Jocularity in RomneyWorld
US employees would have nearly $10,000 more in salaries if their share of GDP growth had remained the same as their share in 1970. The stark calculation of the reality of trickle down appears below. A republican once called it Voodoo economics. We are still in its trance, and we are marching off a cliff.
Let’s take a breather on the populist spin of this and focus on the economic dynamics. It is indisputable that the US has a consumer economy- since 2001, 70% of our GDP was consumer spending. Ask yourself this macro question: does it matter that $1.35 trillion dollars is being withheld from the purchasing power of US consumers? It’s not just the US farms that are drying up. Shortsighted decisions by US businesses are starving the goose that is laying golden eggs.
Here is the calculation:
- This federal reserve graph* shows that since 1970, the share of US GDP going to workers has declined from 53% to 44%. A reduction of 9%
- 9% of 2011 GDP is 1.35 trillion dollars
- There are 145.5 million employees in the US
- The 9% reduction in their salaries is $9278 per year.
Romney has deep beliefs and sincerely thinks he is God’s gift to US economics. It truly is a tragic joke.
*Graph: Compensation of Employees, Received: Wage and Salary Disbursements (A576RC1)/Gross Domestic Product (GDP). Source: St. Louis Federal Reserve. (link)