Recent statistics on housing prices and construction make it clear that the booming market of the past few years has ended. As of July, prices of previously owned homes rose at their slowest pace in 11 years, and real housing prices--that is, after inflation is taken into account--have declined. New housing starts were down 13.3 percent over a year earlier.
This is the new economic reality in the U.S.--rising inequality even in boom times, and setbacks for workers during recessions, while both main political parties collaborate to further the employers’ agenda.
2006-09-07 12:49:38 · 15 answers · asked by Anonymous in Politics & Government ➔ Politics
Profits account for 12.2 percent of GDP--the highest level in 40 years. Meanwhile, wages and salaries have declined sharply as a percentage of GDP--down to just 45 percent today, from 50 percent in 2001 and a high of 53.6 percent in 1970.
Real wages have fallen 2 percent since 2001. As the New York Times observed, “The current expansion has a chance to become the first sustained period of economic growth since World War II that fails to offer a prolonged increase in real wages for most workers.”
2006-09-07 13:05:40 · update #1
For the past few years the housing market was experiencing unsustainable growth (something like the dot-com boom of the Clinton years). Sooner or later every market has to return to face reality and it appears this is what is happening to the housing market.
Since the housing market constitutes such a large share of the economy then you would expect that it would have a ripple effect throughout the entire market economy. This means we should expect a slowing of the economy. The Fed appears ready to start reducing interest rates should the slowdown come up too abruptly. The goal right now if for a soft-landing.
Should inflation, and income remain in check then we wouldn't expect a recession. However, if inflation should rise dramatically then we should expect a recession. Right now its too early to tell.
Right now I betting on a soft-landing. Inflation hasn't been too strong and corporate growth is still moderate. I'm expecting the price of petroleum to come down some and that will help.
2006-09-07 12:59:56 · answer #1 · answered by Dr. D 7 · 3⤊ 0⤋
I don't think so. Of course, what goes up must come down. Economics 101.
But with gas prices coming down, low unemployment figures, I think we will be alright.
Real estate is a big concern, you are right. But I don't see a big dropoff. Hope I am right.
Money talks and BS walks, we know that. Thats why the gvt keeps the Mexican border open, to keep the cheapo labor for their big biz friends. There are just as many rich Democrats as well, as you realize.
I want the border closed and the Fair Tax Plan implemented. That will revolutionalize our tax system and help all people and business as well.
Check out www.fairtax.org
2006-09-07 12:55:20 · answer #2 · answered by TG Special 5 · 2⤊ 1⤋
YES. US is definitely headed into a major recession. In 2007 Bernanke will have to raise rates to keep borrowing Dollars from the fast growing economies of the World like China, Middle East and India.
It is Bush's fault for invading Iraq and thus depleting our reserves while enriching the Oil industry home and foreign.
Also who is going to pay for the $400 Billion spent on the War in Iraq . We could easily have made Sad am surrender.
We should talk to Iran and maybe do a deal for cheap oil instead of attacking them and enriching our defense and oil industries. Of course , they would love to attack Iran. This way a lot of people get to eat at the poor taxpayer's expense.
2006-09-07 12:58:01 · answer #3 · answered by LODAR MANI KADOOH 1 · 2⤊ 1⤋
If you keep hyperventilating based on what the whining liberals say, probably. How do you explain better job growth than predicted, lower unemployment, and oil/gas prices dropping like a rock?
2006-09-07 12:53:50 · answer #4 · answered by Anonymous · 2⤊ 1⤋
I think so. . .and if China yanks it's cash from our over-inflated housing market. . .then we're in for a depression. Personally, I can't understand how the cost of housing in many parts of this nation almost approaches the cost for housing in Manhattan. Million dollar + homes in areas of urban sprawl--why is that??
2006-09-07 12:57:48 · answer #5 · answered by kobacker59 6 · 1⤊ 1⤋
A lot will come out after the 06 Midterms
2006-09-07 12:51:43 · answer #6 · answered by Anonymous · 1⤊ 1⤋
If you can talk about the price of gas going down with a straight face, you're must be pulling my pud. First you tell me Boosh has nothing to do with the increase in gas price, but you will soon be telling me it's him who's responsible for the drop. Or you're going to tell me it's a coincidence the price of gas is going down just before the mid-term elections.
2006-09-07 13:04:41 · answer #7 · answered by Matrix 3 · 2⤊ 2⤋
Recent economic news would suggest that we are headed for a more sustainable growth number which is good, not a recession.
2006-09-07 12:52:30 · answer #8 · answered by Zen 4 · 2⤊ 2⤋
Don't get your hopes up.
Recessions are inevitable in a market economy, but most indicators are looking up right now.
2006-09-07 13:00:43 · answer #9 · answered by Will 6 · 1⤊ 1⤋
But the employment rate is at it's highest point...interesting.
2006-09-07 12:52:37 · answer #10 · answered by tjjone 5 · 2⤊ 1⤋