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In a must-read
interview with King World News, Bloomberg Brief
senior economist Richard Yamarone doesn't pull any punches:
When asked what’s really happening with the US economy, Yamarone responded, “I think people are just running
out of money. We have contracting,
real disposable incomes.
Most of the job creation that
we have is from minimum wage type
jobs.”
“I’m
fortunate enough to travel and speak to chambers of commerce with 300
to 500 people in the audience. They all tell me,
‘Hey, listen, I am letting go of workers. I’m hiring them back at a fraction of what I used to pay them.’
You hear
from the other side, ‘Hey, I finally got a job after two years of being unemployed. I used to make $100,000 (each year), now
I’m making $45,000
or now I’m working part time.’ Or (you
hear), ‘I used to make $500,000 and now I’m making $200,000 or making $125,000.’....
“So you
are actually seeing this collapse, contracting on a
real basis, of real disposable personal
incomes. If you don’t have the money, you
can’t facilitate expenditures. So that’s
the core of the problem. That’s what’s really going on in the US economy.
Wow, I'm
impressed -- an economist
who makes me feel like a bit of a softie!
Michael J. Panzner
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