Anthony B. Sanders (who uses my WordPress blog theme, so you know he has style, class and good taste) of George Mason University explains:

First, the M1 Money Multiplier (white line). It was over 3.0 back during the Reagan Recovery in the 1980s, but it has been all downhill since then. It is currently below 1.0 at 0.721.

Second, the M2 Money Velocity (red dashed line). It peaked in 1997 during the Clinton Recovery and has been pretty much downhill ever since (with the exception of 2003-2006).

Third, labor force participation (green dotted line). It peaked in March 2000 and has been falling ever since (with the exception of 2004-2006).

Fourth, real median household income. It peaked once during 2000 and then again in Q4 2007. And then it has been all downhill from there. …

I suggest we try a different approach that allows real incomes to rise.