QUOTE]First of all tell me how this recession affected you and your family[/QUOTE] Well, it significantly lowered our income. I run businesses that were hurt by the recession If folks are out of work and or don't have money, then they don't use services or buy things as much as they normally do.
With record low interest rates and low inflation fewer people were impacted by this recession than in 81-82. What people ignore is the leadership skill that got us out of that recession and the lack of leadership we have today. If you don't think a bad recession isn't impacted by high inflation, high interest rates then you are sadly mistaken and out of touch with reality. Fact is this recession is called worse by Obamabots and that claim isn't backed by actual data.
Actually, the claim is backed by actually data. Its just whether you want to pick and choose your data. Without giving a dissertation on the history of economics in this country.. let me point out a few facts. The number one fact is that the economy leading up to this recession was severely different than the economy leading up to the 81-82 recession. and that the REASON for the recession was also vastly different.
Lets take the 81-82 recession. The economy prior was vastly different. Manufacturing was extremely strong in the US at that time. Wages for lower workers and middle class workers were going up relative to inflation (in fact were a factor in driving the inflation.. because prices go up when demand increases), The US was not in a real strong global market. We had competition from the Japanese, but this was mitigated by the fact that as Japan competed with us on efficiency and quality, their wages went up as did the yen.
Agriculture, and other industries were doing fine. What happened was the inflation.. inflation caused by a growing of the economy and then the oil crisis, which drove up prices because of increased oil prices and a lax Fed monetary policy..
So here is what in a nutshell through the economy into a recession. With inflation increasing, workers began decreasing spending on products. This caused the economy to begin to tighten to some extent.. but then the FED decided that the inflation needed to be eradicated. So it raised interest rates.. again and again. And this cut business borrowing throwing the economy into a recession. Basically the Fed didn't tap on the brake, they SLAMMED on the brakes.
The upshot of this is this. The economy wasn't in a real tizzy.. it was brought into a recession by the Fed policy on interest rates.. (which you complain about.. but were ACTUALLY the result of the leadership) .. once inflation dropped, the fed decreased rates and the economy (which was fundamentally good) got back on the gas. (with some help from increased government spending and resolution of the oil situation).
Now.. contrast that with the reality of today. Real wages have not gone up in years. Global competititon, particularly from China.. a country that artificially holds its currency below the dollar, and holds wages down, has decreased our manufacturing base and depressed wages. In addition, we have illegal immigration that has created a second class worker, that also has undercut wages in America....
The reality is that the REAL economy has not been very good for at least 15 years. The basis for the economy, i.e. the middle class has shrunk and wages in the middle and lower classes have been stagnant.
Now.. what should have happened, is that the economy should have slowed, or adjusted. But instead.. our economy grew.. it grew because of the expansion of credit. So for the last 15 years.. the economy has been a bubble of credit. Not real, sustainable growth but a false economy..
That bubble culminated in the housing crisis and the Great recession.
That's why this recession is worse, that's why this economy is worse, and that's why its not going to be "fixed by leadership" as it was in 1981. Because the underpinnings of the economy are whats the problem now.
Unfortunately, guys like yourself can't see the difference. To you.. it looks all good because you have your fixed income, interest rates are low and inflation is not rampant right now. But for us businesses in the REAL economy, we understand that the basic underpinnings of the economy... i.e. lots of people with good paying stable jobs simply is not there.
Particularly in this economy. You don't have a clue what you are talking about.. do you realize that? Lets take YOU for example. Lets say you were 55 years old, former manager.. and were laid off. I have a job digging ditches... sure you say you would take the job.. BUT WHY WOULD I HIRE YOU?!?!?... There are more people than their are jobs right now. I don't need to hire you. You spent your time behind a desk, you have health issues, and as soon as a better job comes a long.. out the door you go.. so I would rather take my pick of 20 somethings that are willing to work. and there are a bunch. Heck, I just advertised for a business office manager position. 7 years ago, I got maybe 5 applicants.. This year I got 70 applicants ranging from people with 15 years working in medical offices, to certified accountants.
Well, I had my pick, and I wasn't going with a certified accountant that would have to be retrained and would be leaving as soon as another job opened up. And I wasn't going with someone that was going to ask for the top wage scale either.
And that accountant had been out of work for 16 months. And he had tried to get jobs LESSER to the position we had open.. and he had been turned down for those.
So you live in a fanatasy land.. where the economy is bad, the recovery is the worst ever, but there is a job for everyone that wants one... (reality be danged)
Not going to respond to novels and it serves no purpose in this forum to argue with someone like you. The President of the United States sets the economic policies and poor policies affect businesses, mostly the small businesses that drive the economy. More regulations, higher taxes, Obamacare, and a failed stimulus program are Obama polices that have generated what we have today. The economy will improve when he resigns or is fired and his policies reversed
And you are a great example of why this country is in trouble... and why the GOP is completely out of touch. You are simply not in reality. The economy did not go bad because of Obama, it went bad before Obama.. Taxes did not go higher than they have been (remember the BUSH TAX CUTS that Obama continued.. not to mention the stimulus was 1/3 tax cuts).. Obamacare hasn't even come about yet.. and yet you are blaming the economy on it...
The simple fact is this. The economy did not go bad because of government, and therefore government is not the answer...