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EconoMeter: Are we better off this Election Day?

Roger Showley, U-T SAN DIEGO

Sunday, November 4, 2012

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Kelly Cunningham, National University System
Answer: NO

We are not economically better off by borrowing trillions of dollars to create an illusionary recovery that generated no real growth and only put us deeper into debt. Although the recession purportedly ended in 2009, real economic recovery has not materialized, while an “illusionary” recovery is fabricated by understating true inflation. Price deflators used by the Commerce Department to adjust for “real” economic production between 2008 and 2012 indicate only 1.5 percent inflation per year. As anyone putting gas in their car and shopping for groceries knows, prices have risen far more than this. More consistent measurements comparing same item price changes would show no statistical recovery of the economy. Compared to the price of gold, the value of the U.S. dollar has annually fallen 24 percent over the same period. This is why the "recovery" has largely failed to create jobs and “real” personal income continues to erode from 2008 levels.