Home > US News > Central Bankers Fail to Understand Forces Holding Back the Economy; Ten Major Economic Headwinds | Mish
Central Bankers Fail to Understand Forces Holding Back the Economy; Ten Major Economic Headwinds | Mish
September 4, 2012
… Ten Major Headwinds:
- Boomers heading into retirement have insufficient savings
- Student debt holds back home-buying, marriage, and family formation
- Ability and willingness of individuals and businesses to take on more debt has shrunk dramatically. Attitudes towards lending, borrowing, and home ownership have changed.
- Bank bailouts at taxpayer expense left banks intact but did nothing for households deep in debt
- Tax policy encourages flight of jobs and capital
- Technology now serves to destroy more jobs than it creates.
- Untenable pension problems at the city, state, and federal level can no longer be put off.
- Public unions and collective bargaining are structural problems at the heart of the pension mess as well as the heart of numerous city bankruptcies.
- Artificially low interest rates weakens those on fixed income
- Commercial real estate bust on top of housing bust limits further job expansion. How many more Walmart, Pizza Huts, McDonalds, nail salons, Kohl’s stores, Office Depots, Home Depots do we need? Where?