August 6, 2012

Recoveries: The Difference the Debt Makes (Not to Mention the Government's Focus)

Justin Katz

Earlier today, Glenn Reynolds linked to an American Enterprise Institute post by James Pethokoukis, drawing on charts from economist John Taylor showing that the United States economy hasn't been returning toward where it would have been without the crash, and that this is unusual for prior downturns.


The reasons, I think, can be inferred from this chart, which I created with a view toward answering the question of whether it's reasonable to continue expecting 7-8% returns on pension fund investments:

U.S. Stock Market Growth Compared with National Debt, Consumer Credit, and GDP, 1943 to 2010

Continue reading on the Ocean State Current...

Comments, although monitored, are not necessarily representative of the views Anchor Rising's contributors or approved by them. We reserve the right to delete or modify comments for any reason.

Add a few more lines and a couple of colorful "data" points and you might pass this off for a Jackson Pollack.

Have you been tapping his pill bottles?

Posted by: OldTimeLefty at August 10, 2012 12:49 PM
Post a comment

Remember personal info?

Important note: The text "http:" cannot appear anywhere in your comment.