Class Warfare Blog

May 19, 2019

We Are Using the Wrong Economic Indicators

Filed under: Economics,Politics — Steve Ruis @ 12:08 pm
Tags: , , ,

Currently our “news media” (whatever the heck that is now) are trumpeting things like the US GDP (Gross Domestic Product), unemployment statistics, average wages, and Dow Jones stock index levels as indicators of the “health” of the economy. And, boy is the economy strong!

Wrong, wrong, wrong, wrong.

These indicators were chosen by the elites to serve the elites.

Consider the Gross Domestic Product, a measure of how much we produce in goods and services. How does that reflect on the welfare of the nation’s citizens? It doesn’t. It indicates how “productive” the economy was . . . but in service to whom? If all of the nation’s output was shipped overseas, the GDP wouldn’t change, but the indicator would indicate how well we were serving overseas customers, not Americans. Shouldn’t economic indicators indicate how well our economy is serving our citizens? (We the people, etc.)

Maybe a Gross Consumption Index would be a better measure. No matter how much we are producing, Americans won’t buy things when they are feeling economically insecure. So, it is more important how much Americans are consuming than they are producing. Is there such an index? If so, you couldn’t tell from the news organizations.

And don’t get me started about unemployment statistics. The number of full-time jobs with benefits is still shrinking, only to be replaced by part-time jobs with no benefits and shit wages. But unemployment is at a record low! Oh, and we don’t count people who have officially stopped looking for a job.

Average wages? Give me a break! Median wages, the wage at the exact middle of the wage spectrum has been decreasing! This means that there are more people making less and just a few making much, much more than that number.

The whole purpose of these misleading “economic indicators” is to convince us that the politicians are doing their jobs. Unfortunately, they are doing it for only the wealthiest among us.

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