Solid US Hiring, Americans Anxious

http://www.cnbc.com/id/102163705


This article highlights the main difference between the great upswing in the economy, and the inability of the public to recognize it. The article serves to highlight the reasons of the public's misinformaton or conception of the markets improvement. While overall wages increased 3 percent over inflation, the went up over 10 percent for the wealthiest 10 percent. This sort of wage inequality is causing a lack of recognition of the overal upswing in the economy. Unemployment is at a 6 year low, and this years average monthly gain in jobs is the best its been since 1999.

This sort of misonception is leading to a change of power in office, as many of the public reflect their dissatisfaction with the upheaval of their current powers. With replublicans in office, their will be a huge cut in government spending, with a tax cut as well. The tax cut will increase wages, and therefore increasing the demand curve. However, we know the government spending multiplier would increase overall demand more than a tax cut would, so the effects may turn out to be more detrimental than helpful.