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Economy Weaker Than GDP Suggests

Discussion in 'Political Discussion' started by PatriotsReign, Aug 29, 2008.

  1. PatriotsReign

    PatriotsReign Rookie

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    Lagging Incomes Signal U.S. Economy Weaker Than GDP Suggests

    By Carlos Torres and Alex Tanzi

    "Aug. 28 (Bloomberg) -- The meager gains in earnings over the last year signal the U.S. economy is in much deeper trouble than the growth estimates indicate, economists said...

    The income side of the economy, with profits down for four straight quarters and employment falling, looks like a recession,'' said John Ryding, chief economist at RDQ Economics in New York."


    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIWiIsk9fzl8

    This is exactly what I have been describing all week regarding the "illusion of prosperity". We are told GDP increases, yet wages never keep up with economic growth. That means the growth is in fact a bubble or pumped up on economic stimuli. In a truly healthy growing economy, real wages always incease in proportion to GDP. Think about it...over 65% of all economic activity is generated by consumer spending. So if real wages aren't increasing at a rate on par or close to GDP, how can wages and consumer spending continue to drive growth? Answer...they can't.

    In fact, this means real wages are declining and prices are increasing. Not good for long-term sustainable growth.
    Last edited: Aug 29, 2008
  2. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    All the more reason to make sure McCain gets elected so we can bring gas prices down by drilling our own natural resources and bring food prices down by not using food for gas. Two concepts that seem obvious but, evidently, aren't.
  3. PatriotsReign

    PatriotsReign Rookie

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    What makes you believe McCain will accomplish this? Obama's energy plan mentions exactly what you're saying above.
  4. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    I don't believe Obamy wants to end using food for fuel. I'm also not at all convinced, in fact I think he's lying, that he will push for any drilling at all. He relented and said he'd consider it as part of a broader plan but I think his consideration would end on election night.
  5. PatriotsReign

    PatriotsReign Rookie

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    What I'm going to go by is "who is the more intelligent man to make the best decision?". I believe Obama is the more intelligent man. I think we all know McCain wasn't the best student in college, while Obama has to be in the genius level. He did graduate #1 in his Harvard Law class.

    Neither candidate will blatantly go against the will of the people on this issue...at least that's what I believe.
    Last edited: Aug 29, 2008
  6. Stokes

    Stokes Rookie

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    PatriotsReign, its time we sat down and had a little talk...:D

    Thing is, Obama's plan relies too much on alternative fuels that are not ready for prime time yet. He did it last night too, talking about a 10 year plan to get off oil, and shrugging off drilling as only a stopgap. Well yes, it IS only a stopgap, but that's exactly what we need right now! We need time for things like solar, wind, etc to become cost effective, and in the mean time we need to invest heavily in what we can do now, like drill for more of our own oil, use our coal and natural gas resources more, and aggressively build nuclear plants. This is the McCain plan in a nutshell.
  7. Stokes

    Stokes Rookie

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    I think he's the smarter of the 2 as well, but I disagree that intelligence is the best measure. I would say it is judgement rather than raw intelligence that a person should look for in a leader. Obama has not shown that he can use good judgement, and in fact some of his statements and previous associations point to him not having good judgement. Jimmy Carter was a smart guy, but what did it do for him? He showed poor judgement in office and it cost this country. Contrast with someone like Reagan, who wasn't the smartest guy in the room, but made good decisions while in office (not all of them, but overall). Bill Clinton was both smart and had good judgement (outside of his personal life obviously), Bush 43 is no genius AND has poor judgement (again, not all the time, but a good amount of the time, see Rumsfeld, Donald).
  8. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    The Messiah's "Change" will come, he won't tell you what it is now, you won't see the "Change" and you won't see the "Real Messiah" until he is safely installed into the security of the Oval Office, then God Help Us, I hope the American people and the Government will have the courage to come down on him hard just as soon as he starts all his "Socialist Far Left Wing Crap"

    The first message the people should send to this kid is, No More War, stay out of Darfur, we have lost enough lives in Iraq.
  9. pheenix11

    pheenix11 Rookie

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  10. PatriotsReign

    PatriotsReign Rookie

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    Just yesterday I saw a headline that said "Stocks poised to climb Friday"...so I click on CNN Money and see "Stocks slump (-108) on Consumer Worries". Unbelieveable! The market has become that unpredictable and volatile.

    Here's CNN Money's top 6 headlines;

    -Stocks slump on consumer worries
    -Personal income - Largest drop in 3 years
    -Income and poverty: Rank your state
    -Homebuyers squeeze desperate sellers
    -Better off? Not quite
    -Consumers: Hanging on by a thread
    Last edited: Aug 29, 2008
  11. Run DMC

    Run DMC Rookie

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    Hey PR, what are you some kind of economist or something?! :D
  12. PatriotsReign

    PatriotsReign Rookie

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    Another wise-guy!;)

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