Why The Economy is Better than You Think

Discussion in 'Economy' started by Nate Peele, Jun 9, 2008.

  1. Nate Peele
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    Nate Peele Member

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    It is about time the McCain campaign set the record straight. If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”. According to Hassett:

    The bias has an easy explanation. Yale University economist Ray Fair has shown that a weak economy hurts the incumbent party. If a Democratic-leaning press can convince everyone that the economy is in recession, then it can influence the election.

    Truer words have never been spoken. What the left wing biased mainstream media is doing is acting like gas is way overpriced at $4.25 per gallon or that the recent 5.5 percent unemployment rate is bad. They love acting like there’s a mortgage crisis, but all America really needs is a little bit of gumption and hardwork. I can tell you that the economy is doing great thanks to the Bush tax cuts and this is coming from a guy who only gets 9 miles a gallon. Don’t let the media tell you otherwise. In the words of the immortal Bobby McPherin, “Don’t worry be happy.”
     
  2. jreeves
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    jreeves Senior Member

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    I believe you have to provide the source if you are going to provide a quote?
     
  3. Toro
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    Toro Diamond Member

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    Right here.

    That is exactly something Hassett would say.

    Bloomberg.com: Opinion
     
  4. jreeves
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    jreeves Senior Member

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    I think the point of the article was that things aren't as dire as is being potrayed in the media. We are not headed for a depression. It is even highly questionable if we are in a recession by the classic definition. I don't think he was arguing people aren't feeling a pinch, but that it isn't as dire as some would like you to believe.
     
  5. Nate Peele
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    Nate Peele Member

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    I'm sorry, that's what I meant when I said If you haven’t read today’s Bloomberg you need to check out McCain adviser Kevin Hassett of the American Enterprise Institute’s column calling out the press for “politically motivated pessimism”.
     
  6. Nate Peele
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    Nate Peele Member

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    Exactly my point. There are a few isolated examples of people having hard times of it (usually cause they're lazy), but the economy is doing great for the most part.
     
  7. jreeves
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    jreeves Senior Member

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    I wouldn't say great, but definetly not headed for a depression as some would have you believe. Did you actually read the article or are you going to portray it as saying the article states the economy is in "great" condition?
    The point of the article is....

    The idea that the U.S. is in a terrible recession that may turn into a depression has spread like a malicious computer virus.

    Is false
     
  8. Diuretic
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    Diuretic Permanently confused

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    So, none of this is really happening right?

    Jeez that's a relief, I was started to get worried! :rofl:
     
  9. Diuretic
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    Diuretic Permanently confused

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    I'm far from being an economist (as I've mentioned a number of times) but my understanding was that being in a recession can be okay provided it triggers corrective action. But to trigger corrective action there's a requirement to be aware of the recession. Again, just my impression, but I understood also that it takes a while for the signs of recession to be recognised, it's usually well into recession that anyone notices and begins to take the required corrective action. So it seems to me also that (a) if someone doesn't notice or (b) they notice but ignore it for political reasons, proclaiming the lie that "the economy is in great shape" that that may just create the right conditions for an outright depression.
     
  10. Toro
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    We are not going into a depression, that is for sure. And the whether or not we are technically in a recession - which is defined as a significant contraction in a wide array of economic indicators by the National Bureau of Economic Research - or just stagnating is up for debate.

    However, what is not up for debate is how the consumer is feeling. The University of Michigan and the Conference Boards indices of consumer confidence is at lows not seen since the early 1990s. The consumer is seeing foreclosures not seen in nearly two decades. The consumer is seeing his/her home drop in price unseen since The Great Depression. The consumer is seeing inflation. The consumer is seeing stagnation or decline in his/her income after inflation. The consumer has seen an acceleration in credit card debt as they put more and more of their day to day items on credit.

    This is what the press is reflecting. The economy may or may not be in a technical recession. But the economy has grown by less than 1% annualized the last two quarters - the slowest since 2001 - which means that since the population grows 2% per year, per capita output is falling. And because after-tax disposable income relative to GDP is at its lowest in decades and has been declining, consumers are feeling it even more.
     

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