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AP: Income Inequality Is Hurting US Economy

From an utterly shameless Associated Press:

AP survey: US income gap is holding back economy

By Christopher s. [sic] Rugaber | December 17, 2013

WASHINGTON (AP) — The growing gap between the richest Americans and everyone else isn’t bad just for individuals. It’s hurting the U.S. economy.

So says a majority of more than three dozen economists surveyed last week by The Associated Press. Their concerns tap into a debate that’s intensified as middle-class pay has stagnated while wealthier households have thrived.

Isn’t it funny how the ‘economists’ that the AP consults always say exactly what the Obama administration and the Obama administration’s media (like the AP) want them to say? What are the odds?

A key source of the economists’ concern: Higher pay and outsize stock market gains are flowing mainly to affluent Americans. Yet these households spend less of their money than do low- and middle-income consumers who make up most of the population but whose pay is barely rising.

"What you want is a broader spending base," says Scott Brown, chief economist at Raymond James, a financial advisory firm. "You want more people spending money."

Remember how consumer spending was condemned by these same ‘economists’ during the Bush years?

Spending by wealthier Americans, given the weight of their dollars, does help drive the economy. But analysts say the economy would be better able to sustain its growth if the riches were more evenly dispersed…

Which is why socialist countries always have such booming economies. Just look Venezuela. Or Cuba. Or the Soviet Union.

A wide gap in pay limits the ability of poorer and middle-income Americans to improve their living standards, the economists say… Those trends have fueled an escalating political debate. In a speech this month, President Barack Obama called income inequality "the defining challenge of our time."

Obama also called for an increase in the federal minimum wage, now $7.25. Republican leaders in the House oppose an increase, arguing that it would slow hiring…

In reality, Obama needed a distraction from the Obama-Care fiasco. So he ‘pivoted’ to class warfare. And the AP and the rest of his lickspittle minions had to also pivot.

Among the economists’ other views:

— The Obama administration’s health care law will make little or no difference to the job market…

Which is also what Obama says.

— The stock market isn’t in a bubble…

Which is also what Obama says.

— Inflation in the United States will remain low for the long run…

Which is also what Obama says. (And never mind the price of gas or food or clothes.)

Economists appear to be increasingly concerned about the effects of inequality on growth. Brown, the Raymond James economist, says that marks a shift from a few years ago, when many analysts were divided over whether pay inequality was worsening.

Now, he says, "there’s not much denial of that … and you’re starting to see some research saying, yes, it does slow the economy."

Mr. Obama says, ‘jump!’ and the AP and their trained ‘economists’ say, ‘how high?!’

Even Tass and Pravda would be embarrassed at such a show of servility. But not our ‘free press.’

This article was posted by Steve on Wednesday, December 18th, 2013. Comments are currently closed.

3 Responses to “AP: Income Inequality Is Hurting US Economy”

  1. Petronius says:

    One-note Charlie.

    Karl Marx redux.

    Little Lenin says it again.

    And again.

    And again.

    Same-old same-old.

    You like class warfare.

    You like redistribution.

    You’re a communist. We get it.

    Congratulations. We’re happy for you.

    May you rejoice in your murderous pseudo-religious collectivist ideology.

    You’re welcome to it.

    But please stop hectoring us. We’ve heard it all before, and we’re sick of it.

    We heard it from Stalin.

    We heard it from Khrushchev.

    We heard it from Saul Alinsky, Fidel and Raul Castro, Daniel Ortega, and Hugo Chavez.

    We heard it from our college professors in the sixties.

    Repeating it won’t make it true.

    Nobody believes it anymore.

    Nobody cares anymore.

    Not the Russians, not the Chinese, and certainly not the Eastern Europeans.

    Nobody but you and your stupid commie thug stooges like Christopher s. [sic] Rugaber.

    So bugger off.

  2. untrainable says:

    So Bill Gates, and Leonardo DeCrapy-o, and every professional athlete making obscene “profit” from their genetic lottery luck should give up all their money so that it can be given to the “poor”. Yeah, not holding my breath. You want to talk about income inequality, then everyone should make the same amount of money no matter what they do, or where they work. Yay for fairness. One question… Do you want fries with that, or would you rather have the 40 inch plasma TV? They cost about the same in our new fair world. Oh, and the Big Mac is now on the $800 Meal Menu, so it’s even cheaper than the fries. Better bring back the incandescent light bulb. We’ll be needing them for the heat.

  3. heykev says:

    These must be the same economists who don’t know what direction the economy is headed. Get employment numbers wrong…etc.

    I guess Democrat economists can be wrong almost 100% of the time and still be their “go-to” guys for quotes and information. In any other occupation, you be out of a job.


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