Huffington Post has an interesting article up this morning that, like much of what they publish, contains a nugget of truth wrapped in a fascia of nonsense.
The truth is found in the headline and first couple of paragraphs:
Companies are squeezing greater profits out of their employees, even as layoffs rise and the outlook for hiring and raises remains mixed, a recent study has found.
That's called "productivity." It is what drives economies. It is also what leads to a natural deflationary tendency in the economy over time - one that pundits and so-called "economists" try like hell to dismiss and claim doesn't exist.
But the wrapping of the message in the "big lie" is found in the picture above the story - an older woman waving a sign in protest: I did not cause the recession.
Sorry, but the evidence is overwhelming that the common man and woman most-certainly did.
It was, indeed, two acts over the space of more than 30 years that caused the mess we're now in:
The fact is that debt saturation at all levels is why we're in this mess. It is also why we cannot get out of this mess without recognition of the truth and removal of the excess leverage through the economy. Attempting to play games with these facts will simply make the malaise worse and risks an all-on collapse.
Fairy tales make for good bedtime stories but horrible public policy, and those who attempt to substitute them for cold, hard mathematical facts, along with the screaming mouthpieces that pen articles such as the above, deserve everything that is coming to them.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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