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Editorial Economic Wellbeing
Recent
economic history helps figure out New Normal #1 was the high profits and wages made possible by WW 2 generated savings and pent-up consumer demand plus a lack of meaningful foreign competition. Its demise began in 1973 as business faced added pressure created by OPEC oil embargos soon to be enhanced by increased Asian competition. This New Normal #2 required workers and owners to compete with payroll taxes for a share of company revenue. The results were stagnating wages as measures by Census Bureau CPI measured median household income and the Rust Belt. Concurrently philosophical changes were causing New Normal #3 as the U.S. returned to lax conservative business regulations which helped consumers continued their American Dream with increased credit card debt and home improvement loans later called home equity loans. Soon the 1987 Federal Savings and Loan 160 billion dollar bailout continued A Long Existing Normal that began when the Panic of 1792 caused a federal bailout of states over-burdened by their Revolutionary War Deb. Recently some feel the Census Bureau poverty rate being stuck at 15 percent is New Normal # 5 though using Federal Reserve recommended adjustments plus adding noncash safety net transfer lowers the rate to five percent. Another Long Existing Normal is continuing business success as US Companies competed very well in a flat world using technology, outsourcing to Asia, Mexico...and by keeping wage increases low. Another Long Existing Normal is Continued Increased Citizen Wellbeing caused by a stable society which allowed almost continuous economic growth and provided a large though poorly accounted for public safety net. Also providing wellbeing is scientific which has cured diseases, created smart phones, streaming audio-video, Gillette Stadium ... Finally personal Income increased continuously if not always rapidly because nature and nurture improved the personal characteristics needed to enhance wellbeing. Comments to antonw@ix.netcom.com
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