If the US economy is so great as Bush supporters claim...?

Question

Then why are we facing the strong possibility of a nation-wide meltdown involving the housing market and subprime mortgage lenders?

Answer 1

It depends what part of the economy you look at. Bush supporters have claimed a strong economy because businesses have actually been doing well, and our Economy has been growning 2-3% (about optimal for an economy of our size and age -- this has happened in part due to big business tax cuts at the beginning of his term). So in a way the Bush supporters are sort of right...

Of course, they aren't looking at wage levels, etc. and in those areas we aren't doing so well. For vast numbers of Americans their paychecks have been going down and down over the past few years. Not in a literal sense (the number on the check is the same), but with inflation going up 2-3% a year, people aren't getting raises, so they have been actually getting poorer. The richest haven't had this problem, their wages have actually been going up, so of course they aren't complaining!

The economy has a bunch of problems, but on a broad numbers basis they are right (and that's what they keep pushing hoping you won't look elsewhere).

Answer 2

The sub-prime mortgage thing really wasn't Bush's fault (or his administration's) Lenders relaxed their standards so much that they ended up funding a lot of questionable loans. It was bad judgement on their part. And we all saw this train-wreck coming...

The result is that if the economy starts to go south, the mortgage problems will make it worse.


The economy has been doing great for many years, but interestingly wages for most people have NOT. Productivity is way up, corporate profits are way up, executive compensation is way WAY up, but you and me aren't making much more. THAT'S the legacy of the Bush administration, with their tax "relief" for the rich, and business, along with the pro-business / anti-employee policies (union busting, etc.)

And to be fair, Bush didn't start this. I think you have to point at Reagan; when he fired every single Air Traffic Controller in the country because they went on strike, that brought an immediate change to this nation's workplace, which we're still feeling.

Answer 3

because the democrats would have you believe that things are bad. The stock market was at the highest it has ever been mortgages are doing what they are because people are getting themselves into mortgages that they don't understand like this adjustable rate mortgage they should have a fixed but don't have the credit needed to get them and settle for what they can and end up in default that is the problem

Answer 4

If Bush prevented these people from getting loans in the first place, he would have been blamed for preventing their American dream.

The more people that own homes, the more that lose them. Overall I think people are better off (economically)

Answer 5

nothing is as good as bush claims it is !