Wednesday, May 31, 2006

It's The Personal Economy Stupid

I read a blog where a conservative was despondent over the fact that nobody cared or gave credit to the administration for good economic news. I also read a story that Rove plans a strategy to run on the economy. From Bloomberg News Service:

Karl Rove, President George W. Bush's top political adviser, laid out a plan to win the 2002 congressional elections by stressing national security. For 2006, Rove is framing a strategy for Republicans to sell the U.S. economy.
In a recent speech, Rove argued that Bush's policies of tax cuts and trade agreements had pulled the nation out of recession, created millions of jobs, boosted productivity and increased disposable income. That record can help lead Republicans to victory in November, Rove said in the May 15 speech at the American Enterprise Institute in Washington.

No denying the macro indicators are up but who is reaping the rewards? Could this be a clue to why average Americans are not excited by the economy?

Almost all the benefits of productivity growth have gone to firms, and very little to workers,'' says Harvard University economist Jeffrey Frankel.....One explanation for the public malaise may be the distribution of prosperity. Total compensation for Americans fell to 65.4 percent of national income in 2005, down from 66.2 percent in 2001, Federal Reserve figures show. At the same time, corporate profits rose to 12.3 percent of national income, up from 8.5 percent in the year Bush took office. ``From middle incomes down, there has been very little gain,'' says Robert Solow, an economist at the Massachusetts Institute of Technology who won the 1987 Nobel Prize in economics. ``No wonder they feel they're not sharing in this prosperity.''

No wonder.

By most major indicators -- from a historically low 4.7 percent unemployment rate to strong corporate profits to the stock market -- the economy is moving forward. ``We are like marathon runners winning the race,'' Edward Lazear, chairman of the White House Council of Economic Advisers, said in a May 23 interview.

If you look more closely at the economic numbers you will see that the vast majority of new jobs are in the restaurant and hospitality business(jobs being taken by cheap foreign labor) and the government. We are handing truckloads of money over to the corporations through tax cuts and government policies. No wonder their numbers look so good.

As for Bush's tax cuts, Treasury Department figures show that as the economy recovered from the 2001 recession, federal revenue fell 6.9 percent in fiscal 2002 to $1.85 trillion and dropped again in fiscal 2003. In the third quarter of 2003 -- the strongest three months of economic growth in the Bush presidency -- revenue fell 4.9 percent to $430 billion from the same quarter a year earlier.


The housing market -- which has contributed to about half the economy's growth since 2001, according to a Merrill Lynch & Co. report -- offers more cause for concern. Housing starts fell 7.4 percent to an annual rate of 1.849 million in April, the fewest in 17 months, the Commerce Department said May 16.

Half the growth!!!? Oops

Seventy percent of 1,002 respondents in a May 8-11 Gallup poll said the economy was in fair to poor condition, up from 63 percent in an April poll.

Unaffordable health care. Gas 3.oo a gallon. Minimum wage 5.15. Low wage jobs with others going overseas. Think their is a chance that many peoples personal economy is far worse than the corporate numbers? Or is it the liberal medias fault for not saying how good things are over and over again?


Blogger Debra said...

Great assessment of the situation.

Specifically, my personal situation.

10:46 PM, May 31, 2006  
Blogger Dedanna said...


6:50 PM, June 01, 2006  
Anonymous Marc88200 said...

And yet we have a Repug candidate for New Mexico Lt. Gov. who says she is very concerned about health care. Her solution? "Market driven"
health care which has largely gotten us into the situation we are in and has been used as an excuse for not really doing anything like - National Healthcare.
I can hear them now - boo! hiss! terror of terrors its Socialized Medicine. You know, the type they have in all the other advanced industrialized nations that give their citizens more healthcare for less cost because it is regulated, and the taxes are less than the premiums we pay. You know, the type of healthcare only available largely in the U.S. to politicians who are opposed to socialized national healthcare but don't mind forcing others to pay taxes, including those who do not have or can not afford insurance, so that these great free market corporatist
whores can make sure they and their families are covered by socialized medicince. You know, like the chicken hawks who support the Iraq War but never have to be concerned about them or their progeny ever having to go. That of course is for the masses, not the elite. They are of course the truly unsustainable useless eaters and breathers.

3:43 PM, June 02, 2006  
Blogger Ron said...

I dont understand why the right wants to keep paying for poor peoples health care. With universal health care about everyone would pay something. And business could free up some capitol for other things. Isn't that what they are for? Or do they want the few to pay for the many? It makes no sense to me.

7:33 AM, June 03, 2006  
Blogger Dedanna said...

They want the $s from the overblown medical prices. i.e. prescriptions, doctor care, etc.

Who cares what's right by the people.

7:51 AM, June 05, 2006  
Blogger Ron said...

Right dedanna, which makes them insincere. How long do they hold Americans health at dollar point and how high does it have to get before people revolt and insist on another way?

2:51 AM, June 07, 2006  
Blogger Dedanna said...

People have been screaming for a decent medical system for years and years Ron.

It's just that no one listened, and were largely dismissed and/or ignored, so therefore they remain unheard.

It's been from all sides of the political spectrum that the dismissing has come from.

This country has been too much all about money and power for far too long (even Clinton & Gore were actually against a national health care system, and Reagan was dead set against it, as far back as I can remember it's been that way); if the U.S. brings in something decent for health care, there go the profits for those in power.

We're not people. We're just the bankroll.

8:21 AM, June 07, 2006  
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7:35 AM, July 19, 2006  
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1:11 PM, July 22, 2006  

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