Monday, October 7, 2013

Debt vs. Wages

Click to enlarge.

If the prosperity of the 1980s and 1990s taught us one thing, it is that the key to long-term prosperity is simple. We need to increase total debt relative to wages at a rate not less than 2.7% per year but not more than 2.9% per year. Sustainability above all else!

So let's put our thinking caps on and decide how we're going to keep the prosperity trend alive. Will it be more debt, less wages, or both? Illusions

He who chases rainbows may eventually catch tornadoes.

See Also:
Sarcasm Disclaimer

Source Data:
St. Louis Fed: Custom Chart

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