Psst -- What About the Damn Economy?

Do we have to wait for soup lines in Shaker Heights before we have a serious debate on the economy? In the last two Democratic debates, not one question was directed at what to do about the economy. Iraq, health care, the politics of parsing, pearls or diamonds -- all got attention. But the economy -- growth, jobs, wages, inflation -- the basic stuff has been missing in action. Now, with Republicans headed into the YouTube debate on Wednesday night, it's time for the unctuous moderators to cut to the chase.

The candidates haven't done much better than their interrogators. Republicans, for the most part, have been content to praise the Bush economy -- "the greatest story never told" in Fred Thompson's favorite mantra. Economic policy is just another ideological litmus test -- prove your conservative credentials by promising to defend the Bush tax cuts and sprinkle on a couple more, while pledging to slash domestic spending. But cutting spending (and jobs) as the economy is headed into a recession is akin using kerosene to douse a fire.

Democrats have focused more on the pressures facing working families -- health care, affordable college, deference to trade fears -- but they too have basically assumed a growing economy going forward. Hillary Clinton and Barack Obama's constant refrain is get Bush's "crushing deficits" under control. But deficit reduction when the economy is slowing doesn't make much sense either.

What's clear now is that this economy is in trouble. The credit crisis is roiling global financial markets. Housing prices and sales are down, with millions of foreclosures beginning to have far broader effect. Oil is at $100 a barrel. The dollar is sinking; gold is near record highs. Food prices are rising. Parents might well be tightening their belts while trying to find toys that won't poison their children.

Fed Chair Ben Bernanke is about as dour as he dare be publicly, projecting sluggish growth through the Spring. Larry Summers, Clinton's former Treasury Secretary, says a recession is more likely than not. (Bob Rubin, Summers' mentor, was no doubt too preoccupied trying to bail out Citibank to comment.)

Tomorrow's Republican YouTube debate should kick off a serious discussion about the economy. Republicans will no doubt call for more tax cuts, but they should be pushed on this. At a time when the speculators are betting against the dollar, when corporations are investing abroad, when a significant hunk of private U.S. investment pays for shedding jobs through mergers and acquisitions, and with inequality already at Gilded Age extremes, top end tax cuts aren't likely to generate much in jobs or growth in this country.

Rather than reducing deficits, Democrats would be better advised to argue for a bold investment agenda -- on conservation and alternative energy, on rebuilding our decrepit infrastructure from schools to bridges -- that would create jobs here in America and kick-start the economy. Voters are looking for someone who will lead. It is bizarre that the presidential candidates essentially ducked, while Republican Governor Arnold Schwarzenegger pushed to get big mortgage brokers to delay interest rate resets on mortgages that threaten another million homeowners with foreclosure.

Whatever the posture, let's have the debate. Most Americans thought this economy was in a recession or heading there when the Bush economy was at its height. Now it is in trouble and getting worse. Skip the questions on pearls and diamonds. Forgo the argument about who went negative first. We already know where Republicans are on Darwin and Democrats on drivers' licenses. It's time to find out what these candidates think about the turmoil threatening the economy, and what they would do about it.

Comments

[peaceandfreedom]

SteveL, I like this one too--let's move it up a few notches...

GreedyOldP­sychopaths (See profile | I'm a fan of GreedyOldP­sychopaths­)
Nor does the unemployment rate measure job displacement effects including median income, personal savings, and per capita disposable income. Beyond GDP and corporate profits, payroll data (US Department of Commerce - Bureau of Economic Analysis) is required in conjunction with both employment statistics and unemployment rate to fairly assess health of the economy to the average individual.

Job Displacement: Since 2000 over 3,000,000 manufacturing jobs have been lost. That is the most precipitous loss of manufacturing jobs recorded in the available online data (post 1957).

Average Personal Income: Stagnant since at least 2000 in terms of 2000 dollars.

Personal savings as a percentage of disposable personal income: 0.4% in 2006. That's the lowest since 1932/1933.

Per capita disposable income: Stagnant since at least 2000.

Yes, few signs of any problems with this economy for the nouveau riche. But give it time, they'll be joining the tapped out American consumer soon enough.

[peaceandfreedom]

SteveL, why don't you respond to the facts these posters put up against you rather than posting the same old shiite at the top like you own this board? Huh?

EileenMac
Well the MAJORITY of Americans are not experiencing any "growth". Quite the contrary...the majority of American families are in more debt than ever and even less hope for the future.

We are moving rapidly into a nation of nobility and serfdom, and the so-called "middle-class" is practically non-existent.

Americans are using their credit cards to buy food, medicines, gasoline and everything else, and like the US Government, they are barely making payment on the interest on that debt.

loril
Here is another "average person" checking in. This is the worst economy of my life, period. Two things people like Steve-O do not seem to register:

1. Your money does not go very far these days. Salaries are flat and the cost of basic living is steeply rising (at least in my "reality based world")

2. People have no long term confidence. Job security is nil. Nobody knows where the hell they will be one year from today, let alone five.

Psychologically this combines to freak people out...

prainva
Another Average American here. I work at a big-box retailer making 1/3 of what I made in IT before I got laid off in my late 40's. I pay 15% of my take-home pay for health insurance for just myself. I have a pre-cancerous prostate so I can't risk changing jobs with a pre-existing condition. So I am stuck in a low-paying job, eating into my savings every single month. I would GLADLY do what the Repugs always say to do - just get a better job. If I could find one. It burns me up when I hear people who have NO IDEA what it is like to struggle and juggle to get by saying that this is a strong economy. Yes, new jobs have been created, but if you keep replacing $20/hour jobs with $8/hour jobs...

[Stevelagain]

Kerry lost the "we are in a depression" arguement in the last election. There he was, in an economy that was steadily growing and about to put on hundreds of thousands of jobs and claiming we were in a depression. The liberal mainstream press was preaching his message. The public was even believing it...but only to a certain point.

People knew they were doing ok, but believed somewhere we must have a bad economy because John kerry was telling them we were. But in the end, the fake depression lost out to "I'm really doing ok". And we are still doing ok and that's why pumping a depression that isn't wont work.

You see, most of us don't have adjustable loans, most of us aren't losing our jobs, our house, or going bankrupt. In fact, most of us are doing pretty gosh darn well and so lying to us about the economy may make people feel a bit worse about it, but it wont really buy their votes, as John Kerry found out.

What you need is a really bad economy....then you would have an issue.

But your "The econmoy is terrible line" isn't true....so that's why it's not an issue. What is an issue? Security, terrorism, the improving situation in Iraq, Massive illegal immmigration supported by "progressives".

[ExRepublican]

Great post. Facts. Important.

and yet. 2 pages of comments.

Britney Spears getting a breast job? 98 1/2 pages.

Makes sense to me.

[BUSHsurvivor]

"Obviously the chances of a recession are higher now than they were a year ago, but we still think it's less than 50-50," Hubbard said on CNBC television on Tuesday.

"We obviously have problems in the housing sector and we have problems in the financial sector, but ... real America is doing just fine," he said.

http://news.yahoo.com/s/nm/20071128/pl_nm/bush_economy_hubbard_dc;_ylt=AtHNQxxZKVV6ySEXmzgSUUKs0NUE

.....

REAL AMERICA?

[Robert59]

The reason they don't discuss is it boils down to the simple fact the economy is still growing meaning we're technically not in a recession.

And Wall Street's and the Fed's strategy is to stave off the recession until after the election. Look at the chicanery they are doing with the stock market. What will the fed lowing the prime do for a homeowner with a subprime about to reset? At best it will buy him a little time, but the reality is he's living in a grossly overvalued house. The market will eventually correct this aberration.

And you say it's not smart to talk spending restraint when the economy is shrinking. Get used to it as it's the new reality. We spent 5 trillion dollars putting off the last recession and we can't afford to do the same this time.

[dgscol]

A free economy is a disaster! Lookout - Depression Ahead!

It makes sense, in a oil sensitive world situation, to make airplanes from parts obtained from all over the world. Its nice that we all share isn't it? But is it economical? is it a secure way to do business? Is it reliable? Ought not this and many other thngs be better regulated?

[vippy]

I never understood when the Middle Class is driving the economy and you don't pay them,
e.g. living wages, fulltime jobs, etc. then
a collapse is imminent. Surely, someone thought of that but kept stuffing their pockets
while the going was good. Even today most
Republicans still are convinced they got a tax cut from Bush.

[Sandy23]

I saw Jim Kramer on Morning Joe this morning, raving about job creation and as long as we are creating jobs we will survive the credit and oil situation. My question is what kind of jobs are being created, what are the salaries, are they paying enough to allow people in this country to earn a living wage? Or are they jobs which keep people in poverty, even while working 40hrs?

[bleek]

Yes, the economy is weakening and it's tough for most everyone.

And yes, there are some obvious things that could be done to incrementally improve it that would benefit nearly everyone in the U.S.

Example: Lift the tariff on Ethanol imported from Brazil. They have a surplus of fuel, we're in a fuel crunch. A fuel shortage may be the harbinger of recession or worse.

More available fuel would provide a boost to the poor economy as well as influence prices at the pump down.

And yes, I realize that ethanol is not a great long-term alternative.

Tariffs are economic poison in general and never benefit the population as a whole. The tariff on Brazil is not only a give-away to the big oil companies, it also is a direct violation of the 'free-trade' policies that ostensibly substitute for religion in D.C.

So let's find out who is a candidate of the people and who is just another stooge (as well as a hypocrite since none but RPaul willing to speak against free trade) by asking each if they are willing to abolish this tariff.

I'm not holding my breath for anyone to ask that question, however. It's the type of question that can get you black-balled for life as a journalist in this country.

So pro journalists might want to stick with the softballs and leave this question to the people that are willing to get tazered and prosecuted for a brief moment of free speech. Of course, those folks don't get their question answered, either. But sometimes the question itself gets heard.

[esquire07]

The Economy ? Try Bankruptcy and Depresion.

Soon the Empire will fall hard. Murder and killing of other societies for their oil will come back to haunt the US.

The US is DOOMED - no different than Rome.

Martial law, poverty, killing of Americans in the streets by Blackwater type "security" firms. That is the future of the United States.

An Economy based on killing, torture and War cannot survive.

[curiousasheck]

Americans have been totally screwed over. Pensions down the tubes, trusts, social security, all worthless paper now. Inflation, gasoline and energy and food costs, the basics what have you going through the roof. The health insurance rackets. Rather then being in a position to contribute towards a better society or just plain retire with some basic security now people are going to be slaves until they drop dead right in their tracks just to keep a roof over their head and food in the house.

Not ONE SINGLE CANDIDATE has the grit to address it.

NOT ONE!

The only question anyone should be asking every last single one of these candidates is,

How are you going save our country from Bankruptcy?

Let the spin begin!

[Progress08]

Iraq is the economy. Deficit spending to the tune of a trillion dollars. Everytime some jackass like Thompson opens his mouth remind him of just how fucked our children are going to because they'll still be paying for this mess.

[duggie]

You know, the American Middle Class has been bought off by cheap consumer goods, cheap electricty, cheap water, cheap gasoline - life on the cheap. Now the consequences: bankruptcy, recession, war, the blame game.

The US economy is based on the rodent cage model; consumers are told to keep that little hamster wheel spinning - that if we stop, the economy will suffer. Corporations have made sure to secure a supply of hamsters overseas: the American consumer is being replaced by the global consumer, so stop running, Hamsters! We've been replaced and abandoned.

[johnqeniac]

Iraq! Iraq! Iraq!!
Do not let the bastards avoid Iraq. It's more than a billion dollars a day for that worthless Occupation ('not a war, it's an Occupation).
Iraq! Iraq!! Iraq!!