Nice OP-Ed on the real economic situation.

Discussion in 'Economy' started by iamwhatiseem, Jul 11, 2012.

  1. iamwhatiseem
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    iamwhatiseem Gold Member

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    I particularly like these words:
    The "hole in the bucket" analogy is an excellent one that I have been saying all along.

    Read more: A Hole in the Bucket Drains Recovery | Fox Business
     
  2. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    A shit sandwich is still a shit sandwich no matter how much mustard you put on it. The UE numbers over the past 3 months have been really bad, I'm not okay with sugar coating it.
     
  3. pinqy
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    pinqy Gold Member

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    Ahhh, the question is whether the perceived flaws make the economic situation look better than it really is, or if the criticisms make the economic situaton look worse than it really is.

    The changes in the CPI are criticized for making the rate lower, without addressing the question of whether the CPI had been overstated. Just looking at the math, it was overstated because a Laspeyeres index will always give the maximum bound of change.
     
  4. iamwhatiseem
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    iamwhatiseem Gold Member

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    I really don't think the Op-Ed was about CPI's period.
    For me the "hole-in-the-bucket" analogy where even if the government started writing checks directly to taxpayers - the lion share of that money would go to buy cheap foreign goods resulting in a very low net job gain. That is the hole in the bucket.
     
  5. expat_panama
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    expat_panama Silver Member

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    --and it's a crock.

    Half-baked pundits like Al Lewis know there's always readers for this garbage. Those of us working for a living know better, that jobs, factory output, wealth creation, and over all economic activity increase whenever that stupid 'trade deficit' gets bigger. The opposite's true also. Yesterday the negative trade balance shrank by $900 million while last week's nonfarm payrolls fell by 21,000 and continuing unemployment claims rose by 10,000.

    Trade deficit shrinks and more people out of work; in real life there's no way around it.
     
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  6. william the wie
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    william the wie Gold Member

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    All true but then explaining why national cash flow, GDP, is not national income much less the national balance sheet will take roughly 1500-3000 wds to explain. I do hope you have a much bigger can for all them worms.
     
  7. expat_panama
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    expat_panama Silver Member

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    Welcome back Will, you were missed here!
    We may not be talking about the same stuff here. The OP-ED says the trade deficit is bad for us and is the reason the economy tanked. That's crazy. The trade-deficit got smaller with the collapse and is returning with the recovery:
    [​IMG]
     
  8. william the wie
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    william the wie Gold Member

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    Exactly real national income, goods and services purchased, increases in sync with the trade deficit.
     

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