America's Politically Correct Recession

Reader Comments
Back to blog

computer offset 0 population per case

johnnlafay of KY 4:26AM November 25, 2009

we have problems in america because of president bush

james of FL 11:47AM October 24, 2008

It's clear to me that we are in a recession. A recession of positive forecasting. A recession of clear thinking. A recession of liberal's ability to make it "It's the economy stupid!".
If the economy is in a slump it is, without a doubt, created by those that must have a recession in order to advance their political goals.
How many times do you have to say that things are bad and getting worse to make things go bad and get worse?
Play on the worst fears of economic hypochondria and economic sickness is what you will reap.

Michael of GA 10:49AM August 01, 2008

You forgot to mention the other half of the New America proposal -- that boosting U.S. exports is a vital part of strengthening and growing the U.S. economy:
"...Thanks to a weaker dollar and strong growth in emerging economies, exports are in fact contributing positively to U.S. economic growth for the first time in more than 15 years. Over the past two quarters, the improvement in the net exports of goods and services has contributed the equivalent of 1 percent of GDP growth on an annual basis.
However, there is a danger that this export boomlet will be cut short as other economies begin to feel the effects of weaker consumer demand in the United States. The next administration must therefore adopt an international strategy to encourage China and other large current account surplus economies -- Japan, Germany, and the large oil-exporting countries -- to expand domestic demand to offset weaker U.S. consumer growth..."
Full Disclosure: I work at the New America Foundation. But the proposal is about more than roads and wind turbines.

TKS of VA 12:23AM August 01, 2008

" don't know if we're in a recession, but it's ridiculous to suggest that you know for a fact we're not. There are many indicators suggesting we're in recession. (Seven consecutive months of job losses, hello?!?!)"
You confuse jobless claims and unemployment. We have not had seven consecutive months of falling unemployment. We also have not had seven consecutive months of jobless claims.

Chris of AZ 7:19PM July 31, 2008

Can't agree with you on your recession call, Jimmy.
In November of 2001, the NBER declared a recession began in March of 2001. This despite the fact that, at the time, there was only one negative quarter on record. We later found out that the first and third quarter of 2001 were negative. (We also found out that the third quarter of 2000 was negative, but the recession had already been dated by the time that was revised down.)
I don't know if we're in a recession, but it's ridiculous to suggest that you know for a fact we're not. There are many indicators suggesting we're in recession. (Seven consecutive months of job losses, hello?!?!)
I'd like to believe we're not in recession, but ECRI, the firm with the best track record of forecasting recessions, says there's no doubt we are. I suspect they'll be proven right again.

Steve of CA 6:28PM July 31, 2008

Of course exports matter, and of course the dollar being down does NOT mean that there is no profit; actually it makes your product a better value to countries with higher currency values. - just consider China's exports for the past 20 years and I think it becomes obvious what fiscal benefit exports can have for a local economy.

chronic.individuality of SC 3:05PM July 31, 2008

"If American goods are cheaper now since our dollar is worth less (and falling) when compared to the Euro and other world currencies, doesn't this mean we are selling more exports at a loss? Isn't selling at a profit important?"
No. At the end of the day, Americans still transact in dollars. When Americans sell goods overseas, they transact in that country's currency. However, when Americans repatriate that currency back to the States, they convert it back into dollars. So, right now, the euro relative to the dollar is stronger, meaning euros can buy more dollars. When companies convert those euros into dollars, the euro buys more dollars, thus the company has made a profit on its sale. This is why manufacturers favor a weak dollar relative to other currencies (and many of those same manufacturers are crying foul that China's currency is cheaper relative to the dollar).

Chris of AZ 2:45PM July 31, 2008

Well, if the media and politicians don't tell you you're in a recession, then you won't vote for change. I mean, I'm surprised you haven't learned this yet, James. After all, there was never a recession during the Clinton years and Jimmy Carter had no impact on oil prices (yes, I heard a liberal commentator say something like this).
So we should recognize the pattern now. GOP president: the country is going to hell in a handbasket because of foolish policies. Dem president: peace and prosperity had by all.

Chris of AZ 2:41PM July 31, 2008

"Oh, that's right—exclude exports. It's not like the ability to sell your wares to the rest of the planet is important."
If American goods are cheaper now since our dollar is worth less (and falling) when compared to the Euro and other world currencies, doesn't this mean we are selling more exports at a loss? Isn't selling at a profit important?

Joe of OR 2:40PM July 31, 2008