As President Donald Trump and corporate media outlets on Friday enthusiastically touted new GDP figures showing that the U.S. economy grew by 4.1 percent in the second quarter of 2018, many economists and progressive commentators were quick to counter the glowing headlines by pointing out that corporations and the rich are feasting on most of the growth while workers see their wages fall.
“What the president won’t talk about is that there is slow—and even negative—growth in real wages adjusted for inflation. So if GDP is rising, but wages [are] falling, the money is going to the top,” Timothy McBride, a health economist at Washington University in St. Louis, noted in response to Trump’s celebratory speech on the White House lawn on Friday. Continue reading →
Minatomirai 21, newly developed bayside district in Yokohama, Japan. Photo: Gleam [CC-BY-SA 3.0] via Wikimedia Commons
Let’s face it. The U.S. government is never going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year.
A lot of interest.
If the Federal Reserve raises the Federal Funds Rate, which is the interest major banks charge each other for overnight loans, to 3.5 percent and sells its federal securities into the market, as it is proposing to do, the projected tab will be $830 billion annually by 2026. That’s nearly $1 trillion owed by the taxpayers every year,and that just covers interest.Continue reading →