[giantrobot]

My paycheck has not increased in size relative to increase of prices of necessities. Every dollar going to necessities is a dollar that can't go to discretionary spending.

Lower discretionary spending for a long enough time means growth slows. The prices traders are willing to buy stocks is a function of a company's future growth prospects. Slowing growth rates makes for a recession.

Too many politicos define "strong economy" in terms of unemployment rates because they're simple scalar values. Full employment with high prices doesn't make for an environment where anyone can eke out margins.