Inflation and a weak dollar are concerns, but the economy isn't 'that' bad. Then again, perception can outrank reality and the press can report our way into a recession
. I'm not saying a recession isn't in our future (wait long enough and it always happens), but Its its not a forgone conclusion at this time.
But that doesn't mean election cycle spin will not make it sound bad and great all at the same time. There is NOTHING that will prevent Dems from painting an apocalyptic picture, and the Repubs from painting a rosy one. And they're both going to be wrong. Nature of the biz/beast.
National debt ceiling = farce. Its ALWAYS increased after being held hostage by one party or the other for far too long (i.e., when the repubs locked down the g'ment under Gingrich - idiots). Reason is - the ceiling doesn't keep pace with our ability to shoulder the debt. Inflation and rising tax receipts allow us to spend more - but 1:1 would be irresponsible at this time (just because we can doesn't mean we should), I'd keep it under 75% myself (currently about 65%) but would like to see it less by reducing/eliminating our Iraq expenditures
Do not repeal the tax cuts though (like more Dems want to you think is necessary) - that would be a mistake. Want a real problem? Take our currently slowing (but far from receding) economy and raise taxes - then see what happens. You may get your recession. Which is why its probably good strategy for the Dems to predict it
(oops, did I say that aloud in the company of liberals? Yep - yep I did
)
well here's the solution for sure. more borrow and spend against the future.
http://money.cnn.com/2008...tm?postversion=2008010912regarding tax cuts / inflation. isn't the most hard-hit the middle class? why not cut their taxes (every cent not taxed is certainly going to be spent. these people have no $ to save as it is anyways) and offset by raising a bit* on the true upper upper class, who spend less than a penny on the dollar made anyways.
ps, i'd argue anywhere there's a walmart opening with 400 jobs and 8000 applicants, i'd argue you're at least locally/regionally in a recession. those "jobs" should not be a step up for that many people.
pps, based on current estimates i've read (would be happy to see other sources, the ratio of debt:gdp is far closer to 70% than 65%)
Well, the lower class is usually hit the worst during inflation. Its candidates pleading for your votes that claim its the middle class. But thats no nevermind - it hurts folk either way.
But I need more details - what income level is upper upper? What is a bit*? What cut does what income level get? I'm aware of the need for some redistribution of wealth, but be careful - its not easy to find the right formula.
ps - anecdotal evidence is misleading - exceedingly small sample size, etc.
pps - when I take 9.2B in debt and divide it by 14.1B in GDP I get 65%. You have different numbers?
