Economic Doom and Gloom? Look at the Facts
August 6, 2006
There are those sources in the so called "main stream media" and the so-called company of "political extremist" that would have us believe that all is doom and gloom. And they seem to relish in that mentality. In fact, the current economic boom seems to get little respect or coverage from some of the media sources or even found in the rhetoric expressed by some politicians. But look at the facts and documented numbers and draw your own conclusions.
The labor report shows remarkable strength. The unemployment rate stayed at the comparatively phenomenally low figure of 4.6 percent. There were 387,000 new jobs created in June after increasing by 288,999 in May. At the same time, the increase in total hours worked in June was at the equivalent of a half-million new jobs. And the number of Americans who have been without a job for more than six months sank by 217,000 in June to its lowest level in more than five years. The average jobless spell is now less than six weeks. Comparatively, these figures are extraordinary.
At the same time, the "doom and gloom" reporters and commentators fail to report that tax revenues are significantly higher than anticipated, cutting the budget deficit far more deeply than was forecast. In fact, Brian Riedl noted economist states, "overall tax revenues are growing at the fastest pace in 40 years." In fact, since the tax cuts were fully accelerated in 2003, tax receipts have risen by over 34.6 percent. Point in fact, one way to shrink the deficit is to boost economic growth by cutting tax rates on work, investment and savings and that is precisely the defining situation today. More Americans are working and paying taxes, more investors have had capital gains from the sale of assets and more businesses have had higher earnings thus have paid more into the tax coffers. So much for those who spread gloom and who call for an increase in taxes and for the elimination of the legislative tax cuts.
In short, the American economy is strong and vibrant. Particularly in light of the fact that the vast majority of Americans have faced with dignity horrific natural disasters such as Katrina, the terrors of 9/11 and the destruction of the World Trade Center, huge defense costs, excessive discretionary spending and runaway entitlements. Where else but in America with its free enterprise system can one face such demands and yet show such remarkable growth and surging economic vibrancy. Thanks to the rank and file of the American people.
Constant predictions of doom and gloom in a time of growth reminds us of a comment by Ben Franklin made in 1785. In his words "I saw in the public papers frequent complaints of hard times, deadness of trade, and scarcity of money. It is always in the power of a small number to make a great glamour. But let us take a cool view of the state of affairs, and perhaps the prospect will appear less gloomy." Franklin died at the age of 84, leaving a fortune. He was an optimist in the early stages of the American economic miracle. He predicted "America will become a great country with good laws, small government and with all the liberties civil and religious that reasonable people could wish for." And you know Benjamin Franklin knew the power of optimism and so should we. In a word, today the US economy is "booming" and running on all cylinders. So much for the doom and "gloomers." That is how we see it FROM OUR PERSPECTIVE.