Why I Have Such A Negative Economic Outlook
A guest post over at Zero Hedge basically makes my argument that I’ve been trying to make for a couple years now. The article does an indepth analysis of the average Joe who is struggling to get by in America these days.
The author goes through average income levels and average expenses and concludes that the average Joe is essentially in the red each month. Click on the link above and read through the analysis if you want the details. On the whole, we pay too much for things and we don’t make enough money. The result is a lack of wiggle room or buffer.
The resulting conclusion is that because of this average Joe analysis, there won’ t be a sustainable economic recovery here in the U.S. Savings are required to fuel the economy over time and we’re just not able to save any money right now with the way household finances are structured right now. We essentially NEED deflation in order to get household incomes in check with expenses, which of course will kill the recovery.
Let me know if you believe the author of the post is off in any way or if you have a different conclusion than the author. I encourage your feedback!