It seems economic confidence among the peasants has taken a cliff dive and is at levels seen during the 2008-2009 recession. The blame is being put on the terrible government shutdown and the two week paid vacation awarded to non-essential government drones. Did anyone with two brain cells actually think the corrupt boneheads in Washington DC were going to default on our $17 trillion of debt? Does the average schmuck even know what default means? The clueless talking heads in the corporate MSM have attempted to scare the masses with warnings about an impending catastrophe if the debt ceiling wasn’t raised. If you had asked these boobs what exactly would produce the catastrophe, they would become indignant and flabbergasted at such an impertinent question. Then you would hear the sounds of crickets or the wind whistling through the vacant space between their ears.
Economic confidence among people living in the real world has been falling since the beginning of the year as taxes have gone up, Obamacare obliterates the finances of small businesses, the conversion from good full time jobs to shitty part time jobs continues, real wages keep declining, student loan debt skyrockets with young people destined for a life of servitude in their parents’ basement, and consumer spending at restaurants and retailers collapsing.
The vacuous bimbos on CNBC, CNN, and MSNBC are blathering about the averted crisis this morning. Addressing none of the unsustainable debt accumulation and pushing off another fake crisis until next February is seen as a great victory for Obama and his minions. The evil Tea Party almost succeeded in making someone address the $3.7 trillion of Federal government spending. Thank God we averted those hard decisions. The American people are now relieved and will surely resume spending money they don’t have on things they don’t need with a Wall Street bank credit card charging 19.9% interest. I understand Black Friday will start three weeks before Thanksgiving in order to get things jump started.
I know my confidence has been boosted by this historic compromise that will increase the National debt by $2.7 trillion per day versus the $2.5 trillion per day prior to the compromise, as the sequester spending slowdowns were eliminated. And now that Obamacare has been saved, I’m sure economic confidence will soar, once someone can log into the system. I do know the confidence of the government drones has never been higher, as they just finished their two week paid vacation, and their unemployment claims will get paid at the same time. I’m sure these patriots will be refunding the unemployment payouts any day now.
So keep your chins up and be as confident as a government drone or a Goldman Sachs muppet slayer. Your government is open for business and a glorious future awaits.
For some perspective on the current government shutdown and threat of default, today’s chart plots the weekly Gallup Economic Confidence Index. As today’s chart illustrates, economic confidence was trending higher and making post-financial crisis highs as late as June 2013. Then the government stepped in. Since that peak, confidence dropped significantly only to accelerate beginning in late September as the government shutdown appeared imminent and a potential default approached. So even what amounts to a ‘partial’ government shutdown and a ‘mere’ threat of default has already had an impact on US economic confidence (other issues such as reduced GDP growth, furloughed workers, potential credit rating cuts, reduced global standing, etc. notwithstanding). Reduced economic confidence can encourage consumers to spend less which can in turn slow an already sluggish job market.