He doesn't but spending three trillion in IRAQ does not help. Also continually dropping rates tends to create bubbles.
Agreed...with people earning less, their focus will be on spending on essentials, not credit card debt...In fact, before they go bankrupt, they'll be maxing out credit cards... That being said, there are a few business that survive a recession...Booze and stripclubs...I need to invest in both...
No I wasn't but maybe you could explain to me how much control the president has on the business cycle.
Hold on there a second. Before we talk about wage hits, lets talk about why we're looking at a recession in the first place. Most people agree that a country is in "recession" when it experiences a decline in GDP growth in two straight quarters. Well, what's the number one factor in GDP growth: HOUSING AND DURABLES. So as spending on housing and durables continues to decline, as expected, eventually commercial banks will have to tighten up on lending as well due writedowns on assets as well as a crappy US Treasury vs Money Market spreads. Hell, firms like Citi have already canceled thousands of credit cards. So, as lending tightens, individuals will have less access to commercial bank lending such as home equity loans and credit cards, and will have to deleverage instead of spending on housing and durables.
Signing off on budgets that spend $400 Billion more annually than the government takes, thereby devaluing the currency is a start. Signing off on legislation that creates more sub-prime loans to create an "ownership" society, and then pressuring the Fed to keep interest rates low to create even more continues the process. Spending $500 Billion and counting, much of it overseas, on an ill-advised invasion continues the process even more. And then borrowing even more money for multiple projects like $15 Billion to fight AIDS in Africa or $3 Billion to secure Mexico's Southern Border, which do little to help the taxpayers that will end up paying for it pretty much finish it off.
Those are all valid points, but like I said, the President has less control over the economy than you think. You can't peg a recession on a President. Any real economist will tell you that. The government has tools to influence some of the business cycle, however the President has little access to them.
Well that's decided by the Fed, so I don't see how that is a valid point. Sure, Bush nominates the chairman, but that doesn't warrant the majority of the blame on Bush.
A Constitutional Presidency has very little control over the economy. The types of Presidencies we've had recently have significant effects on the economy.
I live in U.S but I no write english and I A+ student... .......also nice nick: "wakkoman" Who said he controls the business cycle? You probably wouldn’t believe me since I’m a D student according to you, so maybe you may want to read an article by Joseph Stiglitz, he’s a Nobel-winning economist……this article by him will explain to you what influence a President can have on an economy when he makes crappy decisions…..influence being the key word here....understand "wakkoman"? http://www.reuters.com/article/topNews/idUSN2921527420080302?feedType=RSS&feedName=topNews&sp=true
All valid points. Add to that the fact that the price of oil started skyrocketing the nanosecond we had troops arrive in Iraq.
I work in the steel industry and for one of the largest manufactures of our product in the world. We're seeing record highs in price for steel and little to no profit as there are no buyers at this time. The housing market is killing us as is the import of rods for wire. Manufacturing on our end is at an all time low, and we see no end in site as far as the steel increases go, which means less buying, zero production and loss of jobs in the plant. Our manufacturing plant is getting pwnd. I know it's a very sad thing to say, but my company desperately needs an active hurricane season just to reach the yearly plan.
It's time to stock on ethonol fueled dirtbikes, folks. Save all your printed currency. You're going to need fuel for your fires throughout the upcomming iceage. You may also want to invest in some sweet, sweet waders, as the ocean level will be rising since the polar ice-caps are melting and stuff. Ladies and gents, these are the end times. Someone hand me my beer.
Ron Paul's Texas Straight Talk for this week Making a Recession Great House Democrats recently adopted a budget with massive tax hikes, many of which are directed at those Americans who can least afford them. By allowing the Bush tax cuts to expire in 2010, this budget will raise income taxes not only on those in the highest income brackets, but raises the lowest bracket from 10% to 15% as well. Estates would again be taxed at 55%. The child tax credit would drop from $1000 to $500. Senior citizens relying on investment income would be hurt by increases in dividend and capital gains taxes. It's not just that the Democrats want to raises taxes on the rich. They want to raises taxes on everybody. The problem is, policing the world is expensive, and if elected officials insist upon continuing to fund our current foreign policy, the money has to come from somewhere. The wars in Iraq and Afghanistan have already cost us over $1 trillion. The Democrats' budget gives the President all the funding he needs for his foreign policy, so one wonders how serious they ever were about ending the war. While Democrats propose to tax and spend, many Republicans aim to borrow and spend, which hurts the taxpayer just as much in the long run. Supporting a welfare state is expensive as well. Over half of our budget goes to mandatory entitlements. The total cost of government now eats up over half of our national income, as calculated by Americans for Tax Reform, and government is growing at an unprecedented rate. Our current financial situation is completely untenable, and the worst part is, as government is becoming more and more voracious, the economy is shrinking. The bottom line is that Washington has a serious spending addiction. While both parties debate how to raise the revenue, both parties seem happy to spend over $3 trillion of your money in various ways. While some in Washington criticize the war in Iraq, very few are criticizing the interventionist mindset that got us into the war in the first place. Many so-called "Iraq War critics," criticize this administration rather than truly opposing the decades old policies that led to war. They claim they will eventually get the troops out of Iraq, but the danger is that they simply plan to move them around to other countries, not bring them home. The American people want peace. Minding our own business is the best way to achieve it. Not only is it also a whole lot cheaper, but free trade and friendship with other countries benefits all involved. This spending spree is exactly the wrong policy for an economy on the brink of recession. History has shown that all empires eventually crumble under a worthless currency and with an exhausted military. Since too many of our nation's leaders haven't taken the time to learn from history, we are seeing mistakes repeated through recently enacted policies such as the new House budget.
republicans had the golden opportunity at the beginning of the administration to really cut spending and decrease debt... too bad they decided to line their own pockets rather than look out for the best interests of this country.
tax and spend, borrow and spend- I like that! Spend, spend, spend- the difference between a growing federal government and a drug dealer is that the drug dealer believes people are entitled to their cheap pleasures and so they prey on the people who are willing to give up some freedom to get fast relief and the government... never mind.
