I am far from an economist or political analyst but to my simple way of thinking the economy is being manipulated by both parties and the Fed as necessary to prevent collapse and anarchy. With about 50% of the population dependent on government support, 20% wanting a suitable job but having given up on finding one therefore under employed, there are about 30% employed and paying taxes. Since this is an impossible burden, the Fed just prints money and the government increases the debt. The reason the 1% is doing so well is that investment in real estate, bonds, CD’s and other bank instruments pay no return and the only place to put excess funds is in stocks. The demand for stocks drives up the multiples far greater than justified by their earnings but there are few alternatives. Since the entire world is disproportionately related to the US economy our infection has spread everywhere to add to the woes of their own mistakes.
With all the worthless paper we have created there is only one thing preventing exponential inflation and that is the lack of demand. If 70% of consumers have little or no discretionary income they can’t bid for goods and services outside of essentials. If they could get a better job they would create more misery than happiness as their new dollars bought less and less so the government uses regulations and policies to prevent risk taking capitalists from creating new businesses and expanding their current production capabilities.
The only goal now is to prevent the collapse in the lifetime of those in control. It is the best argument for accepting the concept of man-made climate change. By asking us to reduce our desire for a good life now to save the planet for when we are gone, we will stay docile and not revolt because we are sacrificing for a good cause. Also, we can keep people from thinking about all this by constantly debating meaningless issues like gay marriage, evolution, light pollution, and an endless flow of proposed government programs that limit freedom and we can’t afford anyway. It is depressing to think that we are like addicts we have to crash to the absolute bottom before we can begin a recovery.