Low unemployment, low inflation, at the peak of the interest rate cycle - that's outstanding performance?

Question

Why all the gloom and doom?

I hear people talk about the "mess" - what mess???? Bush has made a mess of IRAQ but certainly not AMERICA.

I sometimes see bumper stickers that read "had enough? vote Democrat" - - - Enough of WHAT? Growth? Low unemployment? Rising incomes?

NO, I HAVE NOT HAD ENOUGH OF THAT!!!!

e-mail the "economy based on credit" they've been saying that for 30 years my friend. There is more credit and it is abused in certain pockets but the economic fundamentals are strong - - - - Forbes had a great article on this phenomenon on a worldwide basis a few weeks ago. The cart isn't pulling the horse this time - - it's not credit fueling the economy artificially, it's the economy growing naturally thus credit follows suit.

Right crabby, "headed into a recession" you guys have said that for a few years now, hasn't happened yet.

Just like "oh these tax revenue increases, that's just a temporary blip" - some four going on five year blip!

Answer 1

Economically I have never been able to figure out what mess people are talking about. Some folks get in over their heads on their mortgages and all of a sudden the sky is falling? Come on people should look around.........

Answer 2

Employment is one of the factors linked to inflation, but there are others as well. The size of the money supply is also a factor, which is basically determined by the interest rate set by the Federal Reserve. The level of productivity is another factor, which has a lot to do with the rate of implementing automation of the work environment. Disruptions in the production chain such at labor disputes, increasing transportation costs and so on. In the case of food, which is after all a fairly large chuck of the economy, the weather can have a huge influence on inflation. Government spending on non-productive activities such as war is a factor. I am sure there are more known factors and there is the very real possibility that not even very smart economists have it all figured out.

Answer 3

Under the pretty dress, the underwear has holes.
The mess, is that we have a stock market unrelated to the real or projected wealth of the company. The way we get those rosy figures is to drop the unemployed and no longer eligible. You also have to consider the fact that we have yet to see the tremendous influx of mortgage companies that went bankrupt. Low inflation is a joke, they removed food and energy costs from that equation a while ago, those have been on the increase, along with medical costs, and they far exceed the rate of inflation. But you can buy a luxury car for about the same. I buy a lot more food and electricity and gas and oil than I do luxury cars, but maybe that's just me.
The mess most people refer to though is the coming mess where we have to start paying for a war that's costing us ten billion a month. Why we can afford to pay for this war when we claim we can't afford to give our citizens health care when it would only cost one-twelfth of this per year is another story.
The bills for this war come due after he leaves office. Leaving the next president to in all probability be a one-termer.
So now you know, what looks good on the outside, has nothing to do with whats happening on the inside, but sooner or later, the outside wears thin and we are left with our asses hanging in the wind.

Answer 4

2% Inflation. In a recorded conversation today slash interview by Ron Paul, Ben Bernake stated that inflation was running at 2%. You can see it at the URL below. In the interview, Ben said that "The inflation rate is something we pay close attention to...".

Now that is said. Most of the production people in my company has been let go or laid off. The majority of Production is moving to China. And that 2% rate does not include food or gas. If it did the, rate is more like 18%. It looks good but times are tough and look worse ahead.

Answer 5

I really don't think inflation is LOW. I don't know about you, but I pay 300 a week for groceries for my family. That's about 175 dollars a week more than 7 years ago. My gas budget is up about 300 a month for my family. Housing has doubled if not tripled in many areas. Yes I have been making more, but Is your standard of living any better? I have much less extra money than I had 7 years ago. That is the mess. Yes I have had enough. Your BUSH stinks!!!!!!! That should be a bumper sticker.

Answer 6

You can thank the Fed for those numbers. People forget the mid to late 70's and the early 80's when we had an inactive and weak Fed. Volker came along and put monetary policy on the right course and since then inflation, unemployment and interest rates have been under control.

People have short memories and forgot about double digit inflation, interest rates and unemployment happening all at the same time.

But then again Carter was president at the time.........

Answer 7

Alan Greenspan was on the Daily Show with Jon Stewart, he didn't seem the least bit concerned with our economy. He was very relaxed and confident. I like the money I am making, and I am also giving an increase to charity and paying higher taxes as I move up in tax brackets. Alas, though, we probably should change course so we can actually use Hillary Care.

Answer 8

Low inflation? Are you kidding me? How about Bush running up the largest national debt in modern US history.

Have you not looked at a simple graph of the DECLINING value of the US Dollar?

Many other countries are now stocking Euros instead of USD.

I highly suggest watching a few documentaries about our money system and how it will eventually collapse.

Remember history class and those Europeans buying a loaf of bread with a wheel barrow full of currency? Or using it for heat in the winter?

Answer 9

The mess I see is an America that is divided more than even before. People are holding on tight to their partisan titles and refusing to budge.

And, must we remind you, our country is in debt $9 trillion. This after having a surplus of $230 billion when Clinton was in office.

I'll also remind you that home forclosures are at an all-time high, the number continues to rise and Americans are in more personal debt than ever before.

Answer 10

growth in the U.S. has been the result of borrowing by both the government and people. This can continue as long as someone outside the U.S. is willing to finance our debt and the Federal reserve floods the world with U.S.dollars. It will soon all end in a big,big mess

Answer 11

I won't bother answering all of these but you are being fooled by Bush economics. That's what Greenspan was trying to say. Tax cuts MUST be accompanied by equal cuts in spending-that's supplyside economics. Bush is instead using Keynesian economics(using high goverment spending to spur the economy).

They also believe in positive prapaganda. By making you believe the economy is good, you spend more money which spurs growth.