I read in the news today that "Obamanomics" is working, according to some marketing firm. I don't see a clue where I live. How about the rest of my fellow hubbers?
Everyone assumes that any sort of stimulus was supposed to make things "better". The truth is, it might be that it just kept things from getting worse. How many construction companies didn't lay off people for the winter because they knew big projects were coming. That doesn't show up as "new" jobs, but it also means a lot of folks didn't lose their jobs that might have.
I'm more interested in economics than politics, so while I'm not going to comment on the particulars of the policies, I will quibble with the term. Whether you want to call it a brilliant government policy or tax and spend liberalism, none of it adds up to a new system of economics.
Just my 2 cents.
The freight transportation index was up in January. That means that freight companies were basically carrying more stuff - which is a sign that the economy is picking up. Historically, increases in the FTI always indicate recovery from a recession.
http://www.bts.gov/press_releases/2010/ … 11_10.html
Hiring increased slightly in March as well.
http://www.nytimes.com/2010/04/03/busin … 3jobs.html
Most economists say that we are headed for a jobless recovery and it will take a year or three before unemployment returns to "normal" levels.
We are definitely on the upswing, but not sure how much "up" we'll actually see.
Obama didn't do a whole lot either way in my book. The stimulus did some good, but the bank bailout was a Bush thing - and even though I despise Bush I think the bailout prevented our economy from imploding into a black hole.
Really, it's too early to tell. Wait and see.
Obamanomics? You mean the policy of growing government, out of control spending on entitlements with borrowed money, and crushing tax increases??? When has that EVER worked in history?
Even Obama admitted in his campaign tax increases are a drag on the economy, which is supposedly why he cut them for the middle class. Of course that was just a bribe to get us to support his hair brained socialist schemes and to accept the coming tax increases, which he will claim we need in order to cut the National Debt, and which his bipartisan panel to reduce the National debt will recommend in December, after the elections, to institute a VAT tax, a regressive tax which will hurt the poor the most, and it's a hidden tax in that it will be buried in the price of everything we buy. The good news is it will raise billions of dollars for the government to waste away on even more entitlements, Rest assured, government isn't about to start behaving fiscally responsible anytime soon.
IF YOU WANT TO KNOW WHAT IS HAPPENING WITHOUT BIASED REPORTING read the business section of the local newspaper, watch business programs on cable. Try Saturday mornings , there are many good ones that debate the facts.
All the indicators are pointing up for the American economy.
Other countries are doing better, but that only points the way for America's recovery.
The job recovery has already started in Australia, and we are looking at getting it down to 4% from 5.3% by next year.
Well, let me say this: The economy in my state has gotten steadily worse. Nevada's unemployment rate went up another tenth of a point last month (13.9%). I know Michigan is alot worse off than we are, but, damn, when is this going to end?
I don't think it works. I am not seeing any legistlative reform in place to get lending on the right track on the long term. Also Obama really wants banks to start lending again, which got America to where it is today; kind of counter productive.
Also, the Obama administration issued about $1.5 trillion bonds so far. In 2008 alone, the annual debt interest payment was $241 billion, about 10 percent of all federal tax revenues. Please note that the current FED interest rates are virtually zero. As consumer spending and inflation will start picking up sooner or later, the FED will have to hike the interest rates (high inflation and thus a devaluing USD is the last thing that the US wants right now). Increasing interest rates on the other hand slow an even fragile economic growth.
I did not agree with the bank bailouts. The bailouts did not solve any problem: the loans are still there, the only difference is that now the US government (and thus US taxpayers) has to pay for it: it is a 0 sum game. What the Obama administration should have done is to put a guarantee on all private and corporate deposit to be paid to the depositor. This could weed out bad credit, yet keep afloat the banking sector, by people not having to worry about loosing their savings. Also, it would have costed much less. America is likely to see tax increases, and bigger and more influential government in the near future: something the free-spirited american will not like.
by jiberish7 years ago
http://www.washingtonpost.com/wp-dyn/co … 01900.htmlIn this Washington Post article it says that two-thirds of the stimulus went toward tax cuts, fiscal aid to states, and expanded unemployment benefits and food...
by Moderndayslave5 years ago
With the income gap between the wealthiest American's and the soon to be decimated middle or working class ever increasing. How much more proof do you need that tax cuts for the wealthy isn't creating jobs or supplying...
by MikeNV7 years ago
The Associated Press released a story today... an anti-republican, pro Obama piece about jobs created with stimulous money in South Carolina in a mostly Republican area."The new hires came from a broad area...
by earnestshub7 years ago
GM reckon that although they had a lousy year, the will be in profit this year and all the bailout money is to be paid back by June.There have been quite a few companies paying the bailout money back. Is this another...
by Cassie Smith5 years ago
I can't wait for the Obama Administration to spin this one. Did they say something about the economy recovering?
by uncorrectedvision5 years ago
What was my title? I thought about it and decided that Paul Krugman was the real point of this forum. I do know something about economics, politics and Paul Krugman. I know very little about the...
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