So, it's okay that workers are getting paid less, because their homes are worth more. It explains how, with lower wages and higher taxes, people are spending more. Unfortunately, home prices are being artificially inflated by the Fed as well as the Federal Government, so it remains to be seen if this rise in household worth is equally artificial.
"Automakers are among those benefiting from improving household balance sheets, which is helping support sales beyond car-owners’ need to replace older models."One of my pet peeves about American consumers is that they seem to think they need to spend beyond their needs, then complain that they don't have enough. The hope here is that the extra spending will lead to some real economic growth, which will lead to more spending... and then eventually we can do this all over again.
Unfortunately, I'm out of time right now. Leave a comment, and I'll be back with more.
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