The Economist Says the US Economy is the Envy of the World: How Dumb Can Half of Americans Be Who Think Trump Would Do a Better Job on the Economy?
by John Lawrence
The October 19, 2024 edition of the Economist headlines that the US economy is the envy of the world. Yet Biden is given hardly any credit for a good economy. Why that is? The only explanation is that at least half of US citizens are terribly ill informed which is another way of saying they're ignorant. Probably because they listen to news sources totally biased against Joe Biden, the Democrats and everything they stand for. The dumbing down of American is exemplified by the fact that at the Republican convention the high point was when Hulk Hogan ripped off his shirt. Dumbing down? To the max. The cultural divide between red states and blues states may be mutating, but, as Fareed Zakaria has characterized it, it is still there. It's a divide between college educated and non-college educated people and it's a divide between men and women. One could even go so far as saying it's a divide between the well-informed and the ignorant or between the smart and the dumb. Trump's cult of personality has drug all of one side of this divide into his camp. Kamala and the Democrats represent the other side of this divide.
The left right political spectrum makes no sense any more. Unless, that is, it can be said that the left represents an intelligent approach to the problems of American society and the right represents a bunch of angry, hateful people. The right, as represented by Trump, seems to be only interested in creating an alternative universe in which facts don't matter and only an entertaining form of spite does. Half of America seems to be complicit in Trump's lies and bellicosity. Half of America seems to be entertained by Trump's antics. Half of America seems to look no farther than a bunch of symbols of patriotism characterized by Trump flags and even Trump God Bless the USA Bibles (made in China).
The American economy has now been characterized as having achieved a "soft landing." "I think we should declare a soft landing now," said James Bullard, former president of the Federal Reserve Bank of St. Louis, in an interview with CNN earlier this month.
American shoppers continued to fuel economic growth in the third quarter with their spending, according to the report. That marked the biggest contributor to GDP growth in the third quarter by far. Consumer spending accounts for about 70% of economic output. Spending accelerated sharply in the third quarter, driven by purchases of big-ticket items, while spending on services eased a bit.
So why are so many voters so concerned with the economy? Why is this the biggest issue for so many voters? The American economy is the envy of the world. However, just because "the economy" is doing so well doesn't mean that all those within it are doing well. We would have to look at the distribution of income and the distribution of wealth. Some well off people could be doing most of the spending while others have very little to spend. 31.3% of the households make less than $50,000 a year. 27.8% make between $50,000 and $100,000, and 40.9% make over $100,000. If a household is making less than $50,000 a year, they are certifiably poor. Those making $50,000 to $100,000 are probably lower middle class. They are those who probably cannot afford to buy a house, but are able to afford to pay rent. 40.9% are making over $100,000. Those making over $100,000 are probably the ones doing all the spending making the economy "the envy of the world". What about the distribution of wealth? The bottom 50% own 3% of the wealth. Obviously they don't own assets such as a house. They are renters and will remain so. Between 50% and 90% of the households own 31% of the wealth so 10% of households own approximately two thirds of the wealth. According to the latest Gallup poll, only about 54% of Americans own any stocks. Meanwhile, only about 63% of Americans own real estate according to the Census Bureau. So income and wealth are not evenly distributed over the American economy, and roughly the bottom 50% of American households have little wealth and meager incomes. The upper 50% are doing quite well, thank you.
Kamala Harris is a pragmatist. She's not ideologically driven. She combines both left and right pragmatically. But primarily she appeals or should appeal to the lower 50% in terms of income and wealth. The upper 50% traditionally vote Republican. However, Trump has attracted a cult following which includes a lot of lower income and lower wealth people. These people are voting against their self interest thinking that Trump is going to help them economically more than Kamala would. Then Kamala is attracting a lot of higher income people who want the US to remain a democracy governed by the rule of law and also want reproductive freedom. That's why traditional voting patterns are somewhat obsolete.
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