The New York Times today gives us some of the latest data on the essential recovery trend: a recovery of stock market values, stagnant employment, declining median incomes. Corporate profit rates are at record highs, while personal income shares are considerably down. This is the Obama recovery:
This is unlikely to change with the sequestration. As the NYTimes goes on to say:
“But although experts estimate that sequestration could cost the country about 700,000 jobs, Wall Street does not expect the cuts to substantially reduce corporate profits — or seriously threaten the recent rally in the stock markets.
“It’s minimal,” said Savita Subramanian, head of United States equity and quantitative strategy at Bank of America Merrill Lynch. Over all, the sequester could reduce earnings at the biggest companies by just over 1 percent, she said, adding, “the market wants more austerity.”