What the United States $12.3Trillion debts amounts to:
$40,065 per person living in USA
$770 a week for a year per person
$110 a day for a year per person
Barry Bulakites
Monday, September 13, 2010
Sunday, September 12, 2010
Monday, September 6, 2010
The 1.6% Recovery
To no one's surprise except perhaps Vice President Joe Biden's, second quarter economic growth was revised down yesterday to 1.6% from the prior estimate of 2.4%, which was down from first quarter growth of 3.7%, which was down from the 2009 fourth quarter's 5%. Economic recoveries are supposed to go in the other direction.
The downward revision was anticipated given the poor early economic reports for the third quarter, including a plunge in new home sales, mediocre manufacturing data, volatile jobless claims and even (after a healthy period) weaker corporate profits. Many economists fear that third quarter growth could be negative. Even if the economy avoids a double-dip recession, the current pace of growth is too sluggish to create many new jobs or improve middle-class living standards.
As recently as August 3, Treasury Secretary Timothy Geithner declared that this couldn't happen. "Welcome to the Recovery," he wrote, describing how the $862 billion government stimulus was still rolling out, business investment was booming, and the economy was poised for sustainable growth.
We all make mistakes, but the problem for the American people is that Mr. Geithner's blunder is conceptual. He and President Obama and their economic coterie really believe that government spending can stimulate growth by triggering private "demand," that tax rates are irrelevant to investment decisions, that waves of new regulation can be absorbed by business with little impact on costs or hiring, and that politicians can assail capitalists without having any effect on the movement of capital.
This has been the great Washington policy experiment of the last three years, and it isn't turning out too well. If prosperity were a function of government stimulus, our economy should be booming. The Fed has kept interest rates at near-zero for nearly two years, while Congress has flooded the economy with trillions of dollars in spending, loan guarantees, $8,000 tax credits for housing, "cash for clunkers," and so much more. Never before has government tried to do so much and achieved so little.
Now that the failure is becoming obvious, the liberal explanation is that things would have been worse without all of this government care and feeding. The same economists who recommended the stimulus are now producing studies, based on their Keynesian demand models, claiming that it "saved or created" millions of jobs, even as the overall economy has lost millions of jobs. The counterfactual is impossible to disprove, but the American people can see the reality with their own eyes.
The above table compares growth in the current recovery with the recovery following the recession of 1981-82, the last time the jobless rate exceeded 10%. The contrast is stark.
U.S. Treasury Secretary Timothy Geithner
Then after three quarters the recovery was in high gear. Now it is decelerating. Then tax rates were falling, interest rates were coming down and the regulatory state was in retreat. Now taxes are poised to rise sharply, interest rates can't get any lower, and federal agencies are hassling business at every turn. Then business investment was exploding. Now companies are sitting on something like $2 trillion, reluctant to take risks when they don't know what new costs government might next impose on them.
To borrow a phrase, maybe it's time for a change.
The downward revision was anticipated given the poor early economic reports for the third quarter, including a plunge in new home sales, mediocre manufacturing data, volatile jobless claims and even (after a healthy period) weaker corporate profits. Many economists fear that third quarter growth could be negative. Even if the economy avoids a double-dip recession, the current pace of growth is too sluggish to create many new jobs or improve middle-class living standards.
As recently as August 3, Treasury Secretary Timothy Geithner declared that this couldn't happen. "Welcome to the Recovery," he wrote, describing how the $862 billion government stimulus was still rolling out, business investment was booming, and the economy was poised for sustainable growth.
We all make mistakes, but the problem for the American people is that Mr. Geithner's blunder is conceptual. He and President Obama and their economic coterie really believe that government spending can stimulate growth by triggering private "demand," that tax rates are irrelevant to investment decisions, that waves of new regulation can be absorbed by business with little impact on costs or hiring, and that politicians can assail capitalists without having any effect on the movement of capital.
This has been the great Washington policy experiment of the last three years, and it isn't turning out too well. If prosperity were a function of government stimulus, our economy should be booming. The Fed has kept interest rates at near-zero for nearly two years, while Congress has flooded the economy with trillions of dollars in spending, loan guarantees, $8,000 tax credits for housing, "cash for clunkers," and so much more. Never before has government tried to do so much and achieved so little.
Now that the failure is becoming obvious, the liberal explanation is that things would have been worse without all of this government care and feeding. The same economists who recommended the stimulus are now producing studies, based on their Keynesian demand models, claiming that it "saved or created" millions of jobs, even as the overall economy has lost millions of jobs. The counterfactual is impossible to disprove, but the American people can see the reality with their own eyes.
The above table compares growth in the current recovery with the recovery following the recession of 1981-82, the last time the jobless rate exceeded 10%. The contrast is stark.
U.S. Treasury Secretary Timothy Geithner
Then after three quarters the recovery was in high gear. Now it is decelerating. Then tax rates were falling, interest rates were coming down and the regulatory state was in retreat. Now taxes are poised to rise sharply, interest rates can't get any lower, and federal agencies are hassling business at every turn. Then business investment was exploding. Now companies are sitting on something like $2 trillion, reluctant to take risks when they don't know what new costs government might next impose on them.
To borrow a phrase, maybe it's time for a change.
Saturday, September 4, 2010
We don't get it
All presidents take vacations, and all are criticized for it. It's never the right place, the right time. Ronald Reagan went to the ranch, George W. Bush to Crawford, both got knocked. Bill Clinton even poll-tested a vacation site and still was criticized. But Martha's Vineyard—elite, upscale—can't have done President Obama any good, especially following the first lady's foray in Spain. The general feeling this week was summed up by David Letterman: "He'll have plenty of time for vacations when his one term is up. Plenty of time."
The president's position is not good. The past few months have been one long loss of ground. His numbers have dipped well below 50%. Top Democrats tell Politico the House is probably lost and the Senate is in jeopardy. "Recovery summer" is coming to look like "mission accomplished." The president is losing the center.
And on top of that, he is still a mystery to a lot of people.
Actually, what is confounding is that he seems more a mystery to people now than he did when they elected him president.
The president is overexposed, yet on some level the picture is blurry. He's in your face on TV, but you still don't fully get him. People categorize him in political terms: "He's a socialist," "He's a pragmatic progressive." But beyond that disagreement, things get murky. When you think about his domestic political decisions, it's hard to tell if he's playing a higher game or a clueless game. Is he playing three-dimensional chess, or is he simply out of his depth?
Underscoring the unknowns is the continuing question about him and those around him: How did they read the public mood so well before the presidency and so poorly after? In his first 19 months on the job, the president has often focused on issues that were not the top priority of the American people. He was thinking about one thing—health care—when they were thinking about others—the general economy, deficits. He's on one subject, they're on another. He has been contradictory: I'm for the mosque, I didn't say I'm for the mosque. He's detached from the Gulf oil spill, he's all about the oil spill.
All of this strikes people, understandably, as perplexing. "I don't get what he's doing." Which becomes, in time, "I don't get who he is." In an atmosphere of such questioning they'll consider any and all possibilities, including, apparently, that he is a Muslim. Which, according to a recent Pew poll, 18% think he is. That is up from 11% in February 2009.
Liberals and the left are indignant about this, and angry. For a week all you heard from cable anchors was "PEOPLE think OBAMA is a MUSLIM. It's in the POLLS. How do you EXPLAIN it?" Every time I heard it, I'd think: Maybe it's because you keep screaming it.
Some of the reason for the relatively high number of people who believe he holds to one faith when in fact he has always said he holds to another, is the steady drumbeat of the voices arrayed against Mr. Obama, that are arrayed against any modern president, and will be against the next one too. But surely some of it is that a lot of people are just trying to figure him out. In that atmosphere they'll consider everything.
When the American people have looked at the presidents of the past few decades they could always sort of say, "I know that guy." Bill Clinton: Southern governor. Good ol' boy, drawlin', flirtin', got himself a Rhodes Scholarship. "I know that guy." George W. Bush: Texan, little rough around the edges, good family, youthful high jinks, stopped drinking, got serious. "I know that guy." Ronald Reagan was harder to peg, but you still knew him: small-town Midwesterner, moved on and up, serious about politics, humorous, patriotic. "I know that guy." Barack Obama? Sleek, cerebral, detached, an academic from Chicago by way of Hawaii and Indonesia. "You know what? I don't know that guy!"
He doesn't fit any categories. He won in 2008 by 9.5 million votes anyway because he was a break with Mr. Bush, and people assumed they'd get to know him. But his more unusual political decisions, and the sometimes contradictory and confusing nature of his leadership, haven't ameliorated or done away with his unusualness. They've heightened it.
The fact that the public doesn't fully understand or have a clear fix on the president leads to many criticisms of his leadership. One is that a leader must show and express the emotions of the people, and he's not very good at it. But I doubt people want a president who goes around emoting, and in any case it's not his job. What people really want, in part, is someone who understands their basic assumptions because, actually, he shares them. It's not "Show us you care!" it's "Be a guy I know. Be someone I get!"
The president is a person who knows how to focus and seems to have a talent for it. But again, his focus is on other things. When a president and a nation are focused together on the same things, the possibility of progress is increased. When they are focused on different things, there is more discord and tension. Mr. Obama's supporters like to compare him with Reagan: 18 months in he had difficulties in the polls too, and a recession. But Reagan was focused on what the American people were focused on: the economy, the size and role of government, the challenge of the Soviet Union. And on the eternal No. 1 issue, the economy, Reagan had a plan that seemed to make sense, in rough terms to try to cut spending and taxes, and force out inflation. People were willing to give it a try. Mr. Obama's plan, to a lot of people, does not make sense, or does not seem fully pertinent, or well-executed.
Mr. Obama seems to be a very independent person, like someone who more or less brought himself up, a child with wandering parents, and grandparents who seem to have been highly individualistic. He is focused on what individually interests him. He relies most on his own thinking. He focused on health care, seeing the higher logic. The people focused on something else. But he's always had faith in his ability to think it through.
Now he's hit a roadblock, and in November's elections he will hit another, bigger one. One wonders if he will come to reconsider his heavy reliance on his own thoughts. His predecessor did not brag about his résumé and teased himself about his lack of giant intellect, but he had utmost faith in his gut. By 2006, when he had realized he had reason to doubt even that, he flailed. The presidency has a way of winnowing you down.
The great question is what happens after November. The hope of the White House, which knows it is about to take a drubbing, is probably this: that the Republicans in Congress will devolve into a freak show, overplay their hand, lose their focus, be a little too colorful. If that meme emerges—and the media will be looking for it—the Republicans may wind up giving the president the positive definition he lacks. They could save him.
The White House must be hoping that a year from now, people will start looking at the president and saying "Hey, I do know that guy. He's the moderate
Barry Bulakites
The president's position is not good. The past few months have been one long loss of ground. His numbers have dipped well below 50%. Top Democrats tell Politico the House is probably lost and the Senate is in jeopardy. "Recovery summer" is coming to look like "mission accomplished." The president is losing the center.
And on top of that, he is still a mystery to a lot of people.
Actually, what is confounding is that he seems more a mystery to people now than he did when they elected him president.
The president is overexposed, yet on some level the picture is blurry. He's in your face on TV, but you still don't fully get him. People categorize him in political terms: "He's a socialist," "He's a pragmatic progressive." But beyond that disagreement, things get murky. When you think about his domestic political decisions, it's hard to tell if he's playing a higher game or a clueless game. Is he playing three-dimensional chess, or is he simply out of his depth?
Underscoring the unknowns is the continuing question about him and those around him: How did they read the public mood so well before the presidency and so poorly after? In his first 19 months on the job, the president has often focused on issues that were not the top priority of the American people. He was thinking about one thing—health care—when they were thinking about others—the general economy, deficits. He's on one subject, they're on another. He has been contradictory: I'm for the mosque, I didn't say I'm for the mosque. He's detached from the Gulf oil spill, he's all about the oil spill.
All of this strikes people, understandably, as perplexing. "I don't get what he's doing." Which becomes, in time, "I don't get who he is." In an atmosphere of such questioning they'll consider any and all possibilities, including, apparently, that he is a Muslim. Which, according to a recent Pew poll, 18% think he is. That is up from 11% in February 2009.
Liberals and the left are indignant about this, and angry. For a week all you heard from cable anchors was "PEOPLE think OBAMA is a MUSLIM. It's in the POLLS. How do you EXPLAIN it?" Every time I heard it, I'd think: Maybe it's because you keep screaming it.
Some of the reason for the relatively high number of people who believe he holds to one faith when in fact he has always said he holds to another, is the steady drumbeat of the voices arrayed against Mr. Obama, that are arrayed against any modern president, and will be against the next one too. But surely some of it is that a lot of people are just trying to figure him out. In that atmosphere they'll consider everything.
When the American people have looked at the presidents of the past few decades they could always sort of say, "I know that guy." Bill Clinton: Southern governor. Good ol' boy, drawlin', flirtin', got himself a Rhodes Scholarship. "I know that guy." George W. Bush: Texan, little rough around the edges, good family, youthful high jinks, stopped drinking, got serious. "I know that guy." Ronald Reagan was harder to peg, but you still knew him: small-town Midwesterner, moved on and up, serious about politics, humorous, patriotic. "I know that guy." Barack Obama? Sleek, cerebral, detached, an academic from Chicago by way of Hawaii and Indonesia. "You know what? I don't know that guy!"
He doesn't fit any categories. He won in 2008 by 9.5 million votes anyway because he was a break with Mr. Bush, and people assumed they'd get to know him. But his more unusual political decisions, and the sometimes contradictory and confusing nature of his leadership, haven't ameliorated or done away with his unusualness. They've heightened it.
The fact that the public doesn't fully understand or have a clear fix on the president leads to many criticisms of his leadership. One is that a leader must show and express the emotions of the people, and he's not very good at it. But I doubt people want a president who goes around emoting, and in any case it's not his job. What people really want, in part, is someone who understands their basic assumptions because, actually, he shares them. It's not "Show us you care!" it's "Be a guy I know. Be someone I get!"
The president is a person who knows how to focus and seems to have a talent for it. But again, his focus is on other things. When a president and a nation are focused together on the same things, the possibility of progress is increased. When they are focused on different things, there is more discord and tension. Mr. Obama's supporters like to compare him with Reagan: 18 months in he had difficulties in the polls too, and a recession. But Reagan was focused on what the American people were focused on: the economy, the size and role of government, the challenge of the Soviet Union. And on the eternal No. 1 issue, the economy, Reagan had a plan that seemed to make sense, in rough terms to try to cut spending and taxes, and force out inflation. People were willing to give it a try. Mr. Obama's plan, to a lot of people, does not make sense, or does not seem fully pertinent, or well-executed.
Mr. Obama seems to be a very independent person, like someone who more or less brought himself up, a child with wandering parents, and grandparents who seem to have been highly individualistic. He is focused on what individually interests him. He relies most on his own thinking. He focused on health care, seeing the higher logic. The people focused on something else. But he's always had faith in his ability to think it through.
Now he's hit a roadblock, and in November's elections he will hit another, bigger one. One wonders if he will come to reconsider his heavy reliance on his own thoughts. His predecessor did not brag about his résumé and teased himself about his lack of giant intellect, but he had utmost faith in his gut. By 2006, when he had realized he had reason to doubt even that, he flailed. The presidency has a way of winnowing you down.
The great question is what happens after November. The hope of the White House, which knows it is about to take a drubbing, is probably this: that the Republicans in Congress will devolve into a freak show, overplay their hand, lose their focus, be a little too colorful. If that meme emerges—and the media will be looking for it—the Republicans may wind up giving the president the positive definition he lacks. They could save him.
The White House must be hoping that a year from now, people will start looking at the president and saying "Hey, I do know that guy. He's the moderate
Barry Bulakites
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