How is the economy doing?

wallyburger · July 25th, 2005, 04:26 AM

Conservatives And The Right Molly Ivins: 'Big time trouble: America continues to weaken, but why worry?'

Posted on Friday, July 22 @ 09:49:37 EDT
By Molly Ivins, Working For Change

AUSTIN -- If you had done a poll in November 2000, or in November 2004, I don't think you would have gotten out of single digits with this proposition: "George W. Bush wants to radically revise American law, including complete repeal of the New Deal, and take us back to the economic legal system that prevailed at the turn of the 19th century -- Robber Barons Redux."

During the past five years, both media and political circles have devoted an enormous amount of attention to social issues and culture wars -- rise of the Christian Right, anti-abortion groups, our debates over moral decline and moral relativism, prayer in the schools, school vouchers, displaying the Ten Commandments, sex and violence in entertainment, bias in the news media, gay marriage and all the rest of it. I sometimes think all of it amounts to a bunch of people saying, "The world would be a much better place if everybody else thought exactly the same way I do." Reminds me of Dr. Henry Higgins in his famous philosophical disquisition, "Why Can't A Woman Be More Like A Man?" Higgins finally discovers the ultimate problem: "Why can't a woman be more like ME?"

Then, of necessity, we have spent huge amounts of time on Sept. 11, terrorism, Iraq, and related and ancillary problems. It is not necessary to review the bidding here, but Iraq is becoming as divisive and unpopular as the Vietnam War.

While we have been absorbed in the silly circus of cultural issues and the riveting questions of the war, we've also been getting our pockets picked. Big time. I am impressed that cartoonist Lloyd Dangle in the strip "Troubletown" managed to get the whole problem into 12 panels, each announcing some piece of economic news accompanied by an American saying, essentially, "What, me worry?" The U.S. is over $7 trillion in debt (no problem); China buys $1 billion worth of U.S. treasury bills a day (thanks for floating us); Americans love the prices at Wal-Mart (made in China, cute!); the Chinese save 50 percent of their domestic product; the average American has $9,000 on his credit cards; our economy is fueled by a fragile housing bubble; the minimum wage is $5.15 per hour … ; taxpayers who earn over $1 million saved $30K under Bush tax cuts; the war in Iraq costs $9 billion a month; by 2040, our kids will be unable to do more than pay the interest on the national debt ... ; bankruptcy reform makes it impossible to escape your debts; in Darfur [Sudan], people earn $1.25 a day.

For those who prefer to get their economic news from a more respectable source than a cartoon, I recommend Bill Greider's op-ed article in the July 18 New York Times, "America's Truth Deficit." He begins with the startling thesis that we face structural economic problems as serious as those that destroyed the late Soviet Union and that, like the USSR before its breakup, our leaders cannot talk about these problems honestly. "[Our] weakening position in the global trading system is obvious and ominous, yet leaders in politics, business, finance and the news media are not willing to discuss candidly what is happening and why. Instead they recycle the usual bromides about the benefits of free trade and assurances that everything will work out for the best."

It is a curious thing that as the disadvantages and, indeed, perils of globalization become clearer and the subject of ever-more worried books by respected economists, the mainstream media keep treating the whole problem as though it were about a bunch of protesters in turtle costumes at the G8 summit. If it were not for Lou Dobbs on CNN, one would never even hear it mentioned on television.

Forget what the Supreme Court thinks about teaching creationism in the schools: Think about what it will contribute to the spiraling disasters of globalization by dismantling the entire economic regulatory system built up over the past 100 years. As Greider notes, "Washington defines 'national interest' primarily in terms of advancing the global reach of our multinational enterprises." Problem is, our multinational corporations increasingly work against the interests of Americans themselves. In addition to outsourcing jobs, the companies locate sham headquarters in off-shore tax havens to avoid paying taxes. The only restraints we have ever had on multinational corporations are government regulation and the right to sue the bastards for the various kinds of harm they cause. It is precisely those two forms of control that are being not just undermined but tossed out entirely by an increasingly activist right-wing judiciary.

Recommended reading: Greider's "One World, Ready Or Not"; David Korten's "When Corporations Rule the World"; and Paul Krugman's "The Great Unraveling."

Molly Ivins is the former editor of the liberal monthly The Texas Observer. She is the bestselling author of several books including Who Let the Dogs In?

© 2005 Working Assets.

Djaughe · July 25th, 2005, 05:08 AM

lol...alot of choices...and any given day I could pick each of them based on the news reports.

I voted for "The ecdonomy is going to Hell in a handbasket and bigger problems lie ahead"

In an odd sort of way I have to say the economy is stable...but american's financially are not and I believe it is only a matter of time before the whole economy collapses because of our stupid habits of getting into debt.

I have to also add this - fer some reason I feel living today feels alot riskier than it did in the past and has constantly made me feel insecure.

It seems to me that for folks that know how to play the career ladder and investments compared with the ones that don't - stand a better chance of being financially prepared for the future.

We have a teenage son graduating this year from highschool and I've been pushing him hard to be prepared for the global market - he's going to take international business/ political science at Michigan while learning Chinese and French.

Another item that keeps getting overlooked is that big-ticket items such as homes and cars, which have increased more than 50 percent in two decades....it just seems that the government has shifted the economic risk of the country to the american family.

I remember that unemployment compensation in the 1970's used to last 15 months...compared to the 6 months now. The current minimum wage does suck. Our population at the current pace of immigration is gonna double by 2040...with no apparent federal plan on how to deal with it.

In short the message I read from our government is this:

“You’re on your own.”

wallyburger · July 25th, 2005, 06:32 AM

It's destiny. The robber barons have been have been seperating us fools from our money forever and basically have tapped us out. No difference between the S & L scandals, the stock market crashes, fiscally draining wars with no benefit, corporate subsidies, out sourcing, land grabs from the farmers, oil gouging et al. Just waiting for the next fiasco that we fall for. My bet is on the real estate market bubble bursting.

ajcardfan · July 25th, 2005, 07:20 AM

I think it's going to be more important than ever for kids to get as much education and training as possible. I think the next generation is going to find a lot of midlevel jobs gone. The days when you could work your way from bagger to produce manager (for example) and make a nice wage with benefits are going away.

swd1974 · July 25th, 2005, 08:50 AM

The economy is fine. Perfect time to invest. People blame it on everything. Fact is we are still feeling the ripple from the tech bubble.

20+ years from now there will be major books and studies on that amazing bubble. Yahoo at 800$/share LOL

The only other concern is china getting a lot more oil in the future but not much we can do except make our lawmakers push for non oil cars.

SirStefan32 · July 25th, 2005, 12:02 PM

I think the economy is doing just fine. We just need to cut spending on social programs, cut taxes even more, and privatize a few things.

conraddobler · July 26th, 2005, 05:44 PM

We are getting poorer and I don't even need a poll to know that.

We don't make as many or as much real goods as we used too, our trade deficit is climbing and that pretty much sums it up.

Really Greenspan was puzzling over how long term rates can stay so low in the face of very steady pressure by the fed to effect them with it's raising what rates it controls or short term rates.

Best analysis I've heard yet said one of the explanations for it is that lower long term growth is being forecast by Wall Street because of our trade deficit, fiscal deficit and loss of manufacturing base means basically we must become poorer it's like economic law.

You cannot pay out more than your produce forever and still remain wealthy.

AzCards21 · July 26th, 2005, 06:11 PM

Quote:

Originally Posted by Djaughe

In an odd sort of way I have to say the economy is stable...but american's financially are not and I believe it is only a matter of time before the whole economy collapses because of our stupid habits of getting into debt.

This is actually how I see things going too. Only without the total economical collapse part. The rich will get richer because they know how to prepare for such a turn of events. The poor don't effect the economy that much because of limited purchasing power and influence. Who stands to lose the most?

The middle class paper millionaires that are living beyond their means.

I'd sure like to hear Derms take on this.

Pariah · July 26th, 2005, 06:17 PM

I like the overall direction of the economy, but these poll options don't really offer too much other that "it's great"--it pretty much goes right to "it sucks, and here are 5 options under 'it sucks' to express yourself with."