the hope of Export growth adding to GDP has been stymied by accelerating Import growth.Take a look at this chart that shows Export growth in 2009 and the "end" of the Great Recession. The chart now shows Exports sagging and slow growth of 1.7% for the last quarter. Hmmm. Rhetorical Question: What is healthier for the economy; Net Export Growth or Fiscal Stimulus?
This is just what the Obama Democrats want. They say Americans are greedy, consume too many natural resources for the size of the population, and should get jobs in the "helping" professions instead of Corporate America.Their vision is being realized.
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You are kidding me.The lettusce is worth as much as the hamburger? Really?
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Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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