Buddy, Can You Spare A Dime?
Also? Just for variety this year, there's a thought that the Worst President Ever and Terror Czar Cheney might be planning to offer us a December surprise.
An economic meltdown.
Like most of the rest of us, they expect a Democrat to take over the White House in January and I'm sure they're content to dump their mess in the Left's lap. Until then, though, they're doing all they can to keep it from happening on their watch.
Military spending as a share of GDP is expected to grow by $75 billion in fiscal 2008, enough to neutralize a 0.3 percent decline in GDP.
That will keep things from tanking early enough so that the Worst President In History might be expected to take action.
Dick Cheney was secretary of defense for Bush 41; just before the 1992 election he engineered a big run-up in outlays, as the military restocked following the first Gulf War. (It was exposed in the first Clinton "Economic Report.") Is the Pentagon up to that trick again? I'd be astonished if it were not.
So would I.
If that hasn't filled your urge for financial crisis news, try this Op-Ed about irresponsible Congressional behavior.
Posted by AnneZook at 04:21 PM
It's not really going to be a huge surprise to most people, I think. "Economic Indicators" aren't coming close to measuring the sense of concern and impending doom which I seem to see from a lot of quarters. And repeated reassurances that the current situation is "temporary" have become a drone to which nobody listens unless they have a fiscal stake in propping up the current administration.
The economy runs on consumers: everything else is a rounding error. Some costs are fairly fixed for us -- utilities, gasoline -- but the profit margin of the world is in other stuff and everybody is holding on to their money (or smokin' it away in the tank) at the moment instead of living la vida shoppa.
"The rebate isn't the only little Dutch boy thrown headlong at the dike"
I'm thinking, Ahistoricality, that it will be a surprise to the approximately 1/4 of the oft-surveyed population who stubbornly persist in thinking that things aren't that bad, that the economy improves under a Republican administration, and that The Worst President Ever and his advisors and associates actually know what they're doing.
I find that it's educational to balance my reading of leftish news outlets and websites with forays into the rightwingnut side of the world. There are plenty of people who are looking at each economic stumble as isolated incidents and who either refuse, or aren't smart enough, to see the overall pattern developing.
I'm not sure what you're asking, Bengt
Are you unfamiliar with the Hans Brinker story of the little Dutch boy who stuck his finger in the leaking dike to stop the water, or not sure what it means in this context?
I am only vaguely familiar with this story but I find the metaphor strange. Was the boy really "thrown headlong at the dike"? Who threw him? Was throwing boys really an optimal strategy in the situation in question?
Anyhow, this has nothing to do with the issue at hand. The US economic policy is not very good. Too much reliance on monetary policy (which is counter-productive in the present situation) and too little and ill-considered fiscal policy. Not that matters are better in Europe with the increasing reliance on the ECB and any alternatives, for instance as proposed by the French President, are rejected out of hand by neo-liberal/neo-conservative economists and finance ministers as an "illusion de grandeur."
Well, they mixed the metaphor thoroughly., yes. :) But I'm not responsible for their poor writing.
I agree that the US economic policy is bad. Too much reliance on quick fixes, too much wishful thinking, and a lack of courage around taking the hard, necessary steps to put our country back on a solid foundation.
The current administration prefers to mess around with monetary policy in a desperate attempt to find a quick cure. They simply don't have the intelligence to put together a sensible, long-term fiscal policy of any kind.
And I'm not just randomly dissing Republicans, either. The current administration is composed largely of extremists, none of whom seem to have the necessary objectivity.
But I'll spare you my rant on the topic. :)