Economic and business analysts are now confirming (like I have been telling you for the past seven years) that we are experiencing a long, deflationary trend popularly described as a long-tail recovery.
Reasonably, we expect to recover from a deflationary trend; but no, this is being described as a recovery with deflationary attributes. Robert Reich says, for example, this is the first time for a recovery with wages and salaries in decline.
This is, you see, the kind of glaring contradiction Karl Marx predicted but we are not supposed to talk about because it is not “correct thinking”–although it is entirely correct (confirmed!).
As was discussed in “The Added Identity,” the correction equity markets are now experiencing is not a bear market. Big-time arbitrageurs, like Carl Icahn, are warning that earnings without growth (all the financial engineering I have been describing and explaining for the past seven years) bodes really bad for Main Street, but not Wall Street. All that money you weren’t paid, working more for less, has got to go somewhere.
Then, notice, the right-wing comedy to curry populist sentiment. Trump’s tax plan is a real card–a real joker’s wild game that is truly “the art of the deal.” People that vote for Trump whose income does not derive from capital gains, which is just about everybody, will surely get the bad end of the deal!
Now, keep in mind, capitalists say that capitalism is as good as it gets. Everything else is worse–worse than having deflation after seven years of near-zero interest rates?
Unfortunately, the comedy turns into tragedy, and like Icahn and Reich suggest, with the coercive value of capitalism clearly lacking the legitimate equivalence the free market measures, what’s left is to test if it is really as good as it gets.