Economists Turn to Magic 8-Ball for Cause of Malaise (Boston.com)
It seems economists in the United States may be consulting their own ‚??Magic 8-Ball‚?Ě to figure out why the American economy isn‚??t stronger. You may remember the Magic 8-Ball from your childhood, featuring an oversized billiard ball with a window in it. That window contained a die with incredibly vague answers to potential questions: ‚??Chances are good‚?Ě is an example of one answer. Well, when economists were asked the question of why the U.S. economy isn‚??t doing any better, their 8-Ball told them: ‚??blame the U.S. income gap.‚?Ě Sure, stocks are still chugging along, but economists claim that to the rich go the market spoils, leaving middle-class America — and low-income America — grasping at straws. Because these affluent homes spend a lower percentage of their funds than low-income and middle-class people, the American economy isn‚??t benefiting as much as it should. A possible solution is to ‚??spend more‚?Ě money. But the situation leaves investors unsure how to read these economic tea leaves and partly explains the market‚??s recent retreat.