I stumbled across this chart at another blog, which was fairly interesting so here is the link http://greginsd.wordpress.com/. So I looked over the chart and was reminded how I told someone recently that the year 2000 might have been the last year we got real GDP growth without some sort of help from the government. Think about it, in 2001 we had a mild recession followed by 9/11. Because of 9/11 the fed lowered rates to almost zero,
and they remained low for several years. This was complimented by massive deficit spending from then until now. What is scary about that though is when you look at the chart below you see we probably had the worst decade for economic growth since the great depression. So what does all of this tell us? My theory is that American economy reached a tipping point in 2000 because it was that year that saw congress normalize trade relations with China. This is supported by the 2nd chart which clearly shows a rapid loss of manufacturing jobs after 2000.
We had been bleeding good paying manufacturing jobs for decades but it only accelerated since that time to the point now that you see even with the Bush tax cuts, deficit spending, rock bottom rates by the FED we still finished the decade as worst on record since the Great Depression. Maybe we finally gave one to many jobs away. What if we are living in what will soon be described as the “new normal”?