United States Lost Output Clock
$4,597,559,883,655 and counting. Visit LostOutputClock.com for current amount.
Lost National Income since the Financial Crisis of 2008.
Blue line = Potential GDP (if capital and labor are fully employed with adequate demand)
Red line = Actual GDP
GDP = Government Spending + Private Spending + Exports – Imports
GDP & Labor Employment => Positive Correlation (Okun’s Law)
We have a modern epidemic of unemployed and underemployed workers in the United States.
Since the 2008 financial crisis, the labor market has reached a tipping point, and the middle class has received its final blow.
Every time there’s a business with machines or facilities idle due to low sales, or a worker unable to find a way to contribute, it’s money being lost and wasted in our economy.
This untapped production from unemployed workers and unused facilities will never come back.
You can’t go into a time machine and fix the misery caused over the years by unaddressed economic strife.
You can’t put together families torn apart by broken careers and home foreclosures.
The pain can’t be undone.
If you are unemployed, seeking work and unable to find adequate fulfillment, or you’re a business owner with sluggish sales and idle capital, it is not your fault.
Deregulatory policies and dismantling of public isntitutions under Ronald Reagan and Bill Clinton paved the way for a series of financial crises.
Bankers got drunk off cheap money from Fed chair Alan Greenspan, until they couldn’t handle the debt load and risk and collapsed.
And once it popped, they used tax payer money to bail out the large financial institutions, with trillions in guarantees, loans, and equity purchases.
All this in the backdrop of decades of working Americans being shafted by free trade agreements and destruction of collective bargaining.
The result was a credit market and economy in shambles, and a government unwilling to plug the aggregate demand hole adequately with New Deal style public expenditures.
But we can reverse the bad policy which led to the crisis and do something about the unnecessary future pain.
We need a large, $1.1 Trillion government stimulus jobs-directed spending program NOW.
For a detailed 20-page run-down of the nature of our current woes and the fix, click here.
This missed production/income, if spread evenly across all working Americans, amounts to lost accumulation of wealth per working American of:
The same issue is occurring in the UK right now.
Monetary sovereigns worldwide must Say No to Austerity.
Bernie Sanders is the most gutsy contrarian independent politician in modern American history, who has solutions.
Ralph Nader is the most successful activist in modern American history. He has helped solve problems in the past and has solutions.
Dean Baker is a progressive economist directing the CEPR, which produces mounds of data supporting big ideas.
Stephanie Kelton and the individuals at New Economic Perspectives are producing excellent research and facilitating discussions that involve solutions to the jobs crisis.
Warren Mosler deserves special recognition as an insider/practitioner who has been invaluable to the Modern Monetary Theory (MMT) movement.
INET — Institute of New Economic Thinking — is a think tank organizing new proposals for change in the field.
Noam Chomsky is the most moral intellectual in modern American history that puts a lot of uncomfortable truths in perspective.
*Check out my collection of political and economic essays:
Bitcoin Bubble Bound to Burst
United States Trade Deficit: The 800 Pound Gorilla
How much longer can the Austerians and their puppets go on with their failed policies and lies?
Relax! Bond Vigilantes Don’t Exist, and They Never Did Exist
United States National Debt and Money: Purpose, Context, and Mechanics
Why Republicans are Wrong When They Say Government Spending is the Problem
My Journey as a 9/11 Republican Turned Modern Progressive
Thoughts on the Minimum Wage: Evidence, Opposition, and Historical Context
Gun Control – The Quest for Common Ground
1) Estimated accumulated output gap between 2008-2013: $4 trillion (Federal Reserve paper here)
2) CBO-estimated $3 billion daily gap going forward from 2013. (see CEPR post here)
3) Per-worker data is the running Lost Output Clock figure divided by the Census Bureau’s Labor Force Figures here.