The Cost Basis of our Economy is Spiraling Out of Control

Posted on December 5, 2017 by Charles Hugh Smith WashingtonsBlog If we had to choose one “big picture” reason why the vast majority of households are losing ground, it would either be the stagnation of income or the spiraling out of control cost basis of our economy, that is, the essential foundational expenses of households, government and enterprise. Clearly, both rising costs and stagnating income cause households to lose ground, i.e. their income buys fewer goods and services every year. I’ve often covered the dynamics of stagnating income for the bottom 95%, and real-world inflation, i.e. a decline in purchasing power. But...

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