SHOCKING BUT TRUE
TO SOME... GOOD NEWS IS BAD NEWS
January 20, 2008
To listen to some of our noted national legislative leaders and Presidential hopefuls as well as many in the drive-by media, all is doom and gloom. It seems to some, that good news is bad news and managing the news is the way around it. From these folks, we hear a continuous diatribe of pessimism and crisis. "Everything is in crisis," they say. And yet, the troop surge in Iraq is significantly improving the military situation and America remains safe from terrorists' attacks. And most encouragingly, the economy is out- performing expectations. Point in fact, the Nation Review economic report at the end of the year 2007, indicates growth in consumer spending, growth in job creation, growth in small businesses, and growth in savings and investments. And it is this growth that is the main spring and life blood of our American economy.
The year 2007 produced 3 percent growth in real GDP, nearly 3 percent growth in consumer spending, and over 3 percent growth in after-tax, inflation-adjusted incomes. This growing economy has just "celebrated" its sixth anniversary. It is extraordinary. Jobs are an ominous sign of the economy. The latest jobs report says unemployment is slightly up but America is working, with 94,000 new corporate payrolls in November and a rolling average of 103,000 job increases for the past three months.
And there is further good news, jobs are paying more. Worker wages are rising 3.8 percent over the past year, which is a full percentage point ahead of inflation. In fact, growth in total compensation for the entire workforce is rising at a 3.3 percent pace after inflation. Reports show that this is the best performance in seven years. Americans are working more expeditiously and smarter. We have experienced the fastest growth in wages and the number of wage earners ever. This has been the fastest rate for employment and far exceeds what was experienced at anytime during the 1990's. It means extra pay in the pockets of the typical family wage earner. The "doom and gloomers" fail to report that tax revenues are significantly higher than anticpated, thus cutting the budget deficits far more deeply than was forecast. But then, to some in the news media... good news is bad news; for their agenda is driven by bad news in as much their hope is to fix peoples' lives according to their "form of fixing."
And there is more. U.S productivity surged 6.3 percent in the third quarter, its best pace in four years. A large rise in output per person is good for profits, growth, and low inflation. University of Michigan economist states that household wealth has increased 43 percent in the past five years. U.S. household net worth just scored a new record high of $58.6 trillion. This kind of healthy growth pattern brings vibrancy to the economy.
With all the pessimistic doom and gloom as expressed by many in the mainstream media and certain liberal politicos, a recent Princeton University Gallup Poll suggests otherwise. It is fascinating to note that 84 percent of Americans say they are satisfied with the way things are going in their personal life. This is in contrast to a 73 percent figure in 1979. In a recent Princton University Gallup Poll released in December, it is found that 8 in 10 Americans say that they are satisfied with their personal lives including a solid majority who say they are "very satisfied." Doom and gloom? The facts speak for themselves.
The media has been overly pessimistic as have many politicians. The U.S. economy has appeared to have withstood the sub-prime lending crisis and significant increase in fuel costs. This is a significant achievement as the dollar has slumped relative to oil and other major currencies. It is critical to note that the dollar has declined because of Federal Reserve policy which has pursued "easy money" to mitigate the financial and oil crisis. In spite of these odds, the U.S. economy has exceeded expectations.
There are many wise individuals such as Joel Hamlet who claim that such statistics conceal inequity and neglect such things as the community core' s which have long been in decline. Such arguments have merit as "true wealth" has not grown at a significant pace to exceed the debt obligations and taxes. "True wealth" would be largely intergenerational wealth which will be passed on through generations. One could assist in the creation of true wealth by eliminating taxes on savings for lower and middle income individuals so to attempt to enhance the distribution of the wealth. We are concerned about equity in order to promote a sound social order and depth to such statistics. Also, promoting policies of competitive taxes and zoning would significantly improve the core of many of our declining communities. WE believe that the economy is healthy and strong but could well have better distribution based on sound foresight and policy.
It is time for some of our misguided political candidates and individuals to begin to listen to the people. There are those politicians who call for the need to grow government, pass more regulations, take over private property for public use, and increase the size and breath of government, in order to "improve the economy and improve satisfaction of American life." They call for nationalized medicine, economic collectivization, increased socialized entitlements, increase taxes, and increase spending...thus moving the Country closer to a bureaucratic socialized state of the nation. Why have they not called for energy independence, cutting taxes, decreasing spending, controlling the deficit, and balancing the budget and thus fortifying the State of the Union? Ronald Reagan had it right, "You can't be for big government, big taxes, and big bureaucracy and still be for the little guy." That is how we see it FROM OUR PERSPECTIVE.