John Williams – Real Earnings Collapse, Nearly 50% Below 1973
April 16, 2012
John Williams, of Shadowstats, has warned that real earnings continue to literally collapse. Also note that the above graph illustrates consumer sentiment still remains below the 2003 market crash levels. Williams’ graphs are excellent depictions of what a collapsed economy truly looks like. They also show why the middle class in the Western world continues to be destroyed. Williams also shocked KWN with his graph showing real earnings tumbling, now nearly 50% below 1973. Here is what Williams had to say: “The latest consumer earnings and credit numbers show ongoing structural deterioration in consumer liquidity. With lack of positive, real (inflation-adjusted) growth in income, there can be no sustainable growth in real personal consumption (71% of GDP).”
John Williams continues:
“Temporary consumption gains could be fueled by debt expansion, but that option also is not available to most consumers. With limited prospects for income growth and debt expansion in the near future, broad economic activity remains likely to bottom-bounce for the foreseeable future, while healthy, sustainable gains in real retail sales remain improbable.