Why the Economy Is Better Than You Think

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The individual VS the State

It's funny to see so many GOVERNMENT WORSHIPING STATE-ists here posting about how bad the "republican" economy is... The Democrats have controlled congress for 2 years and have done NOTHING but spend money like alcoholics drinking at an open bar.

Government is the PROBLEM, not the solution. The Repubs were not any better, mind you. They spent the cash flow created by the tax cuts almost like they were Democrats!

You want CHANGE? You want a better economy? Here is my 5 step plan:

1 - Vote in the Fair TAX. This one change will teach people who really pays taxes. ALL TAXES are borne by the consumer. Corporations do not pay taxes, they collect them from their customers and pass them through.

2 - DRILL THE OIL WE HAVE - NOW. And build more refining capacity in the USA

3 - Build nuclear reactors for power. Lots of them - if the French can do it without blowing stuff up, surely we can.

4 - Continue to explore and research alternative energy sources. BIOMASS is not it. You can't EAT the corn you're turning into ethanol, and ethanol is not as energy efficient as OIL... Ethanol = higher cost for fuel AND food. That's a double bad

5 - VOTE LIBERTARIAN. Reduce government regulations on people and the things they do. As long as it does not infringe on MY right to life, liberty, and property, I don't care what you do to your self.

John of GA @ Jun 10, 2008 11:29:19 AM

Check your Constitution knowledge

I enjoy seeing/hearing liberals try to blame the economic problems we have on President Bush. They obviously have NO understanding of the Constitution at all- probably not their fault, since government schools don't really teach it anymore, and there are more pressing concerns to worry about (like who will get voted off next on American Idol). The President CANNOT pass economic legislation- only Congress can pass any sort of legislation. We have a Congress that is being run by big-government-loving liberals who demonize anybody who is productive (ie: those evil "rich" people who don't pay their "fair share," even though they pay the majority of taxes and are responsible for providing jobs to the rest of us) and expand entitlement programs to buy votes to ensure they will stay in power forever. Look at our housing problems and our medical/insurance problems in this country and you will see one big precipitating factor- government intervention. whenever government gets more involved and increases regulation two things happen: costs go up and quality goes down. If there wasn't more pressure on lenders to expand loans to people that wouldn't otherwise qualify (people with poor credit), we wouldn't have the problem we have right now. The problems we have right now have nothing to do with the President- they rest solely on Congress (look at how gas proces have risen almost 65% under this Congress- the President has NOTHING to do with factors that effect gas prices; he doesn't have the Constitutional authority).

By the way: could any big-government-loving liberal please give me one example of ANY government program that has outperformed a private sector alternative (ie: social security vs. private retirement accounst, private vs public education, etc.)? Please name me just ONE?

Tom of FL @ Jun 10, 2008 10:45:03 AM

Bad news sells and elects Democrats

If things were going great, the Dems wouldn't have a chance this November. The press knows this. You will not see a positive article from the major media anytime from now till the elections. There is an agenda. Socialism is behind it. Americans don't need government to solve our problems. We need government to get out of the way.

Shawn of MO @ Jun 10, 2008 10:25:41 AM

Check your economics knowledge

It's amazing how many people posting here as "knowledable" "experts" are under the mistaken impression that the "service industry" is comprised of "Walmart greeters" and restaurant servers. Check your knowledge. The service industry that we are exporting is made up of high paying jobs (engineering, consulting, etc).

You know what, never mind, if you pay too much attention, your head might explode.

Terrance of VA @ Jun 10, 2008 10:15:08 AM

Funny

Something for nothing is a Democrat ideology. A conservative does well for themselves, like Genvieve from Alabama, and all we hear from folks like 'fatesrider' is PMS; poor-me-syndrome tripe.

Keep doing what you're doing, whether it be good or bad , and you're likely to get the same results.

Work hard and achieve, or whine, complain and point fingers. Your choice, your chosen outcome.

Mark of VA @ Jun 10, 2008 09:38:00 AM

"Building boom..."

One thing that struck me in an interview following the crane colapse in New York recently...the official being interviewed said that these things will happen because every available crane was being pressed into service inthe "building boom in New York." I think the economy is doing just fine if the doom and gloomers will put their political agendas aside to tell us the truth.

I remember when 5% unemployment was considered full employment and numbers put up recently were unheard of.

Craig of VA @ Jun 10, 2008 08:56:19 AM

You guys are great...

The deregulation of the past 25 years have created excess in many areas. Bottom line is if you haven't had the discipline to keep your own house in order, the flush you are hearing will take you with the other incompetent, unproductive remnant down the toilet. Our system pays for your stupidity through bankruptcy courts, welfare and other stopgap measures. Stop complaining, teach your children to get a functional degree and have a great work ethic. They will be surprised at how lucky they are as opposed to how unlucky you are. Maybe they will have the capacity to take on the burden of taking care of you in your old age in case your so called broken government can't. Ask an imigrant how lucky you are.

Larry of TX @ Jun 10, 2008 05:40:12 AM

Tell you what, Mr. Pethokoukis, you come on down to the low-income side of town, lose your connections and networks and capital and bank accounts and credit cards and live with the common folk for a while. THEN tell me the economy isn't as bad as I think.

The trouble with conservatives is they think as long as things are going well for them, it's going well for everyone else and if it isn't, it's their fault.

Go peddle your economic propaganda to Fox.

Fatesrider of CA @ Jun 10, 2008 04:17:32 AM

For all those who keep saying it is so bad for the wage earner, truly ask yourself... how much did you put back for a rainy day when things were going well? Most have overspent and far surpassed their incomes (purchasing homes way beyond necessary and running up credit card debt), and now that the economy is not booming you can't make it?

I am considered middle class ( I earn half the salary I could earn if I worked in the private sector in exchange for healthcare and a pension plan provided by my employer), yet I have enough put back to cover my expenditures for at least a year. My child attends a private school (at my expense) and I have enough to cover 2 years of college expenses and still trying to save. I am a single parent with no financial support from an ex nor the state. I have accepted outside work and moonlighted in order to pay my bills because I was taught to be self-reliant.

Yet, I do not spend $300 for a handbag, I drive an 18 year old car, I do not take lavish vacations, I don't own the latest cell phone nor the plasma tele... (that is on my wish list).

I have no sympathy for anyone who says they can't make it. And I surely won't vote for anyone who insists on using my tax dollars to create, expand, double or triple more social welfare programs. If I could and still am making it, all of you can.

Genevieve of AL @ Jun 10, 2008 00:51:54 AM

You decide, is the economy better or worse off than most think?

James Pethokoukis reason the economy is better than most think:

1) Fewer than 8 percent of private-sector workers are covered by unions. That's way down from the 1970s and means that the transfer mechanism of higher food and energy inflation into cost-of-living wage adjustments—collective bargaining—has been severed.

My reason the economy is worse than most think:

The vast majority of Americans are getting little if no raise when health care, education, food, and energy costs are going up, in some case, like with healthcare, at double digit rates. Many companies no longer offer health care or pension benefits for employees.

James Pethokoukis reason:

2) A more service-oriented U.S. economy is far more resilient to energy shocks than it was in the 1970s. Tech helps, too, allowing folks to work at home or videoconference instead of flying to a meeting.

My reason the economy is worse than most think:

A good economy will grow at 4%, our economy is growing at less than 1%. During the 90s we were adding consistently, 200,000 jobs per month. For the last 3 years we have had a hard time adding 100,000 jobs per month, and in the last 5 months, we have lost 300,000 jobs.

James Pethokoukis reason:

3) Not only does the rise of global capitalism and trade help keep costs here low but provides a source of growth, through exports, for the currently anemic U.S. economy. Yet according to Gross, we should be bummed out by Rising Asia.

My reason the economy is worse than most think:

Import prices are rising 15% annually, which means all those cheap goods made by China won't be cheap for too much longer. The US dollar is at an ALL TIME LOW, before the last year, the all time low was about 78, the dollar index is currently 73. Trade deficits, Budget deficits, consumer debt is at all time highs. The vast majority of Americans have zero net worth, half of the 50 year olds in America have saved nothing for their retirements. Americans equity in their houses has dropped to pre World War II levels, less than 50%.

James Pethokoukis reason:

4) Although beset by an oil spike and a housing plunge, the core U.S. economy is in far better shape than it was in the 1970s. Productivity, the key measure of an economy's strength, consistently grew at less than 2 percent in the 1970s and stayed weak until the tax cuts, deregulation, inflation fighting, and corporate restructuring of the 1980s blossomed into the tech and productivity boom on the 1990s and beyond. Productivity has averaged about 2 ½ percent since 1995 and is now running closer to 3 percent.

My reason the economy is worse than most think:

The housing market is the worst since the Great Depression when looking at price declines and foreclosures, and we are not at the bottom YET. There are still huge banking problems. Oil is $30 higher than the inflation adjusted high from the prior 40 years. Furthermore, the S&P 500 is about 200 points lower than it was in March of 2000.

R. Strozinski of @ Jun 10, 2008 00:34:21 AM

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Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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