Tuesday, July 20, 2004

How is our economy--really?

That would depend on whom you asked. A Democrat might tell you it's terrible-the worst since Herbert Hoover's Depression! A Republican might say it's the best we've ever had, with growth not seen since Ronald Reagan was President! Can they both be right? Can they both be wrong? These are questions the voters need to resolve during this heated political climate.

The news moguls haven't been discussing-in depth-the economy; however, they did when growth was slow, then it was said it was a jobless economy, and then...nothing. This would lead most to believe that jobs have finally started to surge, but hold on! Let us investigate. What has happened to this economy?

The economy went through a recession starting in March 2000, the dot.com bubble busted, many people lost a lot of money and confidence, the stock market started to crash, we had a very nasty election for president in 2000, there were tax cuts that were backloaded in May 2001 (they wouldn't come into effect until 2006-2010,) there was a terrorist attack on September 11, 2001, thousands of people became widows/widowers with children, untold thousands of children became orphans, Wall Street was shut down for an entire week (amazingly quick return,) a war ensued in Afghanistan, scandalous corporation executives are being brought to account-but not before they (financially-electrically-and other products) hurt untold millions of people, we had another war-this time with Saddam Hussein in March 19, 2003, there was another (the third) tax cut in 2003 which finally included businesses, and with all of this-from August 2003 to May 2004-one million five hundred thousand jobs were created (across the board) by the free market. Unfortunately in a recovery, jobs are always the lagging indicator, the last to recover. However, people still have confidence and grit. We are going to make this economy work no matter what. That is the American spirit. We have not forgotten September 11, 2001, although many would like it if we did. No, we are the natural resource on which this country can always depend.

Duncan Maldrum, President of the National Association for Business Economics (NABE) has said "By almost any measure-output, employment, profit margins, capital expenditures-this economy is strong." Many economists agree with him. So why haven't we heard this? The President has done a poor job of speaking over the media and to the people, while the Democrats know how to call a press conference. Can it be bias in the conglomeration they call the news media? Maybe, maybe not. Maybe they just don't understand simple economics. Otherwise, the only other explanation is they believe anything the Democrats say as gospel. That is dangerous, for any supporter of a particular party. It makes it easier for people to exaggerate spin and be taken advantage of believe.

Remember, politicians are trying to get you to vote for them. They can't fool you if you are armed with the facts. Knowledge is power, use yours!

This is an article which I used to write this article. (It won't give me the link. Sorry about that.)

US Government Data Sources.

Economics and Statistics Administration.
Bureau of Economic Analysis.
US Census Bureau.
Bureau of Labor Statistics.
US Department of Treasury.
The Federal Reserve.

Non-government Sources.

Institute for Supply Management.
National Association for Business Economics.
International Monetary Fund.
Statistical Office of the European Communities.
Economic History Service, (Miami and Wake Forrest Universities).

Originally posted at My Newz 'n Ideas on 7/19/2004.

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