The April 20-23 Gallup survey of 1,013 U.S. adults found that only 27
percent said the economy is growing, 29 percent said the economy is in a
depression and 26 percent said it is in a recession, with another 16
percent saying it is "slowing down".
That means that more Americans think the country is in a Depression, let alone recession, than growing.
How can so many Americans believe that we're in a depression, when the stock market and commodity prices have been booming?
Well, it seems that instead of directly helping the American people, the government threw trillions of dollars at both the giant and foreign banks (including believe it or not the Bank of Libya). The big banks have - in turn - used a lot of that money to speculate in commodities, including food and other items which are now driving up the price of consumer necessities as well as stocks. Instead of using the money to hire Americans, they're hiring abroad and getting tax refunds from the government.
But don't rising stock prices help create wealth? Not really.
A rising stock market doesn't help the average American as much as you might assume.
Some cheerleaders say rising stock prices make consumers feel wealthier and therefore readier to spend. But to the extent most Americans have any assets at all their net worth is mostly in their homes, and those homes are still worth less than they were in 2007. The "wealth effect" is relevant mainly to the richest 10 percent of Americans, most of whose net worth is in stocks and bonds.
That means that more Americans think the country is in a Depression, let alone recession, than growing.
How can so many Americans believe that we're in a depression, when the stock market and commodity prices have been booming?
Well, it seems that instead of directly helping the American people, the government threw trillions of dollars at both the giant and foreign banks (including believe it or not the Bank of Libya). The big banks have - in turn - used a lot of that money to speculate in commodities, including food and other items which are now driving up the price of consumer necessities as well as stocks. Instead of using the money to hire Americans, they're hiring abroad and getting tax refunds from the government.
But don't rising stock prices help create wealth? Not really.
A rising stock market doesn't help the average American as much as you might assume.
Some cheerleaders say rising stock prices make consumers feel wealthier and therefore readier to spend. But to the extent most Americans have any assets at all their net worth is mostly in their homes, and those homes are still worth less than they were in 2007. The "wealth effect" is relevant mainly to the richest 10 percent of Americans, most of whose net worth is in stocks and bonds.
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