Is Joe Sixpack's Economy Deep Into A Recession?
By Steven Hansen:It comes as no surprise to me that many believe we are in a recession. Joe Sixpack's portion of the economy sucks (e.g. not good, for those who are uncertain what "sucks" means).The metric used to gauge economic growth by APP (Academics, Pundits and Politicos) is GDP (Gross Domestic Product). It includes elements which have no direct relationship to Joe. GDP is a metric to understand the economy of the 0.01%, or the country as a whole. Joe lives in a world of income, expenditure and net worth. If Joe sees growth in his world, then his economy is growing.Joe's world is contracting - literally. Instead of looking at aggregate growth, the way to view Joe's world is to look at per capita growth, and specifically at the money flows that involve Joe directly.The graph below shows April 2012 per capita disposable income 0f $37,711 (current dollars)Complete Story »