To the editor: Many people view our economy as “good” because of the reported low unemployment rate and the current healthy stock market reports. Perhaps this thought is delusional.

The low unemployment rate does not reflect income inequality. Realistically, the top 1/10th of a percent of the people received more than 90 percent of the income. Yes, “receive,” not “earn.”

Income among Americans is grossly unequal and unbalanced. This is a major problem. The income most frequently paid to Americans, referred to as the “modal income,” is significantly less than the “median,” or the middle income among workers. This signifies that although many people are employed, a huge segment of these people are working at poverty level and do not make a decent wage. This certainly does not support the fact or belief that our economy is in “good shape.”

The current stock market level is another delusion that many believe is a reflection of a sound economic state. The market, in its current ecstatic and jubilant mood, is a belief-driven creature. However, it has not yet internalized with Trump’s imposed and proposed tariffs, low wages and reflection of unreliable, unbalanced and erratic leadership. My thought (I learned this from business associates in the southern U.S.): “Katie, bar the door.”

Yes, there is trouble ahead! When the individuals or factors that control the market begin to swarm in different directions, like a flock of woodpeckers, people will want to know who is to blame. I wonder how far the people who use this measurement as a factor in economic characterization will fly, and where they will roost and hide?

Regards,

Kenn Splitt

Kulpmont

(2) comments

Schreff

As I read so many uninformed individuals who understand little to nothing about the economy but have severe Trump derangement system I wonder were they brainwashed by Fake News. Economists, even Obama's economist, are reporting on all the latest employment records achieved by President Trump. Most intelligent folks realize that our USA was strangled by regulations, cheated by so-called trade deals, and burdened by too high tax rates. Our economy is performing on record levels moving up from Obama's economic stagnation and Bush's recession. Sure, economic cycles go up and down just like the stock market but President Trump's economic policy is the reason for our recent economic upturn. Those who want socialism at the worst and bigger government at the least need to ask themselves a simple question, " When has the federal government succeeded in their social programs? ", the answer is never.
Do your research my friends but make sure it isn't Fake News research which is nothing more than propaganda which states that if you tell a lie often enough more and more folks believe it.

timmannello

I agree Mr. Splitt.

President Donald Trump has scored an economic touchdown. He and and no one else has carried the ball into the nation’s economic end zone. That's the President's story and he is sticking to it.

There is no denying it. President Donald Trump punched it in for a score from the one yard line. Forget that President Obama ran it out from deep in his own end zone, all the way down the field, first down by first down, to the doorstep of the goal line . Please join me. Let’s give President Trump all the credit he demands for his one yard plunge. Rah. Rah, Rah...Go Trump Go.

Actually Ken Spllitt’s description of our current economic condition is far more accurate than all the hoopla over President Trump’s economic miraculous mirage. I just wrote an article for another publication comparing key economic indicators for President Trump and President Obama’s tenures. So far the economy’s performance under President Trump is almost as good as it was under Obama.

But things are bound to go south, as Mr. Splitt argues when we experience the effects of a poorly targeted and timed stimulative tax cut, the abandonment of multi-lateral trade deals, the rebuffing of our allies, the instigation of trade wars, the economic effects of our environmental and financial deregulation, and decisions made on the basis of “gut over brains.”

And when all that happens, it will be Federal Reserve and not President Trump who will be at fault. He is already preparing us for that rendition of habitual scapegoating.

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