I’ve been pretty gloomy on the economy for a while, but I agree with this quote:
“We’ve had a phenomenal run in asset classes across the board,” says Dan Greenhaus, chief economic strategist for Miller Tabak + Co., an institutional trading firm in New York. “If Obama was a Republican, we would hear a never-ending drumbeat of news stories about markets voting in favor of the President.”
But a major aspect of my economic mindset over the last couple of years is things aren’t really better on the ground at Main Street, so I also agree with this quote from Jon Chait:
I think the interesting question right now is not whether the economy is due for strong growth, but whether and when that growth will create rising living standards. The recovery from the 1991 recession took years before it began producing wage gains. The recovery from the 2001 recession basically never produced real wage gains — essentially all the gains went into corporate profits and gains for the very rich. Moreover, there’s very little consensus as to why that happened. So we have no idea to what extent growth and higher productivity will create conditions that people have any reason to recognize as real growth.