From the Author
Elections are a numbers game and the evidence really came out in November 2012 when Obama and Romney appealed to voters in the swing states of Florida, Ohio, Virginia, North Carolina and Wisconsin, all with double digit electoral votes. Both candidates and their Veeps criss-crossed multiple times in the air and landed in the heart of these targeted states to woo voters.
In the end, Obama won with a large election turn-out from the minorities and the women vote. Romney could never get the independent voter to lean to the right. I believe the improvement in the Job Outlook and record Corporation Profits came at the right time for Obama's win. Unfortunately, ObamaCare almost cost him the election and the US continues in a period of uncertainty for an Aging population ready to bankrupt Social Security, Medicare and Medicaid programs. Congress must make some gut-wrenching decisions over the next 4-years to get the US out of this Debt Crisis.
My philosophy is to tell it like it is . . . the hard facts and present them to you in simple, easy to understand terms. My hobby is to analyze the components of Gross Domestic Product (GDP), which includes Consumer Spending, Government Spending, Business Investment, and Exports minus Imports. For those who do not study macroeconomic theory, the formula is GDP = C + G + I + (E - I). GDP growth will result if consumers spend more and corporations invest more in their businesses. Two quarters of negative GDP Growth constitutes a recessionary economy.
When the 2007 financial collapse of the residential real estate market caused The Great Recession crippling the Financial Services, Manufacturing and Construction industries, most of Middle Class America lost 30-40% of their wealth and millions lost their jobs. This had a compounding effect on GDP Growth . . . Consumers stopped spending and Business stopped investing, both of which account for 80% of GDP. The Feds had no choice but to reduce interest rates, infuse cash into the banking system and bail-out some big companies to stop the fall in order to prop up the economy. If these actions were not taken, the US would have surely would have fallen into its 2nd Depression in 80 years.
The US Economy Exposed series of books will take a look at each major component of GDP and break down the factors that drive economic growth. My objective is to put the economy in perspective for people and business alike to make the right choices in the short-term future. We all need to get back to where we were before the financial collapse for our future prosperity, as well as leaving our kids with something to fall back on. It is a long and winding road to economic recovery. For some of us, that may not be possible, but I will try my best to educate those who want to improve their current financial situation.