As James Pethokoukis [url=http://www.usnews.com/blogs/capital-commerce/2008/12/1/recession-the-nber-makes-it-official.html]notes[/url],
[blockquote] This is highly unusual. Since WWII, the NBER had never called a dowturn that included back-to-back quarters of postive GDP growth. Until now. The economy expanded at a 0.87 percent pace in the first quarter and 2.83 percent in the second quarter. Weird.[/blockquote]
One of the interesting things leading up to this recession/depression is that for about 7 years prior, real wages declined while GDP and productivity went up. I believe that is one of the reasons for the successful class envy strategy in the recent election. If Americans are getting ahead, they don’t mind others getting ahead too. If Americans are falling behind, they tend to look at those CEOs making obscene amounts of money for running their companies into bankruptcy in an entirely new light. I wonder what will happen when the average fellow on the street realizes the effects of the Trillion Dollar bailout on his tax burden.
Higher unemployment coupled with declining real wages combined with declining home values and declining pension funds all set against the foil of CEOs walking away from bankrupt companies with multi-million dollar packages while the government uses their taxes to bail out those same companies could lead to very different and new political dynamic in America. It will also be interesting to see what the public perception will be when all the new infrastructure spending by government kicks in while taxes rise at the same time that unemployment rises at the same time wages continue to decline in the Global economy. If NAFTA and GATT survive, I think they will be in name only. I think that major reworks of these trade agreements are in order.
Sometimes, our experience is the best teacher. Gathering information for a research is a reliable source in making conclusions. It’s ridiculous to think that payday loans are responsible for the economic mess in America. Apparently, economists have marked December 2007 the “official†beginning of our current recession. The National Bureau of Economic Research (NBER) identifies top activity at this point, and the U.S economy has been deteriorating since then. The NBER describes recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.†It seems other organizations are in the same boat. Backed by the government, academics and the private sector, it’s as close to official as possible. These conclusions are based upon unemployment, incomes, industrial output and sales data. The highest point in employment and incomes was marked that December. In January, industrial output peaked and five months later, in the month of June, sales peaked. Democrats claimed this wasn’t a shock and called for an economic stimulus package. “The announcement simply makes official what we have long known: with rising costs of living, rising unemployment, record foreclosures and depleting savings, we must do more to help families make ends meet,†says Senate Majority Leader Harry Reid. So, this would mean that the proposal to ban payday loans is not a good plan. Reid highlighted that a recovery package must create more jobs, cut middle class taxes and instill confidence in the market and the people. Payday loans, and any other similar form of lending, have proven once again the magnitude of their importance in our economy. Click here for more information about Payday Loans.
As James Pethokoukis [url=http://www.usnews.com/blogs/capital-commerce/2008/12/1/recession-the-nber-makes-it-official.html]notes[/url],
[blockquote] This is highly unusual. Since WWII, the NBER had never called a dowturn that included back-to-back quarters of postive GDP growth. Until now. The economy expanded at a 0.87 percent pace in the first quarter and 2.83 percent in the second quarter. Weird.[/blockquote]
One of the interesting things leading up to this recession/depression is that for about 7 years prior, real wages declined while GDP and productivity went up. I believe that is one of the reasons for the successful class envy strategy in the recent election. If Americans are getting ahead, they don’t mind others getting ahead too. If Americans are falling behind, they tend to look at those CEOs making obscene amounts of money for running their companies into bankruptcy in an entirely new light. I wonder what will happen when the average fellow on the street realizes the effects of the Trillion Dollar bailout on his tax burden.
Higher unemployment coupled with declining real wages combined with declining home values and declining pension funds all set against the foil of CEOs walking away from bankrupt companies with multi-million dollar packages while the government uses their taxes to bail out those same companies could lead to very different and new political dynamic in America. It will also be interesting to see what the public perception will be when all the new infrastructure spending by government kicks in while taxes rise at the same time that unemployment rises at the same time wages continue to decline in the Global economy. If NAFTA and GATT survive, I think they will be in name only. I think that major reworks of these trade agreements are in order.
Sometimes, our experience is the best teacher. Gathering information for a research is a reliable source in making conclusions. It’s ridiculous to think that payday loans are responsible for the economic mess in America. Apparently, economists have marked December 2007 the “official†beginning of our current recession. The National Bureau of Economic Research (NBER) identifies top activity at this point, and the U.S economy has been deteriorating since then. The NBER describes recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.†It seems other organizations are in the same boat. Backed by the government, academics and the private sector, it’s as close to official as possible. These conclusions are based upon unemployment, incomes, industrial output and sales data. The highest point in employment and incomes was marked that December. In January, industrial output peaked and five months later, in the month of June, sales peaked. Democrats claimed this wasn’t a shock and called for an economic stimulus package. “The announcement simply makes official what we have long known: with rising costs of living, rising unemployment, record foreclosures and depleting savings, we must do more to help families make ends meet,†says Senate Majority Leader Harry Reid. So, this would mean that the proposal to ban payday loans is not a good plan. Reid highlighted that a recovery package must create more jobs, cut middle class taxes and instill confidence in the market and the people. Payday loans, and any other similar form of lending, have proven once again the magnitude of their importance in our economy. Click here for more information about Payday Loans.