Saturday, January 28, 2006

Semper Fi- The US economy

Only once in the history of the US have we entered a depression. Many times, we have entered recessions. But the outcome of these is always the same: The US comes out stronger, bigger, and more powerful then ever before. It's remarkable really, how freedom works that way. Recently, we were in a recession. The tax raises and increased regulations of the Clinton years finally were able to reach out and grab the Reagan economy, and we entered a recession as Clinton and his staffers were taking the 'W's off the White House keyboards. Bush took office, and cut taxes for the workers and the corporations. The result? A quick exit from a recession. Then, September 11 hit, and the economy took another dive. What helped turn us Back into Black? General Motors, and Bush and the republican congress sustaining the tax cuts, rather then creating another 'New Deal'.

So what's the story now?
- Size of the US Economy: $12.5 trillion.
- Unemployment rate: 4.9%. (Germany, by contrast was at 12.6% last year)
- Lower Unemployment rate then in the 70's, the 80's, and the 90's.
- The US averaged a net increase of 200,000 jobs each month in 2005.
- Effect of the Bush Tax Cuts: 4.5 million more workers then in March of '03
- Hourly Wages increased 3.1% over the year.
- Total American household networth: $51 trillion.
- Effect of Bush Tax cuts: That is nearly double the total worth in 1995.
- Median Household worth: $100,000
- Economic Growth: 3.5-4%, nearly double that of Europe. Astounding, considering that there were 8 interest hikes by the Federal Reserve, 3 devastating hurricanes, record oil prices and a constant barrage of negativity by the media.
- Inflation is a trifling 2.4%, one of the lowest rates in the civilized world.
- The Dow passed 11,000 this month, nearing the record high of 11, 750 in 2000.

And the democrats response? Denial.
"The American dream is slipping further from their[Americans] grasp, and they know the reality is that this economy is not delivering for middle-class families. Middle-class Americans paychecks are flat or dropping, while health care costs continue to rise and home heating costs are skyrocketing..."
Nancy Pelosi, (D, CA).

The Sky is blue, the sun is shining, and the US is again surging into the lead of the world economy.
Have a nice day.


Dyspraxic Fundamentalist said...

Shame about Britain, though. Our economy is not looking good.

Palm boy said...

Well, the unemployment rate isn't that bad. But the effects of the 'nanny' government are pretty bad, and being part of the EU is pretty harmful also.

Jim said...

Those are all great signs, the only drawback I see being the staggering debt and back to back deficits.

That will unfortunately have a dramatic effect should it not be reversed.

Your point is well taken however that the Dems will complain about anything they can.

Palm boy said...

Deficit: There have only been 4 years out of the last 50 when the US has not been running a deficit. As of now, 8% of the federal budget is dedicated twoard paying down the debt.

Also, the net worth of the average household increased, mostly because of rising assets, which off sets the amount of debt.

DAWEED said...

Wow the media cant put this info out or else they would be shooting themselves in the foot.