Economic news remains largely awesome

[classicman]

WASHINGTON -- Orders to U.S. factories rose unexpectedly in October although much of the gain reflected higher energy prices.

unexpectedly? humph!

[Elspode]

I keep waiting for those benefits to hit my house, but up until now, the increases in food, energy, interest rates on my properties, automotive repairs, and everything else that comprises day to day living, combined with the downturn in the residential construction industry which makes it so my employer is still looking to cut jobs, refusing to give a decent holiday bonus, and probably either less than cost of living or no raise at all...

...none of this seems all that awesome.

[tw]

Originally Posted by Elspode

I keep waiting for those benefits to hit my house, but up until now, the increases in food, energy, interest rates on my properties, automotive repairs, and everything else that comprises day to day living, combined with the downturn in the residential construction industry...

Add to that report another fact. When adjusted for inflation, the average American income rose $7000 during Clinton's presidency and has dropped $1000 during George Jr's. This boom has gone mostly to upper most income levels. If American productivity has increased 6+% annually, then where is that 6+% annual increase in all American paychecks on top of the normal wage increases?

The question remains whether another industry can pickup where the housing industry is faltering. For example, word from the Silicon Valley over the past four years is the massive influx in finance people (MBAs) has significantly diminished. That is an indication that the computer, networking, and software industry (add telecom to the mix) is ready to pick up the load. If true, then a recession can be averted.

Other industries such as big pharma has a significant reduction of innovations in their pipeline while many major profit drugs lose their patent protection. Big pharma is not poised to avert a recession.

The finance industry really needs a major shakeout.

Domestic automotive industry has no significant product - just more talk.

Aerospace (ie Boeing) appears to have gotten their act together. But will their customers be able to maintain their purchases?

What other industries can help avert a recession? What other industries have significant innovation? Otherwise we have two choices. Increased inflation to maintain jobs, or recession fix so many industries and to avert inflation.

Costs for necessary goods that are not included in reported inflation numbers have increased on the order of 20%. That 6+% return on productivity - where does it appear in the average joe's income?