Wonkbook: If Austerity is So Bad, Why is the Economy Doing So Well?
May 29, 2013
Here are some numbers that make you go “wow.” The S&P 500 has risen more than 25 percent over the last year. It’s risen more than 100 percent since President Obama was inaugurated.
Median wages, as you might have noticed, have not seen the same stunning recovery.
But wages might pick up soon. After all, most everything else is. Housing prices are rising faster than at any time since 2007. Autos are doing great. Consumer confidence just hit a five-year high. These aren’t just the kinds of numbers that foretell recovery. They’re the kinds of numbers that lead to recovery. A rising stock market doesn’t necessarily mean more jobs anytime soon. Rising housing prices and car sales almost certainly do.