What You Suspected About The Economy Is True: It’s All A Fantasy

Kevin Phillips, author of Wealth and Democracy and Bad Money, and being of a somewhat conservative bent, writes in the May Harper’s that the American economy, as described by the official economic agencies of the Federal government, is a tissue of lies, distortions, and statistical tricks put into place during the last twenty-five years or so.

To quote from the beginning of his conclusion:

The real numbers, to most economically minded Americans, would be a face full of cold water. Based on the criteria in place a quarter century ago, today’s U.S. unemployment rate is somewhere between 9 percent and 12 percent; the inflation rate is as high as 7 or even 10 percent; economic growth since the recession of 2001 has been mediocre, despite a huge surge in the wealth and  incomes of the superrich, and we are falling back into recession. If what we have been sold in recent years has been delusional “Pollyanna Creep,” what we really need today is a picture of our economy ex-distortion. For what it would reveal is a nation in deep difficulty not just domestically but globally.

Remember that this would have been written a few months ago, and things have steadily worsened.

The article is titled Numbers Racket: Why the economy is worse than we know. It’s well worth reading. It’s not available online.

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3 Responses

  1. The American economy is in the toilet. I have a bad feeling that we may have to get used to using the “D” word soon.

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  2. Bush sold off the gold reserve and invested in oil, so bizarrely enough, the high price of oil is the only thing keeping America afloat but that’s only a temporary stay of execution.

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  3. Oh, it’s going to get much, much worse, IMO. Between global warming (real, no matter who/what’s to blame) and the growing scarcity of oil, the American way of life is going to be undergoing some drastic changes.

    Globally, I think we’re about to see many more regional wars.

    For some fun reading, check out Clusterfuck Nation

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