DEAN BAKER — The Real Story of the Housing Crash: The Recession Politicians Don’t Want to Talk About

The economy is certain to occupy center stage in the presidential race this fall. Unfortunately neither Governor Romney nor President Obama are likely to give us an accurate account of the economic problems we are now facing.
Romney’s efforts seem intended to convince the public that President Obama has turned the country into the Soviet Union, with government bureaucrats shoving aside business leaders to take the commanding role in the economy. He will have lots of money to make this case, which he will need since it is so far from reality.
Corporate profits are at their highest share as a percentage of the economy in almost 50 years. The share of profits being paid in taxes is near its post-World War II low. The government’s share of the economy has actually shrunk in the Obama years, as has government employment. Perhaps Romney can convince the public that the private sector is being crushed by burdensome regulation and taxes, but that has nothing to do with reality.

Read more.. http://www.counterpunch.org/2012/06/20/the-real-story-of-the-housing-crash/

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