FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 15 June 2016

The Daily Data Dive: Auto Sales Chart Crystalizes 40-Year Decline Of US Middle Class

by Lee Adler, Wall Street Examiner

Wall Street pundits showed some consternation about the year to year decline in May auto sales last week but they missed the big picture.

In the Tale of Two Economies, while the owners of stocks and bonds get richer and make the top lines of many economic data series look ok, Americans by and large are doing persistently worse.

As I wrote in an article with the same title as this at David Stockman's Contra Corner:

Stockholders, particularly the leveraged speculators with access to the never ending stream of free central bank printed money, party on while stocks hover at new highs. Oceans of central bank printed cash and free financing for speculative schemes have stopped every stock market selloff and driven every rally higher in spite of weakening fundamentals. As stock and bond prices have surged, the benefits have accrued to only a few. More and more Americans find the going getting tougher, with increasing percentages of people falling through the economic cracks. This trend isn't new. It has been in force for 40 years.

As the following graphs show, auto sales have been slowly increasing over the last 40 years, with major dips for recessions. But 40 years ago the U.S. population was 218 million, 105 million (33%) less than today. While the U.S. population has increased by 44% since 1978, 37 years later in 2015 auto sales were up only 7%. See the upper (blue) plot below. When the sales data is divided by population the sales on a per capita basis has declined by 35% over the same time period (1978-2015).

Click for larger image at The Wall Street Examiner.

From Contra Corner:

For Americans, the purchase of a new car has long been a symbol of success and economic well being. There is no better representation of the decline of US living standards than that this symbol is increasingly out of reach for an ever growing segment of the American people.

The world's central banks have built their policies of money printing and zero or negative interest rates on the idea these policies would drive securities prices higher and that the rising tide of securities prices would lift all boats. The "wealth" the central banks created by pumping up that ocean of liquidity has certainly resulted in bigger and bigger yachts. But that rising liquidity hasn't lifted the small boats. It has swamped them. Central bank policies have written A Tale of Two Economies, a long running sad story for a growing number of Americans.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Opinion Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Opinion


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
A Short Note on a Connection Between Marginalist Economics and Folk Medicine
Run A High Pressure Economy? Janet Yellen Does Not Understand the Problem
News Blog
Ten Ways To Live A Happier Life According To Animals
21 October 2016: ECRI's WLI Growth Index Again Declines
Advance Estimate 3Q2016 GDP Quarter-over-Quarter Growth at 2.9 Percent.
Rail Week Ending 22 October 2016 Better Than The Previous Week
What Happens After The Islamic State Loses Mosul
Infographic Of The Day: The History Of Women's Ice Hockey In Canada
Early Headlines: Asia Stocks Mixed, Huge Antarctic Marine Park, Can Trump Get To 270?, US Workers Gaining, UK Inflation, France GDP, India Savings Lag And More
Why Amazon Gives So Many Perks To Prime Members
Where Workplace Trust Is Strongest
How A Lack Of Sleep Affects Your Brain - And Personality
How Accurate Are Final US Election Polls
What We Read Today 27 October 2016
A Pony And His Beloved Teddy Bear Reunite After Being Apart For 3 Years
Investing Blog
Technical Thoughts: Looking For The Rebounds
Gold That Pays Dividends
Opinion Blog
Global Debt Investors: The Silence Of The Lambs
A Hard Brexit And Reduced Migration Won't Benefit UK Workers
Precious Metals Blog
Inflation Surging As Platinum Signals Stock Market Decline
Live Markets
28Oct2016 Pre-Market Commentary: US GDP Rises To 2.9 Percent, Gold Falls Sharply, Markets Expected To Initially Open Fractionally Higher
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved