A Brief History of the Minimum Wage
The term "Voodoo economics" was coined by George Bush Senior during the 1980 Republican primaries when he ran against Reagan. When Bush was picked as Reagan's Vice President, oddly enough he stopped using the term. Meanwhile his own son GWB took the policy and put it on steroids with his tax cut for the ultra-wealthy, doubling of military spending, disregard for intellectual property exportation and total lack of financial industry oversight, culminating in the collapse of 2008. We still live in the post-GWB Supply-Side era when it comes to economic policy. Obama merely made it once-again palatable to the Faux Newstard masses.
By the end of Reagan's 8 year term, the U.S. had transformed from being the world's largest creditor nation to being the world's largest debtor nation. The Federal debt tripled in 8 years from $900 billion to $2.6 billion. Federal debt now stands at $16 trillion, a 9% compound annual growth rate over 33 years.
Empire of Debt
Total U.S. debt (red) (All sectors) v.s. GDP (blue)
In 1949 - right after WWII - this ratio was 128%. Today it's 400%
The consumption-oriented lifestyle is doomed:
Corporate Profits and Wages as % of GDP:
Obama's Pseudo-Recovery is the Biggest Lie Ever Sold
Despite U.S. debt (red line, right scale) doubling in 7 years, the total number of jobs (blue line) is lower than it was in 2007. Meanwhile there are 17 million additional people in the U.S. now. Is it any wonder the labor participation rate is plummeting? Fewer jobs yet more people.
$8 trillion in debt divided by 8 million *new* jobs equates to a cost of $1 million dollars per job. Unfortunately, half the jobs created last year pay $18/hour or less.
Turning Third World
Four Decades of Stagnant Wages
The inflation-adjusted median wages of what the typical male worker receives - removing any skew of highly compensated employees - has been stagnant for forty years, since 1973. Women's wages have been rising, during that time however are they are still below men's wages.
At least Billionaires Are Better Off
ALL IN @Dow Casino (Yes, Again)
Below the Dow (blue line) with total U.S. debt (red line) now at $60 trillion. Whatever "deleveraging" was supposedly happening after 2008, was just another widely accepted lie. But of course, as long as the Dow keeps rising, the Idiocracy can't be bothered about reality:
The third and last debt/monetary inflated bubble in a row. When this one implodes, it will be a lesson they never ever forget.
S&P 500 with Options Volatility (VIX)
Despite debt levels higher than 2007 and sovereign debt risks higher than ever, markets are massively complacent. The status quo is just assumed to be indefinitely sustainable.