The "Booming" Economy
Analysts say that the American economy is booming but, when you look at the hard facts, one must question for whom it is booming.
- Gold on Tuesday broke through the $700 a troy ounce level for the first time in 25 years. http://news.ft.com/cms/s/8251cfee-df89-11da-afe4-0000779e2340.html
- The dollar slid to one-year lows against the euro, sterling and the Swiss franc on Wednesday.
- The economy is on track to grow by about 3.5 per cent for the second consecutive year. [But] strong growth has also owed much more this time to higher debt and lower savings. During the late 1990s’ boom the savings rate dropped from 3.6 per cent to 2.4 per cent. In the past three years it has fallen more steeply from 2.1 per cent to minus 0.5 per cent.
- Maytag axes 4,500 Whirlpool jobs
- Despite the "booming" economy, there is now an average of 2,000 new bankruptcy filings each day here in America. http://moneycentral.msn.com/content/Banking/bankruptcyguide/P143823.asp
If the economy is indeed "booming", who is reaping the windfall? If economic growth is fueled by increased consumer debt, what happens to the economy in light of the lack of bankruptcy protection and the questionable future of Social Security? Are we simply delaying the inevitable?