Following our own script, we've weakened America

[Gunit Hussein Sangh]

If al-Qaida had planted a sleeper agent whose job was to gain a position of influence and undermine America from within, he scarcely could have done more damage than Americans have done to ourselves.

The meltdown in the credit markets, a sagging economy, inflation-ravaged take-home pay and, worst of all, a bleak outlook for the years ahead did not materialize out of the blue. They are the consequences of deliberate policy choices.

Those consequences were entirely foreseeable, but Americans and their government simply chose not to heed the warnings.

So America grows weaker. It is as if the country were following a script for decline imposed by our worst enemy. If the terrorist manual contained a five-step scheme for undermining America, it might go something like this:

1. Run up the national debt to $9.4 trillion or so, with no end in sight. Incur billions in new debt every year so that you can reduce the taxes of the wealthiest citizens. Become a debtor nation, in hock to your biggest rival, the Chinese.

2. Make it an article of faith that Wall Street can do no wrong. Free banks and financiers from regulation, so that unbridled greed can take over. Fortunes can be made originating bad loans, then concocting exotic new securities to pass the bad paper off on clueless investors.

3. Arrange the tax code to fall heavily on labor but lightly on capital. Be hostile to labor unions, export jobs to low-wage countries and otherwise rig the system to hold down wages and reward managers more than workers. This will cause a bigger gap between rich and poor than at any time since the eve of the Great Depression.

4. Don't bother making expenditures that might strengthen the economy, such as improvements in education and infrastructure. Don't instill any sense of urgency about weaning the country from fossil fuels. Remain hostage to the oil exporters as long as possible.

5. Allow yourself to be duped into invading a country that posed no threat to you. Let it become a bottomless pit of blood and squandered national treasure. And, oh yes, refuse to pay for even part of the war. Just add the whole cost to the already staggering national debt. See No. 1 above.

http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20080323/OPINION01/803230312/1166

heckuvajob georgie

[Peter1469]

another view of the economy

http://www.realclearpolitics.com/articles/2008/03/hold_the_hysteria.html

Regarding the economy, it's hard not to notice this stark contrast: The "real economy" of spending, production and jobs -- though weakening -- is hardly in a state of collapse; but much of today's semi-hysterical commentary suggests that it is. Financial markets for stocks and bonds are described as being "in turmoil." People talk about a recession as if it were the second coming of Genghis Khan. Some whisper the dreaded word "depression." Meanwhile, Americans are expected to buy about 15 million vehicles in 2008; though down from 16.5 million in 2006, that's still a lot.

 

***

Some causes of the present hysteria are familiar: media hype; political finger-pointing -- always given to exaggeration; and whining from Wall Street types. But there's also another large cause: disagreement over whether the economy is highly unstable or whether business cycles are mostly self-correcting.

 

[SDML]

"We have met the enemy, and the enemy is us." (Walt Kelly)

[Peter1469]

This has a ring of truth to it in the stock market.  Much of the fluctuation is caused by unwarranted panic.  There are some people/businesses that watch this and make money off of it- watch for the panic, let the market fall, then buy.  Once the panic is over, usually in a day or two the market makes a big jump up and then you sell. 

[Gunit Hussein Sangh]

It's truly astonishing how conservatives continue to believe that things were so terrible in the 90's. The stock market tripled, 22 million jobs were created, income adjusted for inflation rose, debt was actually being paid off ... and that was all bad.

Now the stock market has barely risen 2000 points in 7 years, 8 million jobs created (probably less by the time dear leader leaves office), income adjust for inflation stagnant or decreasing, debt spiraling out  of control ... and conservatives call this strong fundamentals 

[Peter1469]

I don’t think that I have heard anyone say that the economy in the 1990s was bad.  Or I should say since the downturn of 91-92 ended.  I believe that fiscal policies (lower taxes) of the 80s created the business boom that increased the economy and lead to the largest peace-time expansion of the economy to that date. 

However, the flip side of that, the uncontrolled government spending is leading up to the problems that will start hitting us in 15-20 years.   

[Mr. Ed]

I think the problems are hitting us now.  So much of our economy is influenced by "consumer confidence" and "investor confidence" (bothe of which are very low right now) that bad economic policy (which is running rampant.  Like dandilions in the Spring) can be felt much sooner.

[they call me MR. GRUMPY god damn it!]

I think the problems are hitting us now.  So much of our economy is influenced by "consumer confidence" and "investor confidence" (bothe of which are very low right now) that bad economic policy (which is running rampant.  Like dandilions in the Spring) can be felt much sooner.

who let the poet out of the barn

[spunkloaf]

I can't buy food at twice the price it was ten years ago.  It used to cost me thirty bucks to fill my tank, now it's sixty five.

Shit rolls down hill.  Oil is killing our economy.

"Oh, who cares about the price of food and gas--PEOPLE ARE BUYING MORE CARS!!  Never mind that they're all borrowing money to do it and half of them will end up getting repo'd, just like in the housing market."

Ever noticed there's a crap load more repo liquidation commercials on tv?

"To all you rich folks: come out and snatch up the home of this single family who couldn't afford the payments on it.  We'll even sell it to you for a fraction of what we wanted THEM to pay for it."

Just keep blaming those lazy whiners and keep denying our economic problems, just because you're not getting the brunt of it.

I work hard for my independence, and now I can't even afford it on my own anymore.  So, here's one example.
I suppose you're gonna tell me I'm whining.  No, whining would be giving up and not looking for better income.  I'm doing the opposite.  So don't start there.

I won't sit here and believe that if I talk good about the economy it's gonna do better.  It starts with my bare hands, the same with everybody else.

[they call me MR. GRUMPY god damn it!]

spunk might you consider eating less and walking more??  there problem solved

[spunkloaf]

Well that's one way to take care of things.

[Mr. Dirlewanger]

Spunk, I understand the gas part but food? I spend between $50 and $60 a week on food. I am assuming you are also a single guy so what gives?

[spunkloaf]

Produce is way up, I don't even think about buying fruits anymore.
Milk...don't get me started.
Meat!
Now that corn, wheat, and oat prices are up--most everything else will begin to get more expensive, too.

Even the "value" brand cereal has doubled in price in the last fifteen years.

Food price is one of the biggest symptoms of this festering economy.

D-wang, where do you shop?  I go to Cub, what is your secret?

[Mr. Dirlewanger]

Produce is way up, I don't even think about buying fruits anymore.
Milk...don't get me started.
Meat!
Now that corn, wheat, and oat prices are up--most everything else will begin to get more expensive, too.

Even the "value" brand cereal has doubled in price in the last fifteen years.

Food price is one of the biggest symptoms of this festering economy.

D-wang, where do you shop?  I go to Cub, what is your secret?

Truthfully, I just don't see it. I buy a lot of produce. The only complaint I have had is that the price of broccoli is sometimes a little high. Granted, I eat a lot of pasta/vegetable dishes and make much use of garlic and onion.

[Vermouth]

I bought apples the other day, and the price per pound came out to over $1 per apple! And they were not fancypants organic apples either.