Look...voters vote THEIR pocket books, and when the percentage of the population working is shrinking and wages (even before adjustments for inflation) are shrinking...it doesn't matter if Unemployment Rate drops to 2.0%, the voters aren't going to drink the Kool-Aid.
And an economy growing at 2% GDP with NEGATIVE real wage growth will soon become an economy with NEGATIVE GDP growth - a recession. And that new recession is going to be obvious in 2012Q1 (or 2012Q2, at the very latest), right in time to engineer a landslide against Obama. In fact, as I pointed out last month, half the GDP growth of Q3 was due to increased spending on medical services and electricity (due to the heat wave).
The negative wage growth (even before inflation), is showing up in both the GDP reports and the employment reports....it's undeniable.
Not to mention, consumers are continuing to pay down debt. So with shrinking wages and no new debt spending, where is continued growth going to come from?
This. Politicians can delude themselves into thinking the public is completely stupid, but they are not when it comes to market activities. Most people do not suffer from monetary illusions.
