Taughannock Falls

Taughannock Falls
from: althouse.blogspot.com

Friday, October 29, 2010

An ever-shrinking slice of the pie

Here's a quick visual that helps to explain our current demand crisis and associated high unemployment. Note that nine out of ten Americans have far less than half of the nation's wealth. Where can consumer demand come from? Even if the wealthiest Americans were to all start spending like drunken sailors on shore leave, it would do little to help. Luxury yacht-makers and high-end jewelers can only employ so many people. Working Americans must be paid sufficient wages to support a middle-class lifestyle. Cars, refrigerators, lawnmowers, etc. won't be purchased in larger numbers until more Americans have larger paychecks. It's really that simple. Republicans, who suggest that the real problem is that poor folks with a bit more than $3/day of food stamps, are "too darned comfortable," are either deranged, deceptive, or both.

1 comment:

Ulysses said...

P.S.-- Clicking on the chart will make it larger!