Saturday, October 04, 2008

Our Booming Economy

Robust economic activity for September. Not:

The U.S. economy lost 159,000 jobs in September, the worst since March 2003, the Labor Department reported Friday.

The economy has now lost 760,000 jobs this year, further evidence that the economy was in a recession even before the financial market crisis of the past few weeks.

Now that we've nationalized all the bad debts that investment banks and the rest of the gang created the past five years, I've got a fine solution.

We do what Sarah and John prescribe: Cut taxes.

If we cut those suckers to zero, especially for the upper brackets, we'll get this sorry-ass economy moving again. We're just not reducing taxes fast enough.

(Happily, the entertainment business is "recession proof". Everybody says so. And we believe that, right? Right?)

12 comments:

Anonymous said...

Fred,
Saw you on FOX this morning, very nice job and congratulations.

I agree lets cut taxes and get the economy moving. Also remember that over 50% of the stock is owned by the middle class via 401K and pension plans. This is a fact that the politicians don't mention when the topic of corporate taxes comes up. Corporations do not pay taxes right?...customers, shareholders, and employees suffer when taxes are high.

Ray said...

It sounds like its time for a few folks to hit the job boards while there are still good jobs.

www.linkedin.com (professional networking)
www.indeed.com (aggregated job listings)
www.realmatch.com (matches you to jobs)

Good luck to those looking.

Anonymous said...

I don't think we're grasping the gravity of the problem here. Tax cuts will make a miniscule dent. It has a familiar ring to it, but it is a one-liner.

Inflation is going to be a monster, the falling dollar is going to be a monster, and global commodity markets are going to be monsters. You are going to have to start thinking of this as a whole new world. Because it is.

Anonymous said...

The government has been ridiculously inflating the strength of the economy for at least five years. IN addition, for at least the last twenty years, they have a record, Republican and Democrat, of using bogus data to track unemployment, inflation, GDP (remember GNP? -whatever happened to that?)etc. As the world has changed and the US has been unable to keep pace, those figures became under more pressure than usual. The last five years you've seen the train basically coming off the tracks with regard to all data from the government. This last month is just the US finally admitting things are truly awful.

But, taxes aside, what you have is a continuing downward spiral, rescue bill or not. Zero investment (too expensive with regard to existing US debt - the world has been fronting our bills, folks) equals less employment, creating more demand on social services. Add on top of that social security and healthcare bursting at the seams, people on the verge of retirement watching their 401K evaporate, and you have even more debt. Who is going to pay for that? The global economy is giving a resounding no. Americans are going to have to pay one way or the other, capitalist or socialist, Republican or Democrat, old or young. And pay for it with a dollar that is worth less to the rest of the world and unable to buy as much needed real goods to keep the way things people are used to humming along at the same pace. It's not property values here. It's everything. There's no magic bullet here.

Steve Hulett said...

A few points:

"Cutting taxes" has been been a totally bogus fantasy since the turn of the century. (Even in 2000 we weren't running a "surplus", just a much smaller deficit).

Taxes were never cut. They were simply shifted. If you don't cut spending and bring it in line with income, you're just kicking the problem down the road. There was a reason we had high inflation after WWII; we had to unwind the huge wartime deficits.

Trade deficit: We make way fewer things here than before. We import vast quantities of manufactured goods from overseas -- principally Asia. We run an annual trade deficit that mirrors the government deficit. Our trade surpluses ended with Ronald Reagan.

The way this fustercluck gets solved? We inflate our way out of it. After a painful recession.

Wait for it ...

Floyd Norman said...

You speak the truth, Steve.

Clearly, we're screwed.

Anonymous said...

And we'll be more screwed if McInsane and Pain are elected. If that happens you can count America out for the count.

Anonymous said...

Well now that Sony Pictures Television has sent all the artist jobs on The Boondocks, that were once at Adelaide, over to Korea, I guess we see where they're trying to cut the costs.

Anonymous said...

Yes, but writers on Adelaide's Sit Down Shut Up made up for the difference. Lesson learned? - Don't pick up a pencil in this town. You are treated like shit by everyone.

Anonymous said...

This country needs smaller government and less taxes. If anyone thinks the government can do a good job at a universal health care system just go spend some time at your local favorite government run institution like the DMV and see how good the service is.

oh joy.

Anonymous said...

Or go talk to anyone from Canada or another progressive country who has lived both systems and knows firsthand that you have no freaking clue what you're talking about.

The health care isn't run in government-style DMV locations -- it's run through regular doctors offices just like here. It's simply collectively paid by everyone through the government. I would kill to be back on universal health care.

Next time, try finding out a little more about what the system is before you spout whatever Hannity and Limbaugh tell you to say. Get a freaking clue.

Anonymous said...

I cant stand going to the DMV!!!!

I sure hope it doesn't go that way but it looks like the government is becoming a nanny state doesn't it.

Site Meter