Discussion in 'The NF Café' started by Razgriez, Oct 17, 2006.
I also liked this response after the report.
What is highlighted in bold anyways.
I normally dont advocate to much credit to the president for the current Economic state... but Bush did seam to find a very good replacement for Alan Greenspan in Ben Bernanke.
I've done some research into the subject of the Bush tax cuts but I never finished looking into their effects on the economy. Do you think that the tax cuts helped make the economy better?
What is this economoy you speak of?
The Economy, looks to be doing pretty good according to leading indicators.
I recall that in the Mid 90's the catchphrase was "It's the economy, stupid." The Fed has been doing a sterling job, and consumer optimism has been pretty high. Not to mention that military actions are generally accompanied by an increase in GDP.
If Bush had been in for just 4 years, I'd credit Clinton for the economy, but as it is, he does deserve some credit for it as the US President has a very powerful effect on Consumers.
With the markets in record highs it is certainly looking good. However the national debt tends to throw a monkey wrench into the whole thing. If that issue is solved, the American economy would be in far better shape (and indeed at the moment it isn't even "bad").
I do think tax-cuts have helped but the main driving factor behind the economy has been the consumer credit financing it (household debt is now 108% above income?). Also many other factors including historicly, relatively low interest rates, lower inflation from imports, and resulting productivity gains have influenced the economy. The housing market and stock market appreiciation has supported this economic run and we will see if there is a fifth year of the bull. Also, I think it has been in the best interests of foreign governments/bondholders to support U.S. current account deficeit by steadfastly buying U.S. treasuries and corporate bonds.
The economy goes up and down every so many years, its normal.
This is, of course, complete bullshit. When the economy fails, blame the President, but when it surges, credit the people? Blatant anti-Bush bias. After the ridiculous statement that the people should get the credit, it just uses a bunch of vague attacks against the administration that don't mean anything and aren't supported at all by data such as the resurgence in the economy.
The government is responsible for influencing business and consumer decisions (note that businesses' decisions are far more important than consumers'), and it takes a lot of planning to get things right with the economy (fiscal policy takes up to 2 years to have any effect). Give some credit where it's due. Bush is not bad with the economy at all.
Yay! Finally, some good news for once.
The huge warning signs are still there. A huge trade deficit. Huge budget deficit adding to the huge levels of foreign debt. Huge levels of consumer debt. No matter that the economy is growing now -- how likely is it to remain this way? You can borrow money (both the government and people) to maintain your lifestyle only for so long.
There will need to be a serious correction. Belt tightening on the part of government and consumers.
Of course, no one man deserves credit or blame for any country's economic successes or failures. Everyone who takes part in it influences things to a one degree or another.
all we have is numbers. i'll post mine tommorow
the tax cuts are good for the short term run but overall they are going to hinder our economic push in the long term, the trade deficeit is a major downfall right now in the US economy, but what is really screwing us is the national debt, i'm more worried about that then anything, we give our debt to countries such as china and japan for money that we need, but once we can pay the interest rates of about 1.7billion a year then that's when the economy will go into the shitter, overall i think bush should not have issued the tax cuts, and used that money to help with the national debt, but hey, i'm just a business major who studies this stuff all the time what do i know?
no the economy is doing rather well right now seeing that the last two times the Fed met they kept interest rates right where its at and interest rates is a great way to tell how the economy is doing so that means the economy is exactly where the Fed wants it to be
Wait till after the november elections when gas prices go back up, then ask middle class america "How do you feel the economy is doing?". Sorry but majority of middle class america may differ in opinion, nation debt will cripple the economy, topped with unchanging minimum wages and floods of illegals providing cheap labor...
Make a save of those "numbers" about the economy because bush's damage will catch up eventually and put a quick end to them.
You are steadfast in your hate. Clearly you will not be deterred.
...Eh, we were bantering about this in Macroeconomics the other day, and the general consensus was that on strictly positive economic terms, the economy is doing quite well either by Classical terms, or Keynesian terms.
Once you start adding normative measures, you can basically do what you like with it. And gas prices aren't something to worry about in November, as the recent high gas prices caused a production GLUT that's going to be around for a while.
Ummm.... we have had a National debt in the hundreds of billions for a very long time, i dont see what everyone if freaking out about that for.
The Trade Deficet is the only thing really doing poorly ATM, and that is more the general consumers fault then the government (but both do effect it)
it depends, it is sometimes good, but then it drops....it happens
Ah, the US economy. That article seemed to be full of good news, but I didn't see a sufficient argument on how the foreign debt (bought by China) is going to be balanced out in this economic growth that suddenly appears. I prefer the Economist on this kind of "summarising" a country's economic status, but this part caught my attention:
"At this pace, Bush will be way ahead of his promise to slash the deficit in half by the end of his second term. The reason for the deficit?s speedier decline: lower tax rates that led to much stronger economic growth, higher employment, and a modest brake on discretationary spending increases.
These have been rough times for our country, what with the war on terror, disastrous hurricanes, sky-high oil prices, wars in Afghanistan and Iraq against terrorist forces. But the American economy has proven to be resiliant, relentless and fundamentally on healthy ground.
With gasoline prices falling to near $2 a gallon, unemployment dropping to 4.6 percent, jobless benefit claims declining, and with U.S. automakers reporting nearly 13 milion autos and light trucks were produced in North America in the month of September, Bush and the Republicans deserve a lot more credit
for helping to bring all this about."