Real Recovery For US Economy

 | Jul 02, 2013 05:14AM ET

Summary: Many people look at the US economy since the crash and deny there has been a recovery. Or a “real” recovery. That’s false. This is the 5th in a series about our recovery; today we examine those parts of the US economy that have recovered — some even making new highs. That’s too bad for the laggards, such as most Americans, but does not make the recovery less real. It does mean that the recovered sectors are unlikely accelerators of future growth.

Contents

  1. Wages – the big “tell”
  2. Vehicles
  3. Business capital expenditures
  4. Consumer Credit outstanding
  5. Housing – our savior?
  6. Other posts in this series
  7. For More Information
(1) Wages

Before we look at the strong sectors, note the big “tell”. The government’s stimulus programs have boosted profits and increased wealth of the 1%. But they have not brought much benefit to most Americans. Inequality has risen, real wage growth stagnate. Here’s the latest in a long stream of evidence, from the Bureau of Labor Statistics . This suggests that a fundamental shift has occurred in the structure of the US economy, as we passed a tipping point beyond which prosperity only trickles down.