The following is an interesting take by an expert in the field. I wonder what folks have to say about it...experts and none experts alike
John Mauldin: Tax Hikes Will Kill the 'Recovery’, Which Isn’t Real Anyway
Posted Oct 21, 2009 07:30am EDT by Aaron Task in Newsmakers, Recession
The economic recovery currently underway is a statistical mirage, based on easy year-over-year comparisons and inventory rebuilding, John Mauldin, president of Millennium Wave Securities, tells Henry in the accompanying video.
The unemployment rate is closer to 12% when you include people who've been dropped from the survey and the "underemployment" rate - people working part-time vs. full time - is 17% to 18%, "and rising," Mauldin says. "That doesn't feel like recovery."
Mauldin, who writes the popular Thoughts from the Frontline e-letter, predicts the U.S. economy will be back in recession next year because of higher taxes, both new and with the expiration of the Bush tax cuts.
"The Obama administration [and] the Democrats aren't going to be able to help themselves," he says. "The deficits are going to be running so high they'll feel - politically -- the need to do something. The way they want to solve it -- instead of cutting spending is to increase the revenue. That's going to suck a lot of air out of the room."
Answer by tnmomofive at 4:18 PM on Oct. 21, 2009
As for the long-term, Mauldin worries America could repeat Japan's experience of a lost decade (or two), if not the Great Depression itself, citing the risk of policy errors such as trying to solve a debt crisis by issuing more debt.
Answer by tnmomofive at 4:19 PM on Oct. 21, 2009
Answer by mancosmomma at 4:50 PM on Oct. 21, 2009
I agree with both elements. Tax hikes will kill any chance of recovery, and I also believe that the recovery that they are claiming is manufactured and erroneous. I wish they had just done nothing and let the free markets determine failures. Oh well.....
Answer by QuinnMae at 5:37 PM on Oct. 21, 2009
Answer by Crissy1213 at 5:52 PM on Oct. 21, 2009
Answer by Carpy at 5:59 PM on Oct. 21, 2009
Answer by TBandNCmommy at 6:18 PM on Oct. 21, 2009
Answer by waldorfmom at 6:32 PM on Oct. 21, 2009
You can't have it both ways, either it IS a recovery or it isn't....
For your theory about taxes to be discussed, you must pick a side
Answer by sweet-a-kins at 6:33 PM on Oct. 21, 2009
Answer by urkiddingright at 7:19 PM on Oct. 21, 2009