How is our economy 'bad' right now?

Question

Everyone is saying our economy is bad right now. But how is that/
The Dow is over 12,000 points (which is very good), gas prices are falling (also very good), and the unemployment rate is lower than what is was during Clinton's terms (which, again, is good). So tell me, how is all of this bad?

The Housing market has been said to burst, and it hasn't by now.

Gas prices are only up about 30-50 cents over 6 years. Thats less than a dime per year. They were also lower because Clinton went into the emergency supply that we keep.

The Dow is a VERY important stock market. It consists of the TOP 30 companies in America, and if they are doing bad, its not good.

Answer 1

I wish our economy was this bad all the time!

Wages - up!
Unemployment - low!
Inflation - Low
Stock Market - up!
Home ownership - up!
Taxes - down!
Tax Revenue - up!
Budget Deficit - down!

PS....To g: I'm comparing today's economy to that of a few years ago. By the way, the stock market started tanking in March 2000, long before Bush become president. Unemployment also started rising as he entered office, that very month. Both due to the dot.com bubble bursting. Are you going to blame that on Bush? Then of course we had the economic hit of 9/11. Also, historically 4.6% unemployment is very low, and beats much of Clinton's term. Just go to www.bls.gov and look up historical figures.

To CORiverRat - please look at census data that shows ALL income levels going up in 2005, and the poor going up in 2004, while the rich got poorer.

PPS....To g: I guess you didn't understand the concept of a "bubble" economy. The economy grew far faster than reasonable during Clinton, and then the bubble burst in late 2000. I'm not blaming Clinton for the bubble and the burst, merely setting the stage. Yes Clinton inherited a poor economy from Bush 41, and he left a tanking economy for Bush 43.

You want to give Clinton credit for the great economy of the late 90's. Fine. Tell me what policies he enacted to cause it? Fact is he was the beneficiary of a new industry starting (dot.com) that created lots of wealth and jobs. He did nothing to encourage it, or cause the bubble burst.

Bush instead gets hit with 9/11 instead of a brand new industry that creates new wealth and jobs. Thems the breaks. Just look at things honestly.

Answer 2

It is a weird time right now - the Dow is doing well, gas prices are falling, and unemployment is down, which is all good. However, people feel they have very little disposable income, there is significant fear of losing jobs, and the average raise can barely keep up with inflation. The gap between the top 1% earners and the rest is at an all time high and just keeps going - people feel their only purpose in life it to make the super-rich even richer. The thought of owning a first house, or moving to a better house, is non-existent for most people. There's not even a game plan, not even the possibility of raising enough cash. For the first time in US history the standard of living for this generation will be lower than that of our parents. Plus Americans feel billions of dollars are being pumped into Iraq for no purpose, that the world is increasingly unsafe (Iraq gets nowhere, Osama's still out there, NKorea has the bomb).

Bad is subjective - we're not in a depression, we don't have runaway inflation, we're not in a real war economy. Still, under previous administrations we should feel very optimistic, yet for the lower-upper class on down (including the middle and lower classes), there is a malaise, a feeling that regardless of how hard they work or try, things will never improve.

Answer 3

Home foreclosures are up. Gas prices are rising again where I live. My homeowners insurance took a forty percent jump this year. My electric bill more than doubled from last year. The unemployment rate doesn't take into account the people whose unemployment has run out. People with adjustable rate mortgages are paying more. My auto insurance has gone up. And the Dow going over 12,000 does me no good whatsoever. Our trade deficit is sky high, and the national debt is at record levels, and your personal share is almost $29,000.00 That's why people are saying our economy is in trouble. The Dow is not a stock market and further it does not consist of the 30 best companies.

Answer 4

The cost of medicine, food, shelter, etc are at or near all time highs. This makes it very difficult on a lot of people who are on fixed incomes.

The Dow being above 12,000 is great but it doesn't mean that all is well - only for investors.

Answer 5

Depends on where you sit. If you sit on the top (remember Bush's great line about the haves and the have mores being his base) it is great. CEO's salaries are at record levels. CEO stock bonuses are at record levels. But if you are a working man or woman you know that as a percentage of the GNP workers salaries are at the lowest level they have been since world war two. More and more people are losing benefits, health care, pensions. More and more people are having to work multiple jobs to make ends meet. Here in Colorado we are seeing record rates of foreclosures. Even bankrupcy is no longer there for many people who will never get out from under their health care debt, or the debt caused when their pensions were raided by the Nachios, Lays and Skillings. Is our economy bad, only if you have a job, or don't have a job.

Answer 6

certain, the american economic equipment is in undesirable structure as we talk. Will it worsen? certain. How a lot longer till it receives better effective? about 4-6 years. i will simplify the mission as a lot conceivable: because of the housing bubble bursting, banks have better debt than income, which signifies that they are out of money. That no longer in hardship-free words places your man or woman banked money in probability, it signifies that the business corporation itself would no longer be alive a lot longer, and would initiate calling in on loans with the intention to get money. This kills client self belief, and small agencies (which contain 70% of yank employment) which elect economic corporation loans won't be able to get them; that's why many agencies are failing! extra to which, u.s. imports better than it exports, which signifies that the money we pay for overseas products (Korean automobiles, chinese language TVs, and so on.) is going distant places rather of staying contained in the U.S. On authentic of which, with the intention to pay for 2 distant places wars, the chinese language authorities has been procuring U.S. bonds, which signifies that China and different overseas powers extremely personal u.s. authorities as we talk. finally, those overseas powers will elect the u . s . to pay up! what's necessary is a withdrawal of yank protection stress from distant places commitments, and an entire reinvestment in u.s., in the technique the board: funding in practise, technologies, technology, city renewal, reforestation, and an entire rebuilding of infrastructure. in hardship-free words through recommiting to the american dream, and putting u.s. first can client self belief be restored. Platitudes and slogans gained't do the interest. that's, notwithstanding, no longer going to ensue in one day. If the example FDR set in the course of the finished melancholy is a few thing to bypass through, that's going to likely be 4 or 5 years till now we can see any lasting consequences.

Answer 7

ah... the unemployment lie... unemployment was at 4 percent when Bush entered the office.. .it's at 4.6 percent now... is that lower?

dow is only slightly higher now than when Bush entered office (it's previous high before about 3 weeks ago was about a week before Bush took office), so it's only a very small improvement over six years... that's a very slow rate of improvement...

and gas prices are still higher than when he started...

poor to no improvement on all three over 6 years...

and now the housing bubble seems to be busting... and did you see today's report:
"WASHINGTON (AP) — Manufacturing expanded at the slowest pace in more than three years in September, and construction spending declined as housing continued to suffer through its longest stretch of weakness since 1995." according to the AP?

Kevin M: did you look at the unemployment figures... you blame them on clinton when the elder bush handed him a 7 percent rate?
who would you rather have? a man that went from 7 to 4 percent unemployment... or one that went from 4 to 4.6?...

let's look at the stocks... Bush went in in Jan. 2001... right... the high that month was 11,224.41... that doesn't sound like much of a downturn to me... it was 12,031 today ... that's about a 800 point change...

http://finance.yahoo.com/q/hp?s=%5EDJI&a=09&b=1&c=1999&d=10&e=2&f=2006&g=m&z=66&y=66

now when Clinton came into office the dow's high for Jan. 1993 was 3338.12...and it went to 11,224, as I previously stated right at the end of his term...that's about an 8,000 point chance

http://finance.yahoo.com/q/hp?s=%5EDJI&a=09&b=1&c=1992&d=10&e=2&f=1995&g=m

800 point change... 8,000 point change?

Answer 8

What is generally meant is, although things aren't as bad as they were during the depression days, everything could be better. I don't think you'll ever see a time when someone thinks everything is perfect---there's no such world...sorry Candid (from world literature).

Answer 9

It's amazing how repubs spin. Income is flat, prices are up, home sales and values are dropping, the poor are getting poorer, personal debt is setting records, etc...

The dow is the most meaningless measure of the market. The S&P 500 is far better. Looked at it lately?

Answer 10

Regardless if the economy is wonderful, it is always "bad" while we have a Republican President,

If it is terrible, uninformed people claim that it is "good" while we have Democrat President.

Regardless of the facts,


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