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Reports

It’s Still the Economy, Stupid

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Posted on Nov 13, 2007

By Marie Cocco

Sometime before the average price of gas topped the $3-a-gallon mark, just as Wall Street was getting jumpy about its year-end bonuses—the cache is expected to dip by 10 percent this year, down from last year’s record haul of $23.9 billion—an inevitable moment arrived. The economy beat Iraq as the issue of most concern to Americans, according to a Newsweek poll.

    It’s hard to fret over whether Manhattan financiers will be buying summer estates in the Hamptons next year, or merely renovating that waterfront cottage with so much potential. Still and all, in an economy where for years the greatest rewards have trickled up, it gives me the jitters to think that the rich might suddenly become more like the rest of us: suffering the fallout from the too-often-ignored scandals and the utter neglect of nagging problems that are distinguishing characteristics of American economic policy. 

    The broad credit crisis now rocking the financial markets is the unwanted child of the mortgage crisis. Now looming is a retail crisis. Based on an abysmal October and the inevitable squeeze from fuel prices, holiday sales are expected to slump. This comes on the heels of the tainted-toys threat. And this, just after that annual and increasingly depressing envelope arrived to inform millions that their health insurance premiums and other out-of-pocket health expenses will again be rising in 2008. That’s for people who got the good news. Some will get the bad news that their employer has decided to stop offering coverage.

    In August, while Washington was consumed with anticipation of Gen. David Petraeus’ September report on the efficacy of the troop surge in Iraq, the Census Bureau gave Americans an update on a story they already are familiar with: Their pay is stagnant. Adjusted for inflation, median annual earnings of men and women who work full time fell in 2006, for the third year in a row. Health insurance premiums, meanwhile, grew by 78 percent between 2002 and 2007, according to the Kaiser Family Foundation. Cumulative growth in wages during the same period was 19 percent.

    The shock and awe with which some in the media have reacted to news of deepening economic pessimism is itself shocking. It is the result of elite isolationism that puts more faith in broad numbers—overall growth has been strong thus far this year—than in the breach of faith so many workers are experiencing.

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    “American concern about the economy as a top-of-mind issue has been fairly low so far this year,” the Gallup polling organization wrote in a Nov. 2 analysis. Still, those who are dissatisfied with the country’s direction (and that’s now a huge majority) “are more likely to mention aspects of the economy than any other issue.” By the summer, Gallup said, the public’s rating of economic conditions was sinking, and “had become among the most negative that Gallup has measured since the early 1990s.”

    Not since the last serious recession have Americans been so squeezed by economic pressures, and so scared about them. Yet seven weeks before the Iowa caucuses, here is the state of discourse: Republican presidential candidates continue to tout the benefits of tax cuts as a solution to every problem, of less regulation always being better than more, and of free trade shaped immutably by business interests. This is the Bush brand of economic policy. At the moment it sells about as well as lead-painted Chinese toys.

    Democrats, meanwhile, have taken a dreary turn into a campaign about the campaign. Barack Obama and John Edwards are so consumed with knocking Hillary Clinton from her front-runner’s perch that they’ve made the contest all about her. They use the same diversions to which Republicans always turned when they couldn’t figure out any other way to topple Bill Clinton. Each of Hillary Clinton’s parsed words is supposed to represent a character flaw; each twist of the tongue somehow indicative of inner slime. Note to Democrats: Every day you make the headline about Hillary, it is not about the housing crunch or the horrible prices at the gas pump.

    Clinton is not as skilled at verbal jousting as is her husband. Yet she would do well for herself, and maybe even the country, if she would just tell voters what Bill always did: This campaign isn’t about me. It’s about you.

    This is what voters—sticking close to home to save on gas, swaddled in sweaters and hoping that no one in the family gets sick—really want for Christmas.     

    Marie Cocco’s e-mail address is mariecocco(at)washpost.com.   

    © 2007, Washington Post Writers Group


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By TAO Walker, November 23, 2007 at 8:47 pm Link to this comment

All this panicky talk about the stupid economy is just more of the same shell-game that the thing is itself.  If “the economy” was a bus it’d be already through the guard-rail and falling over the cliff.

“Management” has long-since moved their portable assets off-shore.  Their asses won’t be far behind, and only a token few supervisor “goats,” who stayed aboard thinking to rob the fare-box at the last minute, will be sacrificed along with all the hapless “passengers.”

There’s a pretty constant hue-and-cry, among commentors here and elsewhere, for some “straight talk” from the media and those supposedly in “leadership positions” about the dire straits theamericanpeople are really in today.  You even get some of that from regular people here, maybe offering examples of what they mean.

It’s all an exercise-in-futility at this point.  What good-hearted people could better be engaged in now is getting together to help one another possibly survive the terminal plunge….and then out of the wreckage. 

There is no “saving” The Economy!

HokaHey!

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By Conservative Yankee, November 15, 2007 at 1:56 pm Link to this comment
(Unregistered commenter)

“This is what voters—sticking close to home to save on gas, swaddled in sweaters and hoping that no one in the family gets sick—really want for Christmas.”

No, not all.

What this northern Maine oil-fired voter wants most for Xmas is a candidate not beholding to “corporate interests” One who will speak truthfully about the climb of energy prices, talk to us as if we were adults, and explain how things would be different ....starting on day one… with them in the White House.

Oh my Oh my, we already have a candidate like that! 

Kucinich 2008

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By Jonas South, November 15, 2007 at 12:29 pm Link to this comment

Marie Coco aptly highlights the sine quo non of success in a universal health care system, i.e. a single payor. But while some wonks love to ponder the pros and cons and the policy details, many more American eyes can be expected to quickly glaze over.

Let those eyes look instead to Michael Moore, or rather to his movie, ´Sicko´. In his entertaining yet poignant presentation, every country he visited that provides good free health care to everyone, has adopted a single payor system.

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By Chuckwagonchuckie, November 14, 2007 at 12:23 pm Link to this comment
(Unregistered commenter)

Until the American people have had enough of the idiots running the government it does not matter which party is double dipping our pay checks. It is beyond my comprehension no one is stepping forward with a plan looking after America FIRST and foremost.
Voting for this group of wannabes is a vote for more of the same from either party. Both parties will support more money and troops in the middle east, more wellfare checks,more taxes and more illegal aliens to support by MIDDLE CLASS America.
Ten years from now th eAmerican Serf will be in place and the middle class gone.

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By NABNYC, November 14, 2007 at 11:05 am Link to this comment

From the moment Bush took office, the big neocon plan was always to spend all the money in the U.S. treasury and run up so much debt that it would not matter who ran the government in the future—because the country would be broke, and there would be no money available for any social programs.  Mission accomplished. 

Hillary Clinton is the worst possible choice for the Democrats because—she’s really a Republican and she agrees with almost everything Bush has done. 

The Republicans realize they may lose the white house in 2008, so are beginning the counter-attack of No New Taxes.  Bush’s speech yesterday to some middle-American group was all about No New Taxes.

Hillary Clinton’s campaign mantra has been:  pay down debt.  No funding for any social program until the debt is paid off.  Which is about the same as saying no funding for any social programs.

And of course as long as G.I.Hill supports these insane wars, that ties up most of our money in any event.  And, of course, Hillary also plans to attack Iran if Bush doesn’t do it, and she and Obama have both “pledged” to eliminate Hamas and Hezbollah even though the U.S. is not at war with them.  But they are both so generous in sending our young men and women to die, and in blowing our money providing protection for Israel.

If we end the wars and bring our troops home immediately, we might have a chance of pulling this out economically.  But possibly not.  Remember the neocons are applying the same tired old formula they have been using in Africa as colonialists then neo-colonialists, as follows:  1.  Install a puppet government (Bush); 2.  Bribe the government to do as you want; 3.  Get the government to borrow money, to spend money, and to pledge the assets of the country to the neocons; 4.  Government defaults, neocons step in to protect their “investment” and instruct the government to stop all social programs, end healthcare, education, sanitation, road construction, bridges and raise taxes on working people, then give all the taxes to the neocons to pay down the debt; 5.  Alter the economy as instructed by the neocons.  Most of these things are well underway. 

For #5, we are almost at the point of turning control of the entire government over to the multinational corporations.  For example, before he leaves office Bush will “interpret” the H-B1 visa laws to allow businesses complete discretion to decide how many workers to bring in from other countries, use at 1/3 what they would pay an American, fire them eventually, then bring in the next batch.

Edwards is the only candidate who is talking about the economic disaster facing Americans.  And I support him and anyone else who points out Hillary’s flaws.  She would not be a candidate if her husband had not been in bed with every multi-national corporation for years, hustling them for enormous amounts of money to enrich himself and to use so his wife can buy the white house.  Anyone but Hillary.

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By GW=MCHammered, November 14, 2007 at 7:44 am Link to this comment
(Unregistered commenter)

Gas prices tripled
Home prices doubled
US Debt skyrocketed
Education costs rabidly rose
Poisoned food and toys globally bushed
War and criminal immigration blew up in our face

But!

Truth molested
Real wages froze
Careers exported
US Dollar savaged
Savings rate plummeted
Graduation rates crucified
Quality health care anesthetized

Bu$hCo’s Democracy tormenting the world

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By James, November 13, 2007 at 10:09 pm Link to this comment
(Unregistered commenter)

Crisis? Yes. Serious? Yes. Potential for a brighter future? Yes. Hillary being the answer? No. No, no, no, no, NO! Only if it comes down to her against a Republican. In the meantime, I keep praying for Obama, Edwards, Kucinich, Richardson…She’s better than a Republican but that corporate DLC sell-out is still worse than most Democrats.

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By Enemy of State, November 13, 2007 at 8:21 pm Link to this comment

Its more than just the economy. Its also about our attempted robbery of Iraq’s oil. The country may well decide that $2T, and a few thousand soldiers lives was worth the oil -estimated at $30T. Thats a pretty good return on investment (if the crime can be completed as planned). Right now the violence is going down, thanks mainly to the near-completion of ethnic cleansing. The news cycle from Mess-o-potemia may well beak in the Republicans favor.

  As an additional benefit, the residents of that part of the world are sure to be pissed as hell at us. More jihadis fodder. The anti-terrorist, “we need Republicans to protect us” game, may have new life in it. Don’t take 2008 for granted. It can still be lost.

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By iamhalfdemon, November 13, 2007 at 12:21 pm Link to this comment

What a bunch of crap!!!!! We have been hearing this for the past 6 years!!!!! I am sick of it!!!!!

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By anonymous, November 13, 2007 at 8:47 am Link to this comment
(Unregistered commenter)

So, the solution to the economy is to help Hillary complain about it?

How much is she paying you, anyway?

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By mary, November 13, 2007 at 8:30 am Link to this comment

The reason the Democratic candidates have to go after Sen Clinton is because the news media has decided their days are boring and they need an old fashioned food fight, frivolous as it is, to spice things up.  To hell with what we, the American Voter wants to hear.  What really amuses me is the fact that the media seldom gets it right, yet we seem to let them continue to dictate their whims.  The economy has been a problem for most Americans for some time.  We’ve lost pensions, savings, health insurance, jobs and job security while most Corp executives continue to get fat. It’s clear our Reps take our money and don’t do their job.  That won’t change until we, the voter, exterminate these parasites.  They don’t represent us or our Constitution.  The criminal way the mortgage industry operates used to be illegal when these deals were done in back rooms, on red and white checked tablecloths.  Now they’re done behind large mahogany desks in big bank buildings and they call it capitalism!  It is the economy stupid, now get out and vote these morons out of office, demand the prosecution of these destroyers of our Constituion, and lets demand some commonsense and decency be restored.  Now we all know very well it is imperative that we get away from oil.  This should be the topic of discussion for all candidates, not the crap we’re getting now…...

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By SamSnedegar, November 13, 2007 at 5:24 am Link to this comment

Sorry, but Iraq IS the economy. It’s about oil, in case no one told you; either we steal it, or we go down in flames—-actually we go down anyway, the stealing of oil only puts off the denouement for a day when happily I will be dead and gone forever.

The big issue is that you and your fellow opiners won’t talk about the REAL economy, which is all about oil and nothing else right now, so you try to pretend that what is happening to the dollar isn’t tied to the Iraq adventure which is saving the dollar from even more tumbling.

So sad that you can’t play with a full deck; the game of bridge is hard enough to bid and play when you have all 52 cards in the deck, but what you are doing by omitting oil from your discussions is similar to playing bridge with 40 cards and not telling the players which cards are missing. Even a non bridge player can see that it would be nearly IMPOSSIBLE to play any but a vague game of bridge under such circumstances.

Actually, if you are not going to talk about oil, then you ought to just shut up.

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