What Recovery? __ Part II, Systemic High Unemployment?

Asylum Watch

In Part I of this series, we examined money velocity (the number of times the money supply circulates in the economy over a year), which is directly related to economic growth, GDP, and found that it has been declining since 1999. The velocity of money is currently slower than it was in the Great Depression. We noted that the stock market has recovered nicely and corporate and banking profits are up and Wall Street investors are doing well. This suggest that the money supply is circulating at a higher rate for big corporations, big banks, and big Wall Street investors and less so for the folks on Main Street.

While writing Part I, I came across an article by Charles Hugh Smith, Why Employment Is Dead in the Water, where he said:

Employment is dead in the water because opportunities for organic expansion are few and the cost…

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