Even though with spare-labor capacity at about 45-50% there is significant demand destruction, the cost of employment is rising. Labor costs will continue to rise under pressure to raise the minimum wage, for example, which is a product of weak demand.
Weak demand is a deflationary risk. When the Fed sees wage inflation (using maximum-control authority) it is likely to raise interest rates, but deflation will not be the effect. (Normal is new, remember?) Borrowing cheap to consolidate assets and support unemployment (hoarding labor) gains resistance and, surprise, we have a modest recovery at a higher (but better-than-negative) rate of interest.
Being bonded to authority, the economic fate of just about everybody is in the hands of about one-tenth of a percent of the population.
(Where’s the self-determination–the enfranchisement–of a free-market legitimacy?)
Don’t be fooled by a modest recovery. It’s a straw man. It’s a set up to knock you down, organized to network the externalities (gaining scale).
Gaining scale (organizing the psychopathy) raises the rents to the point of default. It measures austerity in the futures (in late order) but you don’t really notice (which the elite then determine to be apathy and ineptitude) because…you are not in control!
Yielding to aristocratic authority (like Ayn Rand says it always does) yields to default of sovereign debt.
Since “The People” are sovereign, 99.9% of us are being delivered, inflated in numbers, existing on demand, privately enterprised by one-tenth in the pursuit of happiness.
(What’s wrong with that ratio, Horatio!)
As far as the ruling class is concerned, the Revolution is over and (having a middle-class identity) is a complete success.
The king no longer rules with a majority interest. Conserving the extension of rents, however, using franchises to resemble a middle-class identity, for example, capitalism is lapsing back into feudalism more and more all the time to protect the peasants from “the risk” by default.