Tossing the Good Economy Theory Out the Window

Tossing the Good Economy Theory Out the Window
August 30th, 2006 @ 8:01 pm

I’ve said here in the past that it was my opinion that the economy sucks. As a small business owner, I’ve seen the effects of the economic downturn first hand, that the Bush administration repeatedly has refused to acknowledge.

The new Census report sheds light on what many of us know but some refuse to acknowledge. An editorial about the census report in today’s NY Times says aptly on the state of the economy, “If you’re still harboring the notion that the economy is “good,” prepare to be disabused.”



On Monday, the NY Times reported that “the median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation.”



Not only has the median income dropped, but the “number of Americans living in poverty in 2005 — 37 million — was the same as in 2004.”



MORE & LINKS - http://blog.thedemocraticdaily.com/?p=4038#more-4038

I see working families in deep trouble every day. It's really sad.

and people can lose everything.

productivity. It was published on August 28th and may contain a few of the things you mention here but I think also contains more--especially on how the great economic recovery Bush cites is demonstrably a phenomenon based on 'good times' for those who are either wealthy or in the higher reaches of the upper middle class.

http://tinyurl.com/lgmuz

But it certainly sucks big time.

Kennedy on the Rise in Uninsured Americans and More Economy Blues…
August 30th, 2006 @ 10:42 pm

In my post below about the economy, I noted that there has been a rise in uninsured Americans under BushCo. The newly released Census Bureau statistics show that the number of uninsured Americans was record “46.6 million in 2005 demonstrating a 15.9% increase in those without health coverage.”

Below is a statement from Senator Kennedy’s on the rise in uninsured Americans:

“On the uninsured, as in so many areas, the Bush Administration and its Republican allies in Congress are long on talk and short on action. Under this Administration, over six million Americans have lost their health insurance — and millions more have been forced to pay more and more for less and less coverage. The new census report is a clear call for change.”

MORE & LINKS - http://blog.thedemocraticdaily.com/?p=4039

eat the rich...

"Silly me" said Lancelot Link. "See, when I say 'the 'conomy's strong and gettn stronger', what I mean is 'for my rich friends and myself'. Long as I'm in office, we're still a . . . what's Karl got written for things not to say .. . oh yeh .. . Gilded Yer on Yer Own Republic. There's another word starts with a "P" that I can't pronounce . . ."

Uh, that'd be PLUTOCRACY, Jethro Clampett.

the cable shows that sell items to the public are very heavily into "easy pay" as they call it. You can purchase an item and only pay a third or a fifth of the cost per month on your credit card. That sends a message to me that people's cards are maxed out and that's the only way they can get people to purchase.

The growing gap in the division of wealth in this country has been accelerating for some time, but Bush has pushed it over the edge, intentionally, I believe. Note that many department stores which used to cater to the middle class have now decided that they either have to be 'upscale' or 'downscale.'

http://www.usatoday.com/printedition/news/20041004/1a_debtcovxx.art.htm

That's 24% of the national debt. Plus the $9.5 Trillion is
highly leveraged due to low interest rates as American
homeowners took advantage of the real estate boom and
low interest rates to convert home equity into cash.

Homeowners have largely used that cash for consumption,
taking on new credit card debt or to pay down existing
debt in order to qualify for additional borrowing.

The personal debt overhang is both volitile and unsustainable.

Notice good news regarding the rise in incomes fails to mention
that the extra household income from income rises is already
spent.

The real situation would be best revealed by asking the question,
"How much would average American household income have to rise
to pay off $9.5 Trillion?"

there are non-stop adds for car dealerships offering 0% interest and 'employee pricing' and the auto market is feeling the squeeze. Without a middle class, who tha hell is going to buy all that stuff?

I really do believe the middle middle class has been and is being seriously eroded. From the standpoint of the social sciences I think that is bad for the country's political stability and from an economic standpoint, "Where in the Hell is demand going to come from?" The wealthy and the upper middle class can only buy so many hummingbird wings.

But I believe I also heard that even with the stability between 2004 and 2005 of the numbers of US residents who are impoverished, there has been an overall 20% increase in the numbers living in poverty between 2000 and 2005. Can't imagine why??? Oh! Yeah! What happened in 2000?

is going to be a bigger factor in this upcoming election than most realize.

----------------

As another small business owner, I've also seen the results of this economy firsthand. I talk to a lot of people - customers, city and state employees, other business owners, elected govt. officials speaking off the record... things are really bad.

It's the number one topic of conversation.