Great editorial today from New York Times' columnist David Brooks:

A Reality-based Economy
(requires signing up...or you can read the entire article here )

Some highlights:

Quote:If you’ve paid attention to the presidential campaign, you’ve heard the neopopulist story line. C.E.O.’s are seeing their incomes skyrocket while the middle class gets squeezed. The tides of globalization work against average Americans while most of the benefits go to the top 1 percent.

This story is not entirely wrong, but it is incredibly simple-minded. To believe it, you have to suppress a whole string of complicating facts...

...after a lag, average wages are rising sharply. Real average wages rose by 2 percent in 2006, the second fastest rise in 30 years...

...according to the Congressional Budget Office, earnings for the poorest fifth of Americans are also on the increase. As Ron Haskins of the Brookings Institution noted recently in The Washington Post, between 1991 and 2005, “the bottom fifth increased its earnings by 80 percent, compared with around 50 percent for the highest-income group and around 20 percent for each of the other three groups...”

...recent rises in inequality have less to do with the grinding unfairness of globalization than with the reality that the market increasingly rewards education and hard work.

A few years ago, the rewards for people earning college degrees seemed to flatten out. But more recent data from the Bureau of Labor Statistics suggests that the education premium is again on the rise...

...inequality is also rising in part because people up the income scale work longer hours. In 1965, less educated Americans and more educated Americans worked the same number of hours a week. But today, many highly educated people work like dogs while those down the income scale have seen their leisure time increase by a phenomenal 14 hours a week...

...it’s not at all clear that the big winners in this economy are self-dealing corporate greedheads who are bilking shareholders. A study by Steven N. Kaplan and Joshua Rauh finds that it’s not corporate honchos who are filling up the ranks of the filthy rich. It’s hedge fund managers. Or, as Kaplan and Rauh put it, “the top 25 hedge fund managers combined appear to have earned more than all 500 S.&P. 500 C.E.O.’s combined.” The hedge fund guys are profiting not because there’s been a shift in social norms favoring the megarich. It’s just that a few superstars are now handling so much capital...

...we’re in the middle of one of the greatest economic eras ever. Global poverty has declined at astounding rates. Globalization boosts each American household’s income by about $10,000 a year. The U.S. economy, despite all the bad-mouthing, is chugging along. Thanks to all the growth, tax revenues are at 18.8 percent of G.D.P., higher than the historical average. The deficit is down to about 1.5 percent of G.D.P., below the historical average...

How dare annoying things like facts get in the way of the socialist/populist agenda!

Yeah, the economy's doing fine.

Except for the fact that the stock market dropped 300 points yesterday, and is down 200 more points today.

the other Greg Childers Wrote:Yeah, the economy's doing fine.

Except for the fact that the stock market dropped 300 points yesterday, and is down 200 more points today.

Where were you when it crossed 14k? Oh yeah that's right, that doesn't fit with your party line so you just ignore it.

The Dow drops like this after monster gains all the time. It's not a reflection of the overall economy. For the year it's up almost 11%.

GDP was higher than expected, that's a solid indicator the economy is strong. It also means that the Fed could raise interest rates again, which sends the market south.

the other Greg Childers Wrote:Yeah, the economy's doing fine.

Except for the fact that the stock market dropped 300 points yesterday, and is down 200 more points today.

Spoken like a person who has no understanding of economics. I would think you would get tired of spewing stupid comments, but they just keep coming.

the other Greg Childers Wrote:Yeah, the economy's doing fine.

Except for the fact that the stock market dropped 300 points yesterday, and is down 200 more points today.

Congratulations. That was, without a doubt, one of the stupidest and least informed posts I've ever read.

it does sound like the economy is doing very well....unfortunately, i havent seen any change. i know im just one guy, but my economy hasnt improved. ok, im done venting.

aTxTIGER Wrote:it does sound like the economy is doing very well....unfortunately, i havent seen any change. i know im just one guy, but my economy hasnt improved. ok, im done venting.

Depends on your locale. I find it hilarious how some people, not you, but some, place the entire economy at the feet of ANY president, when many times, it's local. That is, you get a government in a city that's very unfriendly to businesses, well, they are eventually going to look for greener pastures.....and take their jobs with'em. this is one of the main reasons Atlanta has grown exponentially over the past 20 years. Low taxation and restrictions, yes, some people will say Atlanta is high, but compare it with a northern city of the same size.

RebelKev Wrote:

aTxTIGER Wrote:it does sound like the economy is doing very well....unfortunately, i havent seen any change. i know im just one guy, but my economy hasnt improved. ok, im done venting.

Depends on your locale. I find it hilarious how some people, not you, but some, place the entire economy at the feet of ANY president, when many times, it's local. That is, you get a government in a city that's very unfriendly to businesses, well, they are eventually going to look for greener pastures.....and take their jobs with'em. this is one of the main reasons Atlanta has grown exponentially over the past 20 years. Low taxation and restrictions, yes, some people will say Atlanta is high, but compare it with a northern city of the same size.

i live in austin, tx...one of the most business friendly cities in the country. my problem is competition....every one here is educated with experience. makes it tough.

RebelKev Wrote:

aTxTIGER Wrote:it does sound like the economy is doing very well....unfortunately, i havent seen any change. i know im just one guy, but my economy hasnt improved. ok, im done venting.

Depends on your locale. I find it hilarious how some people, not you, but some, place the entire economy at the feet of ANY president, when many times, it's local. That is, you get a government in a city that's very unfriendly to businesses, well, they are eventually going to look for greener pastures.....and take their jobs with'em. this is one of the main reasons Atlanta has grown exponentially over the past 20 years. Low taxation and restrictions, yes, some people will say Atlanta is high, but compare it with a northern city of the same size.

also, i dont blame the president for the economy...i blame past presidents on occasion, or the current president for setting up future problems for the economy. current president has very little impact on the current economy.

Interesting irony. Conservatives claim that the president has very little to do with the economy, but crow about it as if he did.

the other Greg Childers Wrote:Interesting irony. Conservatives claim that the president has very little to do with the economy, but crow about it as if he did.

Yeah, a President can place barriers in the way of economic success, or remove them. Bush removed them. Clinton, to an extent, removed them. Reagan, removed them. Carter ADDED them. Shall I go on? Other than that, it's up to the businesses and consumers to determine how an economy is going to play out.

the other Greg Childers Wrote:Interesting irony. Conservatives claim that the president has very little to do with the economy, but crow about it as if he did.

Yeah, a President can place barriers in the way of economic success, or remove them. Bush removed them. Clinton, to an extent, removed them. Reagan, removed them. Carter ADDED them. Shall I go on? Other than that, it's up to the businesses and consumers to determine how an economy is going to play out.

the other Greg Childers Wrote:Interesting irony. Conservatives claim that the president has very little to do with the economy, but crow about it as if he did.

Speaking of ironic. Dumb people claim that a drop in the stock market is a sign of a weak economy and then the next week claim that Conservatives are flip-floppers.

Of course, the economy is doing just great.........for some of the people. For the majority, however, it is not.

The unemployment rate has gone from 3.9% in December 2000 (Clinton's last full month in office) to 4.5% today. It hasn't been below that number since May 2001.

http://research.stlouisfed.org/fred2/data/UNRATE.txt

Real wages (wages that have been adjusted for inflation) have also dropped.



If you are some fat cat CEO, the economy is doing swell. If you are like the majority of Americans, it is not.

Anybody who brings up the unemployment percentage doesn't understand the meaning of that statistic, in my opinion. It is a totally flawed argument any way you look at it due to the fact that people come off that list at some point due to being on it for too long (I believe after 6 months). It also is not a true percentage of those unemployed, it is a percentage of those supposedly looking for jobs (which, once again, is biased, some people look harder than others).

The economy is moving forward right now, pretty much as good as it did under Clinton in the 90s. Tax revenues are at record levels even though they are collecting taxes at a lower percentage.

Honestly, I'm afraid of what some of the democrats will do when they get in to office. I want to see their plan for future taxes, as I think raising the taxes could really derail the growing economy at the moment. Lets cut some government spending, get in the black, and pay down our debt. Lets not raise taxes and raise spending.

the other Greg Childers Wrote:Of course, the economy is doing just great.........for some of the people. For the majority, however, it is not.

The unemployment rate has gone from 3.9% in December 2000 (Clinton's last full month in office) to 4.5% today. It hasn't been below that number since May 2001.

http://research.stlouisfed.org/fred2/data/UNRATE.txt

Real wages (wages that have been adjusted for inflation) have also dropped.



If you are some fat cat CEO, the economy is doing swell. If you are like the majority of Americans, it is not.

I am not a fat cat CEO and I can say that the economy has been very kind to me in the last six years. Greatest earning years of my life so far. Should I thank GW?? No I should thank myself for going to work.
Congratulations on posting a story about 4.5% Unemployment and spinning it as a sign of a poor economy How many countries around the world would love to have that unemployment rate?? Do you credit GW for record tax collections??
Partisans like yourself kill me. It is all GW's fault, the sky is falling, we are on the verge of economic Armageddon. I figure if I survived the economic hardships of the GW economy then I should celebrate the coming of Hillary To be sure she will have unemployment down below 3.9% and the Dow up to 20k in no time. All with surpluses of course

ShoreBuc Wrote:How many countries around the world would love to have that unemployment rate??

That is an irrelevant comparison. A fair comparison is how the economy is performing today in the United States versus how it performed in the past.

the other Greg Childers Wrote:

ShoreBuc Wrote:How many countries around the world would love to have that unemployment rate??

That is an irrelevant comparison. A fair comparison is how the economy is performing today in the United States versus how it performed in the past.

The main comparison that I care about is how is it doing for me and my family. The answer is simple...it is doing awesome. We are earning way more money then we did in the 90's.

What other time in U.S. history do you want to compare it to?? Let me guess the 90's?? We have record GDP, record home ownership, record wealth, record business ownership, record corporate profits and record tax receipts. It is the American entrepreneur that we can thank and there are people on all ends of the political spectrum that contribute to this economy. Quite frankly if times suck for you right now you need to take a long look in the mirror and ask yourself what you are doing wrong. There are opportunities all over the place and with a new booming global economy you don't have to limit yourself just to the United States. If you have some talent and are willing to move then the opportunities worldwide are unlimited.

the other Greg Childers Wrote:

ShoreBuc Wrote:How many countries around the world would love to have that unemployment rate??

That is an irrelevant comparison. A fair comparison is how the economy is performing today in the United States versus how it performed in the past.

Great idea:

Quote:...after a lag, average wages are rising sharply. Real average wages rose by 2 percent in 2006, the second fastest rise in 30 years...

...according to the Congressional Budget Office, earnings for the poorest fifth of Americans are also on the increase. As Ron Haskins of the Brookings Institution noted recently in The Washington Post, between 1991 and 2005, “the bottom fifth increased its earnings by 80 percent, compared with around 50 percent for the highest-income group and around 20 percent for each of the other three groups...”

...inequality is also rising in part because people up the income scale work longer hours. In 1965, less educated Americans and more educated Americans worked the same number of hours a week. But today, many highly educated people work like dogs while those down the income scale have seen their leisure time increase by a phenomenal 14 hours a week...

...we’re in the middle of one of the greatest economic eras ever. Global poverty has declined at astounding rates. Globalization boosts each American household’s income by about $10,000 a year. The U.S. economy, despite all the bad-mouthing, is chugging along. Thanks to all the growth, tax revenues are at 18.8 percent of G.D.P., higher than the historical average. The deficit is down to about 1.5 percent of G.D.P., below the historical average...

Every single one of those factors, from the original article, is comparative. As for unemployment, the last time that was as low as it now was 2001. Before that you have to go to 1998, and before that all the way back to 1970. There is no way for any reasonable person to conclude, aside from personal agendas, that this is a poor economy. The facts indicate otherwise...

the other Greg Childers Wrote:

ShoreBuc Wrote:How many countries around the world would love to have that unemployment rate??

That is an irrelevant comparison. A fair comparison is how the economy is performing today in the United States versus how it performed in the past.

With every post, you just dig yourself deeper. Do you know historically economists have used a 5% unemployment rate as the "Full Employment" rate? Are you really trying to make us believe that a 4.5% unemployment rate is bad?

Are you also saying that Clinton was a bad President? Because I see that in 4 out of the 8 years he was in office wages went down. He also was President during the 3 least productive years in the last 15. What exactly is the message you are trying to convey? You should be thrilled, GWB signed the increase in minimum wage. You should be getting a raise this year.