Let’s recap, there are 4 major structural areas or indicators in the US economy that all function like cogwheels each turning each other among other factors.
So the following 3 graphs are on the employment & production of the US economy. The first shows a sharp spike of unemployed folks. The second shows a moderate increase in production compared from last year at each month increments. And the last shows a cliff dive of sales or orders made on goods & services.
So there are less workers yet goods are being produce at an increase pace compare to last year but the goods are not being sold at a far less rate than year (actually double digit negative %) in comparison to last year.
Income in the Nation will cliff dive at the same rate (which did see the graph at the way bottom which came out this past Monday 2/2/09)
Sales will drop which is what we’re seeing in the third graph
Productivity will go down, even though the second graph shows an increase. That’s because its compare to last year which you can see 2007 was near 0% compare to 2006. So in the next 2 quarters will see the consequences of the above 3 indicators on this graph.