I went to Costco today and it was eerie how empty the aisles were. All of us recognize the poor economy and are glad we have our nursing jobs
. President Bush tells us tax cuts will stimulate the economy.......
Editor:Bush Cites Report That Doesn't Exist
By James Toedtman
CHIEF ECONOMIC CORRESPONDENT
February 23, 2003
Washington - There was only one problem with President George W. Bush's claim Thursday that the nation's top economists forecast substantial economic growth if Congress passed the president's tax cut: The forecast with that conclusion doesn't exist.
Bush and White House Press Secretary Ari Fleischer went out of their way Thursday to cite a new survey by "Blue-Chip economists" that the economy would grow 3.3 percent this year if the president's tax cut proposal becomes law.
That was news to the editor who assembles the economic forecast. "I don't know what he was citing," said Randell E. Moore, editor of the monthly Blue Chip Economic Forecast, a newsletter that surveys 53 of the nation's top economists each month.
"I was a little upset," said Moore, who said he complained to the White House. "It sounded like the Blue Chip Economic Forecast had endorsed the president's plan. That's simply not the case."
Deputy White House Press Secretary Claire Buchan insisted Friday that the survey, which mentioned "the likelihood that some version of the Bush administration's latest stimulus package will be enacted," justified the president's claim. Moore said that a survey taken in January before the president announced his plan forecast 3.3 percent annual growth between the last quarter of 2002 and the last quarter of 2003. A survey taken in February reached the same consensus.
supporting your program by citing a forecast that doesn't exist...
Feb 25, '03
The economy was in a slide at least 18 months before the election. I am not going to speculate who is at fault because I think no one really is. It is a downward spiral in the economy that part of normal business cycles. However, I will state that the topography of American domestic business has changed dramatically in the last quarter century. There has been a shift from small independent business to corporate takeovers of previously small business sections of the market. In years past, if one needed home supplies, we went to the local lumberyard or nursery and did business there. Now it's Home Depot, other variations include WalMart, Chili's, Mickey D's, and so on depending on what product one was seeking. This shift has helped the consumer somewhat, but the trend is set very deep now to a one corporate economy, meaning the buyouts and marketshare takeovers continue until there is one huge corporation to buy everything from. It does present three really huge problems in which traditional stimulants to the economy are no longer effective. Slow reaction based on no net benefit to the owners of the business who are a jillion shareholders, and no longer mom and pop. Secondly, the huge amounts of capital are virtually impervious to governmental stimulation because in essence, the money does not have to be paid back...ever. Unlike mom and pop. Thirdly, the whole system is based on balance sheets and projected growth, not yield per capital unit, also unlike mom and pop. So what does any large corporation do to hedge their financials? Layoff folks, downsize, or the newest trick until everyone catches on...expand. Works for a while, until we go through a prolonged trough like we are in now, by then it's refractory in nature. The three above negate most governmental interventions because it's all smoke and mirrors. In years past, incentives to small business and consumers would stimulate mom and pop to go buy that new piece of machinery for their business because tax credits directed at them actually paid for it. I remember years past where my dad would buy a new tractor, truck, or build an accessory building because of tax credits. Presumably a lot of people did likewise and the economy slowly pulled itself from the morass. The competition from huge corporations and the tax laws are eroding small business, and I believe we will see hyper peaks and dismally bleak troughs in the economy as a mainstay for quite sometime, and virtually intractable through governmental intervention.
Last edit by Glad2behere on Feb 25, '03
Feb 26, '03
I double checked and found I'd overstated the debt.
We are in danger of default and taking money from federal pension funds right now, as we reach the ceiling on the current limit of $6.8 trillion. Congress has been asked by Treasury Secretary Snow to raise the ceiling to $8 trillion.
Whew! now I feel better!
Alan Greenspan hopefully put the kabash on another tax cut last week when he testified to the bad effect bigger deficits would have to our economy. We warned of a spiriling debt which could get out of control and leave us in a situation like...say Argentina?
BushII in his Januarary State of the Union promised we will not leave future generations to pay for our spending. Then he introduces a budget which contradicts that statement....
Myself, I urge folks to get their houses now while interest rates are low...they will be higher as the government competes for loans. I also recommend thinking twice about how much to fund 401/IRA retirement accounts, taxes are lower now they they most likely will be in the future. Go ahead and pay now, save your money and wait to pull in the higher rates of interest in the future!
Last edit by maureeno on Feb 26, '03