Reply #3: I Am Not Going To Go Over Every Equation, But. . . [View All]

[ProfessorGAC]

. . .the economy is not based strictly on GDP growth. The indexing that would be done through modeling would indicate the growth as being unsustainable and arbitrarily positive due to the shift from consumption to gov't spending as well as the fraction of consumption with too high a fraction of debt. The combination of gov't and private debt is a long range economic drag as it causes monetary inflation, which is a leading factor in price inflation.

The weak increase of median household income v. inflation reduces the buying power of the middle 90% of income earners, which is the primary lever of consumption.

So, this economy is a illusion based upon the convenient examination of the numbers they like, and the ignoring of medium and long range factors that indicate the opposite. And, the latter are more abundant and exert greater leverage on the factors they do like.
The Professor