The Wrong Recovery

Things are supposed to be looking up. Today’s data from the Bureau of Economic Analysis gives a fuller picture: low wages and declining domestic production.

Real average hourly earnings fell 0.5 percent from October to November, seasonally adjusted

The U.S. current-account deficit— the combined balance on trade in goods and services increased to $108 billion in the third quarter of 2009, up from $98 billion in the second quarter. The main driver was the deficit in goods. With the economy beginning to “recover” people started buying again – sending more of our money overseas.

This isn’t recovery. This is putting us back onto the same wrong path we had before – a low wage economy supported by trade deficits and foreign borrowing. No, thank you. I hope.

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