The above illustration from Binbougami Ga is appropriate to economic hardship.
the correlation between the percentage of people working and money velocity was strong until 2010. In the post-2009 recession “recovery,” the percentage of the populace with jobs rose modestly, but money velocity absolutely cratered to unprecedented lows.
The correlation between more people working and money velocity is commonsensical. More people working = more household income = more spending = higher money velocity.
But something changed in 2010. Did the quality and compensation of work change? Joseph observed: People started going back to work after the official recession ended in Q4 2009 but they were working for lower pay. With lower pay comes less disposable income, hence the cliff-like drop off in velocity.
Another potential factor is higher inflation.
the US population, currently at 323.2 million, has grown by 16.5 million people since the Great Recession. Which is exactly why the unemployment problem has become so intractable: job growth has been less than population growth!
Here’s how Union Pacific is dealing with this issue, via Google Earth, on May 3: 292 engines idled on a siding west of Benson, Arizona, along I-10, for a stretch of nearly 4 miles.
Hong Kong’s retail business has taken a severe beating, with first-quarter sales plunging 12.5 per cent in a worrying reflection of the economic impact of mainland visitors spending less.
It was the poorest first-quarter performance since 1999, when a 13.8 per cent nosedive was recorded, and the worst may be yet to come.
However, the pace of the retail market slump slowed last month, as the 9.8 per cent plunge in March was less precipitous than in January and February, when sales contracted 13.6 per cent year on year.
Retailers suspect they haven’t hit the bottom yet…
The current US economic system is doomed to failure, Dr. Ron Paul notes; however, the problem is that the global economy is suffering from inconsistent financial policies and is heading toward stagnation and, possibly, a new global financial crisis.
Former Republican congressman Dr. Ron Paul stresses that the current US economic system has serious flaws: it has nothing to do with genuine “free markets.”
“I am a champion of free markets, but not of the current system that we have today. I am highly critical of it, because it is designed to fail. It is designed to reward the rich; it is designed inevitably to destroy the middle class, and also to finance some of the worst things in government: all the deficits with the welfare state and for the warfare state,” Paul told RT’s Boom Bust show.
The 120-nation Non-Aligned Movement said that the recent US Supreme Court decision allowing victims of Iranian-sponsored terrorist attacks to collect $2 billion in damages from the Islamic Republic is illegal.
Seriously, though, watch Binbougami Ga.