Tag: Economic Growth

The Economy Is Healing

Or is it?

We seem to have great news ever month and every quarter that the unemployment is down, jobs are created and the GDP is slow but looking good……right?

The media leaps onto the news with both feet…..they have to keep high end investors happy and optimistic….they need to help them make the decision on where to put their billions that they are holding…..all in all the macro sector is looking good….the micro sector sucks and sucks big time!

Explain to me how you can say that the economy is doing well when this is happening…..

Temp jobs made up about 10 percent of the jobs lost during the Great Recession, and because of high turnover (the average length of temp employment is 3 months before a worker moves on to a permanent job), one in 10 non-farm workers were employed by a US staffing firm at some point during the past year, according to ASA. In fact, nearly one-fifth of all jobs gained since the recession ended have been temporary.

Many workers now have to periodically revalidate their status via systems of “continuous professional development”; almost all work, no matter how menial, involves self-surveillance systems in which the worker is required to assess their own performance. Pay is increasingly correlated to output, albeit an output that is no longer easily measurable in material terms. For most workers, there is no such thing as the long term.

Part time work and low wages these are what some are calling a recovery…..to me there is NO recovery as long as Americans are being hampered from making an adequate living…..the only way for the economy to truly heal is to grow the Middle Class…..and how can we do that since corporations will not?

From the CAP Action War Room….and it is a good plan…..

  • Investments in growing the middle class: Investing in education, infrastructure, energy, and innovation boosts the economy today and helps create the job creators and strong middle class that will fuel economic growth tomorrow.
  • Everyone paying their fair share: Tax cuts for the wealthy and huge corporations don’t grow the economy. If the wealthy aren’t paying their fair share, we simply cannot afford to make the investments in the middle we need to in order to grow the economy.
  • Minimum wage: Nobody who works full time in America should have to live in poverty. Raising the minimum wage will lift people out of poverty and create more consumers to help fuel the economy.
  • Health security:  Millions of Americans will soon have access to quality, affordable health care for the first time and the 85 percent of Americans who already have health insurance are seeing new benefits and better coverage as a result of Obamacare.
  • Retirement security:  We need to strengthen both Social Security and our private retirement system so middle-class Americans can afford to retire and live with dignity, a promise beyond the reach of too many.
  • Affordable housing:  The housing market is recovering, but we need to implement additional policies and reforms to help those who are still underwater and the millions who can’t get a loan to buy a home today.

The sad part is that there is not a elected official at any level, federal, state or local, that is willing to show courage and work for a plan to strengthen the Middle Class……..

Stop Screwing With The Economy!

If there is one thing that most Tea Partyers have in common….it is hate.  Not the hate of taxes (though some would argue)…..not even Obamacare……and the deficit is not on the list……the one thing that they all hate and want to make go away is…..(drum roll)……the Federal Reserve.

We all have our likes and dislikes but until such time as the Fed can be closed down or disbanded or ……well whatever….until that time we have to live with the fact that the Fed is in control of the money supply….as much as we may hate the fact….they are in control.

Every couple of weeks or months Mr. Bernanke must make the trip to Congress and do his thing….either testify or issue a report…and he recently issued such a report and what he had to say was very telling…..not that any of the clowns in the circus of Congress will heed his warnings…..but he made them the same……

(Newser) – The Federal Reserve isn’t planning to take its foot off the gas pedal anytime remotely soon, Ben Bernanke told Congress today, while rebuking legislators for not doing their own part to juice the economy. The Fed’s interest rate has been near zero since 2008, and Bernanke said he expects it to stay there for a “considerable time,” according to CNN Money. The Fed won’t ease up until unemployment drops to 6.5% or inflation passes 2.5%, and it doesn’t expect either to happen until 2015.

But he also criticized Washington’s recent economic moves, saying that the Fed didn’t “have the capacity to offset an economic headwind of this magnitude.” He cited the expiration of the payroll tax cut, other tax hikes and spending cuts (particularly defense spending), and the sequester as “a substantial drag on the economy.” Neil Irwin at the Washington Post translates the message to Congress thusly: “You’re the reason the economy isn’t taking off more.”

You may not like Bernanke but his words are accurate….Congress has done nothing to make our economy stronger….they have done nothing that would benefit the middle class……Congress wants to spend their limited time showboating at hearings that accomplish nothing but make for a spot ad in their next campaign.

Economists have been saying this same thing for 4 years….but NO one heeds the warnings or offers anything that would make our economy better…….hearings……37 votes to kill Obamacare……anything and everything except an economic solution……Repubs have spent 870 days without doing anything substantial, like offering bills, to fix the economy and create jobs…they even find bad news in the good news that the deficit will fall this year…..

You can hate the Fed but it is wasted effort…..why not hate Congress and then do something that will heal an ailing economy?  Like vote the douche bags out of office.  Or do nothing and bitch about stuff that you are too lazy to fix…..keep whining and watch the country crap out.  It is your choice.  Choose wisely.

Let’s Look Ahead

The Olympics are history….the USA did well, as always….only Spain gave the egocentric B/Ball players a bit of a scare…….it has been lovely trying to avoid the silliness of the election and now the MSM has something to talk about besides Mitt’s taxes….his choice of a VP…..so another few weeks of sanity and I will return to the wonderful, delightful world of politics after the conventions……I am enjoying my break and am not missing the name calling or the insults from partisanship…….

What is the projected growth of GDP for the United States for the next or two?  If memory serves me it is predicted to be a bout 2% or less……with growth at that slow pace what will the rest of the world look like?  Will the US be one of the few countries with growth?

The truth of the matter is that some of what we call “the third world” will do a whole lot better than the US……..the Middle East and North Africa will see about the same growth rate as the US……

Economic developments in the Middle East and North Africa region continue to be heavily influenced by the disruptions caused by the social unrest that started more than 18 months  ago. In addition to the challenges posed by societal violence in some cases and sometimes fundamental political change, the external environment for the region is weak because of its close ties with high-income Europe. GDP growth for the aggregate of the developing region eased to 1 percent in 2011 from 3.8 percent in 2010, on weaker outturns for Egypt and Tunisia; and declining output for those countries in civil conflict. Output is projected to strengthen in 2013 and 2014 on the back of increased political stability,  improved conditions in Europe, portending a return of FDI and tourism flows. Nevertheless, regional GDP is projected to rise by only 2.2 and 3.4 percent in 2013 and 2014 – well below the 4.8 percent average growth recorded during 2000-2008.

However this is expected….since the region is trying to sort out the economy with the Arab Spring uprisings……

What about the other area of my interests…..sub-Saharan…..How will they fair in the coming year?

Despite the turbulent global economic environment in 2011, growth in Sub-Saharan Africa remained robust, steadying at 4.7 percent in 2011 – just shy of its pre-crisis average of 5 percent. Excluding South Africa, which accounts for over a third of the regions GDP, growth in the rest of Sub Saharan Africa was stronger at 5.6 percent in 2011, making it one of the fastest growing developing regions. Looking forward, still high commodity prices, ongoing investments in new mineral discoveries, policy loosening in some countries, and lower inflation rates, should support robust domestic demand, with GDP growth projected at 5 percent in 2012, with a pick up expected in 2013 as the global economy rebounds. Nonetheless risks to these forecasts remain tilted to the downside, as the global economy remains fragile, and weaker growth in China could curtail growth in the resource-dependent Sub Saharan economies.

Appears that the economy and economic growth looks better in sub-Sahara than the rest of the area….why?  Could it be more that large banks are not as heavily involved as the rest of the globe….or could the World Bank be using its influence to set the region up for more exploitation?

Do You Want A Brighter Future?

I am always on a look out for some ways to give the people a bit more power or a lot more voice in their government…..and when I come across one such organization or group I try to pass it on with the hope that it could help make a difference….So, do you want a brighter future?

If you do then consider supporting a group called, “Contract For The American Future”….

Would you consider these items as important and needed to establish a new American century?

10 Critical Steps to Get Our Economy Back on Track

I. Invest in America’s Infrastructure

II. Create 21st Century Energy Jobs

III. Invest in Public Education

IV. Offer Medicare for All

V. Make Work Pay

VI. Secure Social Security

VII. Return to Fairer Tax Rates

VIII. End the Wars and Invest at Home

IX. Tax Wall Street Speculation

If you like what you read, then go to the website and sign their pledge/partition………http://htl.li/5Z5Eu

Share it with all your friends….we need to get America back on the right track and secure a better future for the kids……do your part!  People who know me….know that I want to see our democracy get better and stronger and from time to time I come across a good idea that is worth a thought or two…..and in doing so I try top pass them on to others and see if we can find a balance in our country….a balance between government and the people it is suppose to represent…..

Three Cheers For The Recovery

From the VOMITORIUM

Who will be claiming responsibility for the slowdown in the economy, slowed to 1.8%, below the expectations of all the economic wiz kids in Washington….but it is still growth, just at a slower pace….we will hear the experts say on the tube….look, the will say, inflation is down or holding steady……good one….that is because they do NOT figure in gas prices of food….if you throw that in then our inflation is about to run wild….every quarter we hear how well the economy is doing….then explain to the millions at are unemployed…..we hear that the markets are doing well,  so good that we have not seen growth like that since 2008….then explain it to the people who have lost their homes in the last month…..go ahead I will pause here for your explanation………(waiting…..waiting……)

Wait!  They have an answer!

The first-quarter increase reflected growth in personal consumption expenditures, private inventory investment, exports and nonresidential fixed investment. Federal, state and local government spending fell. Imports, which negatively affect the calculation of GDP, increased.

See told you there was good news (sarcasm, in case you missed it)……

But there are few questions that need to be asked of Bernanke or Geithner or whatever Wall St. insider is at the helm of our economy…… American labor has issued a couple of questions they would like to be answered….and I think they have some excellent questions….

1. Where are the jobs and why are the implications of the Fed’s actions so far not leading to sufficient job creation?2. How is the Fed going to respond to continuing weak economic growth?

3. How is the Fed taking into account in its decisions the powerful headwinds facing the economy, including falling housing prices, rising energy prices and large-scale layoffs and wage freezes for public employees?

4. How will the Fed’s policies address the inadequate public investment in the United States?

5. What is the Fed’s plan for closing the gap between economic growth and job creation? Between productivity growth and wage stagnation?

6. Can we have a healthy economy until we deal with rising inequality?

7. Is there anything the Fed can do to revive our economy if government at every level persists in irresponsible, job-destroying budget cuts at a time of economic weakness?

We will know just how f*cked we are…these questions will Not be asked by anyone in the media….and there will be NO answered offered up by the government….so we will continue to be subjects of the elaborate con job that is economic recovery……

And the disconnect does not stop there…..a recent poll shows that majority of the people feel that the economy is going badly…..the disconnect is that the media reports on macro-economics and Main street lives with micro-economics….and Main Street could give 2 shakes in Hell about the debt…..their personal debt concerns them…food prices concerns them…..being unemployed concerns them…..macro-economics concerns them not…they do not care that Samuelson basically invented the study of the macro field…they do not care…their only concern is their family and their livelihood……

Good News! Economic Growth!

College of Political Knowledge

Subject:  Economics Growth/Politics

Yes, there is some good news with the US economy…..regardless of what may happen in the future, it is growing……

At first glance, the 3.2 percent growth rate for gross domestic product looks light, considering economists polled by Reuters expected a 3.5 percent pace.

However, the figures show consumer spending growing at the fastest rate in four years and international trade providing a surprisingly large lift. Both show an economy that is pulling more of its own weight, an important development as government stimulus spending fades.

As they have said….not as good as expected but better than it could have been……but there is a few questions that I would like answers to about the world recession…..first, did the recession really effect the entire globe?  If it did…then explain this………

Growth in Sub Saharan Africa rebounded strongly in 2010. GDP in Sub-Saharan Africa is estimated to have expanded by 4.7 percent in 2010, up from the 1.3 percent growth recorded in 2009 and just shy of its pre-crisis average growth of 5%. However, the slower growth rate in the region’s largest economy South Africa (2.7 percent) dragged overall growth in Sub Saharan Africa for 2010. Indeed, excluding South Africa, growth in Sub-Saharan Africa is estimated at 5.8 percent in 2010, up from 3.8 percent in 2009. Growth in the region was supported by both external and domestic developments.

I would have expected the Third World (to use an archaic term) to lag further behind the so called Industrialized world……And I realize that you can have growth and still have a crappy economy……but……Please one of you that are an expert in international economics explain this to me and my readers…….Why is their growth so much better than ours?  What are they doing right?  Or what are we doing wrong?

Jobs–Issue #1

2010 Election series

Lecture #5

In less than week we have our thrilling yet somehow moronic mid-terms–and we all have heard the boring ads…..that healthcare is killing America….tax cuts will create jobs….the unemployed are lazy……social security is killing the country…..that the car is in a ditch….and on and on……all in all it is all a mind f*ck….no matter which side of the spectrum you wish to stand……it is ALL a mind f*ck!

The only thing Americans and I mean real Americans…you know the type…they work for a living and scratch out a small existence month to month….are worried about is….JOBS!  Where are the job?  Will I have a job next month?  Will job market improve?  All in all….this mid-term is about JOBS and JOBS alone!

Now friends…ask yourself, which one of the babbling idiots will really have a plan to create jobs?

Tax cuts?  Let’s see how many have the tax cuts creating so far?  Will privatization of SS create jobs?  Tell me, oh great sage, which one of the “people” and I use the term loosely have a REAL plan for job creation?  Would like an answer?  Alrighty then……not one of the candidates has a real plan to create a single job…they do have a slick tongue to deceive the mindless…and this mid-term will illustrate just how gullible the American voter really is…..sorry guys….YOU HAVE BEEN DUPED!  Again!

You know an intelligent being would learn from their mistakes…not so with the American voter…..they just keep flushing their vote down the toilet….time after time……a pathetic indictment of the American political system….

What Is China Doing Right?

By now the entire world is reeling from the recession that has effected everyone, in one way or another….economic growth has been dismal and recovery has been slow…..but yet there is a bright spot….China….

the UK’s Guardian is reporting:

The Chinese economy returned to double digit growth in the fourth quarter, with a jump of 10.7% year-on-year, but inflation is creeping up again amid fears of overheating.

Although the fourth quarter GDP figure was slightly below analysts’ expectations, it was the fastest for two years and a marked increase on the previous quarter’s 9.1%. It took 2009’s growth to 8.7%, outstripping the official growth target of 8%, the level some believe essential to create enough jobs to match growth in the labour force.

“China has become the first, on the whole, to achieve recovery and stabilization in its economy,” Ma Jiantang, commissioner of the National Bureau of Statistics, told a press conference in Beijing. But he said China would avoid major adjustments to economic policy given the “uncertainties” it still faces and a weak global outlook.

So, what is China doing right?  In the sense that they are showing a steady growth in their economy…..

ADDENDUM:  I have seen a reason for this success (?)…….at least according to the AP:

Bank of China plans to sell up to 40 billion yuan ($5.8 billion) in bonds to replenish its capital and meet government standards following a record surge in lending last year amid Beijing’s stimulus measures, a state-run news agency reported.Regulators have warned some banks that they have fallen below minimum capital requirements after handing out some 9.5 trillion yuan in loans last year. Banks are expected to scale back lending to roughly 7.5 trillion yuan in 2010.

China’s banking industry is regarded as the healthiest of any major economy because institutions avoided the mortgage-related turmoil that battered Western lenders.

Beijing hopes cooling the pace of lending will keep its economy growing without creating inflation and overheating. Other nations are counting on that growth and a healthy demand from China for their goods for their own recoveries.

Will The Economy Recover In 2010?

Personal opinion….not a chance!

The Economic Policy Center has a report of the lasting effects of the current recession…..

Educational achievement: Unemployment and income losses can reduce educational achievement by threatening early childhood nutrition; reducing families’ abilities to provide a supportive learning environment (including adequate health care, summer activities, and stable housing); and by forcing a delay or abandonment of college plans.• Opportunity: Recession-induced job and income losses can have lasting consequences on individuals and families. The increase in poverty that will occur as a result of the recession, for example, will have lasting consequences for kids, and will impose long-lasting costs on the economy.

• Private investment: Total non-residential investment is down by 20% from peak levels through the second quarter of 2009. The reduction in investment will lead to reduced production capacity for years to come. Furthermore, since technology is often embedded in new capital equipment, the investment slowdown can also be expected to reduce the adoption of new innovations.

• Entrepreneurial activity and business formation: New and small businesses are often at the forefront of technological advancement. With the credit crunch and the reduction in consumer demand, small businesses are seeing a double squeeze. For example, in 2008, 43,500 businesses filed for bankruptcy, up from 28,300 businesses in 2007 and more than double the 19,700 filings in 2006. Only 21 active firms had an initial public offering in 2008, down from an average of 163 in the four years prior.

Some economists are saying that the US economy will grow at a  pathetic rate of 2% over the years of the decade……all predictions say that the jobs will not return this year and may not return for several years……all in all the outlook for the middle class is dreary for the foreseeable future….the wealthy have a much brighter future than the rest of us…..we could change that….but we Americans are NOT that courageous….sad right?