"the ten trillion $ hangover"

Discussion in 'Economy' started by midcan5, Feb 8, 2009.

  1. midcan5
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    midcan5 liberal / progressive

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    The $10 trillion hangover: Paying the price for eight years of Bush—By Joseph E. Stiglitz and Linda J. Bilmes (Harper's Magazine)

    By Linda J. Bilmes and Joseph E. Stiglitz

    "In the eight years since George W. Bush took office, nearly every component of the U.S. economy has deteriorated. The nation’s budget deficits, trade deficits, and debt have reached record levels. Unemployment and inflation are up, and household savings are down. Nearly 4 million manufacturing jobs have disappeared and, not coincidentally, 5 million more Americans have no health insurance. Consumer debt has almost doubled, and nearly one fifth of American homeowners are likely to owe more in mortgage debt than their homes are actually worth. Meanwhile, as we have reported previously, the final price for the war in Iraq is expected to reach at least $3 trillion.

    As bad as things are, though, this is just the beginning. The Bush Administration not only has depressed the economy and racked up unprecedented debt; it also has made expensive new commitments to the Medicare Part D prescription drug program, to disability compensation and education benefits for veterans, to replenishing the military equipment consumed in the wars in Iraq and Afghanistan, and simply to paying interest on the debt itself.

    The president is not solely to blame for American profligacy, of course. Congress approved inequitable tax cuts and spending binges, and the Federal Reserve and other regulators, along with the mortgage industry and millions of consumers, share responsibility for the housing collapse. Nonetheless, the outgoing administration has made a series of unwise economic choices that together will add up to a burdensome legacy."

    Kelso’s Corner » Blog Archive » The $10 Trillion Hangover - Paying the Price for Eight Years of Bush (Harper’s)
     
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    I'm not worried about that because Barack Obama is gonna' save our economy and our entire political system by putting things right again!

    Starting with cutting Federal spending. Have you seen the Stimulus bill? Why it cuts federal spending almost a trillion dollars over a period of just a few short years. Hooray!
     
  3. editec
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    editec Mr. Forgot-it-All

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    Nobbody is going to save this economy until we recognize that the USA needs the industries which we have essantially given away.

    What Obama might manage to do (we shall see) is mitigate somewhat the pain that comes from the disasterous policies which this nation has been putting into effect for the last couple decades.

    It now falls to Obama, much like it fell to FDR, to save the vestages of Capitalism which remain after decades of foolish tax and trade policies.

    If, as we are informed, the layoffs continue, and the housing market continues to be plagued by foreclosures, we've got some seriously bad economic years still ahead of us.

    But our economic ship of state is much like a very large vessel in that it will take a great long time to turn it around.
     
  4. midcan5
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    midcan5 liberal / progressive

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    Agreed. I am surprised that certain economists and corporate leaders are finally starting to realize this, huge import/export deficits and the lack of an industrial base will be our demise.
     

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