Lagging Incomes Signal U.S. Economy Weaker Than GDP Suggests By Carlos Torres and Alex Tanzi "Aug. 28 (Bloomberg) -- The meager gains in earnings over the last year signal the U.S. economy is in much deeper trouble than the growth estimates indicate, economists said... The income side of the economy, with profits down for four straight quarters and employment falling, looks like a recession,'' said John Ryding, chief economist at RDQ Economics in New York." http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIWiIsk9fzl8 This is exactly what I have been describing all week regarding the "illusion of prosperity". We are told GDP increases, yet wages never keep up with economic growth. That means the growth is in fact a bubble or pumped up on economic stimuli. In a truly healthy growing economy, real wages always incease in proportion to GDP. Think about it...over 65% of all economic activity is generated by consumer spending. So if real wages aren't increasing at a rate on par or close to GDP, how can wages and consumer spending continue to drive growth? Answer...they can't. In fact, this means real wages are declining and prices are increasing. Not good for long-term sustainable growth.