Talk about hiding in plain sight. Here is possibly the most important graph ever about the flagging state of the US economy and the utter failure of Washington’s constant efforts during the last two decades to “stimulate” improved outcomes.
To wit, the US industrial production index—which measures the sum of manufacturing, energy, mining, and utility output—marched straight uphill at a 3.3% annual rate between 1954 and 2007. Yet since then it has essentially plateaued, rising by just 0.10% per annum during the past 17 years.
The Mystery of BankingMurray N. RothbardBest Price: $2.23Buy New $7.57(as of 07:55 UTC - Details)
That’s right. The growth rate of America’s industrial foundation has plunged by 97% since the pre-crisis peak in Q4 2007. And yet June’s industrial production index, which was up a small tad, gets headlined as a sign of economic strength. In fact, the longer-term chart below screams the very opposite.
After all, there is no logic that says an economy can remain healthy and prosperous that is increasingly based on educating a shrinking number of kids, feeding an expanding national waistline at fast food joints, and changing adult diapers among the soaring share of the population composed of octogenarians. At the end of the day, you actually have to make things in order for the population to pay for taking in each other’s laundry.
As it has happened, however, during the 48 months since June 2021 the industrial production index has been negative or flat nearly half the time on a month-over-month basis. For all practical purposes, the US industrial economy is just playing “mother may I”, advancing one step forward and the next step backwards month after month. And if that’s “strong” or even a sign of anything except decaying performance, we’d suggest the English language has lost all meaning.
