Monday, July 25, 2016
Federal Reserve pumping up an animal balloon. Jobs in the hard to inflate appendages.
My crude attempt at making a cartoon (collage) about the economy. Collage as parts are borrowed images from the net; from people that can draw better than me.
Cartoon is about how Federal Reserve pumps money into the economy to, supposedly, nurture good jobs. Problem is, the new money mostly goes into inflating housing and asset bubbles; like blowing up a balloon. The parts of the balloon where good jobs would happen are constricted while the center part is, possibly headed for another 2008 style explosion.
A big problem with the economy are the clamps and restrictions in the way of good jobs. Environmental restrictions due to global warming and people's aversion to seeing change in their neighborhoods. Another restriction has to do with Congress clamping down on domestic spending due to deficit worries. The third clamp is business leaders worried about uncertainty and the feedback loop of soft markets.
Meanwhile, it seems like house values keep going up in many areas. Asset values go up, but work pays less and less relative to the overall economy.