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Current Events & Hot Topics Current Events & Hot Topics

It's the Economy, and We're Not Stupid

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Several articles and links:

Household income is below recession levels, report says

Household income is down sharply since the recession ended three years ago, according to a report released Thursday, providing another sign of the stubborn weakness of the economic recovery.

From June 2009 to June 2012, inflation-adjusted median household income fell 4.8 percent, to $50,964, according to a report by Sentier Research, a firm headed by two former Census Bureau officials.

 Incomes have dropped more since the beginning of the recovery than they did during the recession itself, when they declined 2.6 percent, according to the report, which analyzed data from the Census Bureau’s Current Population Survey. The recession, the most severe since the Great Depression, lasted from December 2007 to June 2009.

http://www.washingtonpost.com/business/economy/household-income-is-below-recession-levels-report-says/2012/08/23/aa497460-ec80-11e1-a80b-9f898562d010_story.html

Big Income Losses for Those Near Retirement

Americans nearing retirement age have suffered disproportionately after the financial crisis: along with the declining value of their homes, which were intended to cushion their final years, their incomes have fallen sharply.

The typical household income for people age 55 to 64 years old is almost 10 percent less in today’s dollars than it was when the recovery officially began three years ago, according to a new report from Sentier Research, a data analysis company that specializes in demographic and income data.

Across the country, in almost every demographic, Americans earn less today than they did in June 2009, when the recovery technically started.

http://economix.blogs.nytimes.com/2012/08/23/big-income-losses-for-those-near-retirement/

GOP Presidential candidate Mitt Romney has never blamed President Obama for the state of the economy when Obama took office.  Romney has, however, said that Obama has failed in what he promised to do, and continues to preside over the weakest recovery in history, and is responsible for bad policy that has hindered growth:

President Obama’s Failure

 

Romney-2012-Blog-ObamasFailure.jpeg

President Obama assumed office at a moment of crisis. While some of the policies that both he and President Bush pursued helped to pull us back from the brink, it rapidly became apparent that the real challenge facing him was finding a path toward longer-term recovery. Washington was at a crossroads.

One option was to put faith in American workers and businesses. Down this path lay an embrace of market-oriented solutions that empowered the private sector to succeed as it had succeeded before. While the market had clearly gone off the rails, driven in no small part by unwise government policies, the underlying strength of the American free-enterprise system was intact and could have been harnessed to create a recovery as sharp as the recession was deep.

The other option was to put faith in government. Down this path lay more spending, more debt, more government regulation, more bureaucracy—ultimately, more control for Washington over the national economy. Unfortunately, primed by decades of liberal orthodoxies, and liberal suspicions of the private sector, this was the direction in which the Obama administration marched.

Even before taking office, Barack Obama and his team settled upon an approach to resuscitate the economy that entailed massive fiscal stimulus. Proposing to begin the stimulus with more than $775 billion in new government spending, which the incoming administration trumpeted as the “biggest, boldest, countercyclical fiscal policy action in American history,” they put forward highly specific predictions about what their policy would accomplish: “A package in the range that the President-Elect has discussed is expected to create between three and four million jobs by the end of 2010.” Their report even provided a chart showing that, with the stimulus, the unemployment rate would be held under 8 percent.

The stimulus was implemented and the money was spent.  But the labor market continued to shrink and an additional 2.5 million jobs were lost. Instead of remaining below 8 percent, the unemployment rate soared past 10 percent and has remained above 8 percent for 31 consecutive months. As of the second quarter of 2011, two years after the Great Recession officially came to an end, GDP still has not recovered to its pre-recession level. The absence of recovery has transformed the tragic occurrence of high unemployment into the far more catastrophic phenomenon of long-term unemployment. At the end of the recession, the average duration of unemployment was 24.1 weeks. Now more than two years later, that number has spiked to a shocking 40.4 weeks, the highest number since the Department of Labor started tracking the statistic in 1948.

What went wrong? Despite the Obama administration’s insistence that the stimulus would be “timely,” “targeted,” and “temporary,” the program was poorly conceived and managed. Take, for instance, the infrastructure portion of the stimulus—some $150 billion of spending. Although President Obama had spoken out about “shovel-ready” projects that the stimulus program would underwrite, in fact, few if any projects were actually ready for the shovels. The envisioned infrastructure projects were often tied in knots by the federal government’s own regulatory apparatus, as President Obama was himself belatedly to discover.

When the President’s Council on Jobs and Competitiveness met with him, it recommended streamlining the federal permit process for major construction projects. It was explained to the President that the numerous hurdles in the process of applying for a permit and then gaining approval can cause delays for “months to years … and in many cases it can cause projects to be abandoned. ... I’m sure that when you implemented the Recovery Act your staff briefed you on many of these challenges.” President Obama reportedly reacted with a smile, saying, “Shovel-ready was not as ... uh … shovel-ready as we expected.” The Council, led by General Electric’s CEO Jeffrey Immelt, is said to have erupted in laughter.

While the stimulus faltered, President Obama moved on to a legislative agenda that, far from addressing the economic crisis, focused on big government market interventions with decidedly anti-growth implications. Obamacare, Dodd-Frank, and cap-and-trade are the signature examples. But threatened tax increases, impending environmental regulations, special favors for politically connected interest groups and labor unions, stalled trade agreements, draconian restrictions on energy exploration, and out-of-control spending undermining the nation’s fiscal position also took their toll. It was precisely the immense uncertainty thereby generated that inhibited investors and entrepreneurs from moving forward with the very kinds of plans and investments that the economy depends upon for growth.

The results of President Obama’s failed approach and misplaced priorities are, sadly, exactly what anyone with private sector experience could have anticipated. Standard & Poor’s August 2011 downgrade of America’s sovereign credit rating was almost an inevitable outcome of a set of policies that produced massive year-in, year-out deficits, a national debt that approached the total size of U.S. GDP, and a stalled economy. It will take a long time to repair the damage, restore consumer and business confidence, return to economic growth, and thus ultimately restart job creation. It will also take presidential leadership of a very different kind from what Barack Obama has offered."

http://www.mittromney.com/blogs/mitts-view/2011/09/president-obamas-failure

This is what Romney usually talks about in his speeches:

"[Romney] elaborated on a five point plan to invigorate the economy: energy independence; improving the education system for our children and our workers; taking advantage of trade globally to open new markets and export our goods, while stopping China’s cheating; cutting and capping federal spending, and getting on track to have a balanced budget; and, being the champion for small business to grow and create jobs."

http://www.humanevents.com/2012/08/26/romney-ryan-in-ohio-a-five-point-plan-to-invigorate-the-economy/

Here's the details:

http://www.mittromney.com/sites/default/files/shared/BelieveInAmerica-PlanForJobsAndEconomicGrowth-Full.pdf

The most pressing social issue today is the economy

Visit Mitt Romney for President, CafeMom Group

by on Aug. 28, 2012 at 8:28 AM
Replies (41-50):
denise3680
by Gold Member on Aug. 28, 2012 at 3:20 PM
1 mom liked this

personally I do not think this is an either side issue but a both sides issue.  None of them in Washington are looking out for the real needs of Amerians, but for the ones they relate to and what could and will effect them and theirs only.  I really do agree with some of theladies on these boards that a 3rd or alternative party needs to get in there and shake things up. JMHO

pamelax3
by Gold Member on Aug. 28, 2012 at 4:08 PM
1 mom liked this

We have got to elect some one that is competent to handle this job and Obama has shown he is not. Obama has no intentions on helping anyone but himself and until people realize that we will continue to go down hill as a nation

LucyMom08
by Gold Member on Aug. 28, 2012 at 9:49 PM

 I'm confused...it's not ok place any blame on Bush for this current mess, but it's ok to say he had a hand in fixing things?

"President Obama assumed office at a moment of crisis. While some of the policies that both he and President Bush pursued helped to pull us back from the brink,"

rfhsure
by Bronze Member on Aug. 28, 2012 at 9:49 PM
1 mom liked this

 "[Romney] elaborated on a five point plan to invigorate the economy: energy independence; improving the education system for our children and our workers; taking advantage of trade globally to open new markets and export our goods, while stopping China’s cheating; cutting and capping federal spending, and getting on track to have a balanced budget; and, being the champion for small business to grow and create jobs."

 

'Romneycare' is pretty much the same, if not worse than Obamacare. He says he'll improve the education system? How? How would taking advantage of trade and exporting goods help our economy? We already do plenty of trade and export with other countries. Outsourcing our products reduces jobs, the last 20 yeas have proven that. Cutting and capping federal spending, that he does plan to do, like how he plans to drastically reduce funding for medicaid, which will cost our senior citizens an extra 5000 dollars a year. A balanced budget? for who? for him. Being a champion for small business, how is he going to do that? Shut down Wal Mart? romney is the embodiment of the Capitalist belief. His 5 point plan is 5 pints of contrived bullshit that's cutely worded so he can convince people he's doing good when he's doing whatever he can to increase the amount of money going into his pocket. His only real points are simply arguments that he can do better than Obama. what if Obama did kickass, what would he say then? It's the only thing he has to go on. No president, whether it was Obama, or freakin Abraham Lincoln could have fixed the economy in the state it was left in after bush's reign of terror. The democratic and Republican parties are both just as skewed these days. Both presidents are more about what they can do that the other guy didn't than what they could do on their own. Everything that comes out of that mans mouth is a prewritten  line of crap written by a hired member of staff because it sounds good to us desperate americans in our ruined economy. When you really look at his real plans, he's just planning to continue everything Obama is doing, only he's going to profit more off of it and he knows how to wrap it up in a pretty money colored package.

rfhsure
by Bronze Member on Aug. 28, 2012 at 9:50 PM
3 moms liked this

 

Quoting pamelax3:

We have got to elect some one that is competent to handle this job and Obama has shown he is not. Obama has no intentions on helping anyone but himself and until people realize that we will continue to go down hill as a nation

 Because a man who diverts funds into foreign accounts to evade taxes to put more money in his pocket clearly isnt out to help himself.

Jambo4
by Bronze Member on Aug. 28, 2012 at 11:14 PM

Only thing worth reading in this group for today.

Thank you.

Quoting Meadowchik:

Several articles and links:

Household income is below recession levels, report says

Household income is down sharply since the recession ended three years ago, according to a report released Thursday, providing another sign of the stubborn weakness of the economic recovery.

From June 2009 to June 2012, inflation-adjusted median household income fell 4.8 percent, to $50,964, according to a report by Sentier Research, a firm headed by two former Census Bureau officials.

 Incomes have dropped more since the beginning of the recovery than they did during the recession itself, when they declined 2.6 percent, according to the report, which analyzed data from the Census Bureau’s Current Population Survey. The recession, the most severe since the Great Depression, lasted from December 2007 to June 2009.

http://www.washingtonpost.com/business/economy/household-income-is-below-recession-levels-report-says/2012/08/23/aa497460-ec80-11e1-a80b-9f898562d010_story.html

Big Income Losses for Those Near Retirement

Americans nearing retirement age have suffered disproportionately after the financial crisis: along with the declining value of their homes, which were intended to cushion their final years, their incomes have fallen sharply.

The typical household income for people age 55 to 64 years old is almost 10 percent less in today’s dollars than it was when the recovery officially began three years ago, according to a new report from Sentier Research, a data analysis company that specializes in demographic and income data.

Across the country, in almost every demographic, Americans earn less today than they did in June 2009, when the recovery technically started.

http://economix.blogs.nytimes.com/2012/08/23/big-income-losses-for-those-near-retirement/

GOP Presidential candidate Mitt Romney has never blamed President Obama for the state of the economy when Obama took office.  Romney has, however, said that Obama has failed in what he promised to do, and continues to preside over the weakest recovery in history, and is responsible for bad policy that has hindered growth:

President Obama’s Failure


Romney-2012-Blog-ObamasFailure.jpeg

President Obama assumed office at a moment of crisis. While some of the policies that both he and President Bush pursued helped to pull us back from the brink, it rapidly became apparent that the real challenge facing him was finding a path toward longer-term recovery. Washington was at a crossroads.

One option was to put faith in American workers and businesses. Down this path lay an embrace of market-oriented solutions that empowered the private sector to succeed as it had succeeded before. While the market had clearly gone off the rails, driven in no small part by unwise government policies, the underlying strength of the American free-enterprise system was intact and could have been harnessed to create a recovery as sharp as the recession was deep.

The other option was to put faith in government. Down this path lay more spending, more debt, more government regulation, more bureaucracy—ultimately, more control for Washington over the national economy. Unfortunately, primed by decades of liberal orthodoxies, and liberal suspicions of the private sector, this was the direction in which the Obama administration marched.

Even before taking office, Barack Obama and his team settled upon an approach to resuscitate the economy that entailed massive fiscal stimulus. Proposing to begin the stimulus with more than $775 billion in new government spending, which the incoming administration trumpeted as the “biggest, boldest, countercyclical fiscal policy action in American history,” they put forward highly specific predictions about what their policy would accomplish: “A package in the range that the President-Elect has discussed is expected to create between three and four million jobs by the end of 2010.” Their report even provided a chart showing that, with the stimulus, the unemployment rate would be held under 8 percent.

The stimulus was implemented and the money was spent.  But the labor market continued to shrink and an additional 2.5 million jobs were lost. Instead of remaining below 8 percent, the unemployment rate soared past 10 percent and has remained above 8 percent for 31 consecutive months. As of the second quarter of 2011, two years after the Great Recession officially came to an end, GDP still has not recovered to its pre-recession level. The absence of recovery has transformed the tragic occurrence of high unemployment into the far more catastrophic phenomenon of long-term unemployment. At the end of the recession, the average duration of unemployment was 24.1 weeks. Now more than two years later, that number has spiked to a shocking 40.4 weeks, the highest number since the Department of Labor started tracking the statistic in 1948.

What went wrong? Despite the Obama administration’s insistence that the stimulus would be “timely,” “targeted,” and “temporary,” the program was poorly conceived and managed. Take, for instance, the infrastructure portion of the stimulus—some $150 billion of spending. Although President Obama had spoken out about “shovel-ready” projects that the stimulus program would underwrite, in fact, few if any projects were actually ready for the shovels. The envisioned infrastructure projects were often tied in knots by the federal government’s own regulatory apparatus, as President Obama was himself belatedly to discover.

When the President’s Council on Jobs and Competitiveness met with him, it recommended streamlining the federal permit process for major construction projects. It was explained to the President that the numerous hurdles in the process of applying for a permit and then gaining approval can cause delays for “months to years … and in many cases it can cause projects to be abandoned. ... I’m sure that when you implemented the Recovery Act your staff briefed you on many of these challenges.” President Obama reportedly reacted with a smile, saying, “Shovel-ready was not as ... uh … shovel-ready as we expected.” The Council, led by General Electric’s CEO Jeffrey Immelt, is said to have erupted in laughter.

While the stimulus faltered, President Obama moved on to a legislative agenda that, far from addressing the economic crisis, focused on big government market interventions with decidedly anti-growth implications. Obamacare, Dodd-Frank, and cap-and-trade are the signature examples. But threatened tax increases, impending environmental regulations, special favors for politically connected interest groups and labor unions, stalled trade agreements, draconian restrictions on energy exploration, and out-of-control spending undermining the nation’s fiscal position also took their toll. It was precisely the immense uncertainty thereby generated that inhibited investors and entrepreneurs from moving forward with the very kinds of plans and investments that the economy depends upon for growth.

The results of President Obama’s failed approach and misplaced priorities are, sadly, exactly what anyone with private sector experience could have anticipated. Standard & Poor’s August 2011 downgrade of America’s sovereign credit rating was almost an inevitable outcome of a set of policies that produced massive year-in, year-out deficits, a national debt that approached the total size of U.S. GDP, and a stalled economy. It will take a long time to repair the damage, restore consumer and business confidence, return to economic growth, and thus ultimately restart job creation. It will also take presidential leadership of a very different kind from what Barack Obama has offered."

http://www.mittromney.com/blogs/mitts-view/2011/09/president-obamas-failure

This is what Romney usually talks about in his speeches:

"[Romney] elaborated on a five point plan to invigorate the economy: energy independence; improving the education system for our children and our workers; taking advantage of trade globally to open new markets and export our goods, while stopping China’s cheating; cutting and capping federal spending, and getting on track to have a balanced budget; and, being the champion for small business to grow and create jobs."

http://www.humanevents.com/2012/08/26/romney-ryan-in-ohio-a-five-point-plan-to-invigorate-the-economy/

Here's the details:

http://www.mittromney.com/sites/default/files/shared/BelieveInAmerica-PlanForJobsAndEconomicGrowth-Full.pdf


Sisteract
by Whoopie on Aug. 28, 2012 at 11:16 PM
GLOBAL economy. GLOBAL crisis.
jada424
by Member on Aug. 29, 2012 at 5:27 AM
The greedy company I worked for 8 years moved over seas in November last year unexpected. I made very good money there and was very shocked at the decision. Since then I sent out at lest over 1000 resumes and even tried applying for jobs out of my area of expertise but still no response. I have been willing to work jobs at 10hr which is very low from what I have earned the last 8 yrs. That is where my frustration for the current president has started. Instead of informing the dream act he needs to be bringing jobs back to American!
MsDenuninani
by Silver Member on Aug. 29, 2012 at 9:55 AM
2 moms liked this


Quoting Meadowchik:

 

Quoting _Kissy_:

Jobs need to pay a living wage.

Indeed, people do need jobs paying a living wage.

Household income is below recession levels, report says

Household income is down sharply since the recession ended three years ago, according to a report released Thursday, providing another sign of the stubborn weakness of the economic recovery.

From June 2009 to June 2012, inflation-adjusted median household income fell 4.8 percent, to $50,964, according to a report by Sentier Research, a firm headed by two former Census Bureau officials.

 Incomes have dropped more since the beginning of the recovery than they did during the recession itself, when they declined 2.6 percent, according to the report, which analyzed data from the Census Bureau’s Current Population Survey. The recession, the most severe since the Great Depression, lasted from December 2007 to June 2009.

http://www.washingtonpost.com/business/economy/household-income-is-below-recession-levels-report-says/2012/08/23/aa497460-ec80-11e1-a80b-9f898562d010_story.html

Is there any economy hit by the recession in the world doing better right now than the US? 

Every country hit by the recession out there is struggling, and they are all doing worse than we are.  Whatever job you think Obama did, he did it better than any one of his peers.

Further, if Romney is promising a quick fix to the economy, he's a big fat liar.  There is none.  US businesses learned during the recession how to cut costs and lay off workers, and they realized that they didn't have to hire any of them back to keep making money going forward.  And they're not going to, and if Romney's telling his supporters that he can make them, he's lying.  Every tax break he's proposing will line the wealthy's pockets with money that they will spend elsewhere, and any end to regulation he's proposing will just help them do it even more.

Veni.Vidi.Vici.
by on Aug. 29, 2012 at 10:05 AM


Quoting candlegal:

Romney wasn't my first choice but anyone can do a better job than Mr. Hope and Change.  He had his chance and he failed.

Quoting ramita:

I definitely agree with most of this. I'm still not sure if romney is the man for the job but obama's plan was not as planned as it should have been for that large amount of money


I cannot disgree with this enough. While we definitely need change Romney is hardly the man to lead the way.

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