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Thursday, January 17, 2008

How do you jump-start the economy ...

When it's performance the last four years was based on phantom wealth?

The problem is this: The vast majority of people did not see their intrinsic (labor) value rise because:
  • Globalization puts the hurt on labor.
  • Productivity gains were not distributed evenly between business and labor (partly due to the weakness caused by item 1 above)
  • Unlike the 1990s, the United States has not invested in education and R&D in fields that would put the country one step ahead of the rest of the world*
Instead, asset inflation (houses) were the fuel for growth; it was unstainable and bound to reverse. So now we're supposed to "fix" the problem with a stimulus package?

*it may not have been able to even if it wante to, since technical/economic breakthroughs are hard to plan for.



5 comments

most societies are built on pyramid schemes. what we seemed to have done is master both the building and the crashing of them in a grand way?

By Anonymous jam, at 1/17/2008 6:16 PM  

When it's performance the last four years was based on phantom wealth?

Hello? Enron? Internet bubble?

Unlike the 1990s ...

when we were "investing" R&D in creating a glut of HTML and Java programmers and creating an energy trading infrastructure ...

... the United States has not invested in education and R&D in fields that would put the country one step ahead of the rest of the world

Stem cell breakthroughs began in 1998 with embryonic stem cell research. Bush's refusal to federally fund embryonic stem cell research was central to the research efforts resulting in the latest breakthrough -- using a patient's own skin cells to create stem cells. In the last four years American (and foreign) scientists have blown open a new frontier in medical science, made serious progress, and removed a serious ethical stumbling block through wise government policy.

Instead, asset inflation (houses) were the fuel for growth

The housing bubble happened because people started speculating on houses because interest rates went too low. However, unlike the Clinton Crash, when people's Enron and Internet stock turned into toilet paper, real estate still has real value.

Bush is leaving the economy in MUCH better shape than the failing house of cards Clinton left it in.

By Anonymous jms, at 1/17/2008 10:54 PM  

Yes, jms, we all know Bush's deficits aren't real, and the deficit paydowns and surpluses of the Clinton years weren't real. Yeah, and the economy now is going great. Sure.

And the idiotic stem cell claim you made... the research done in the skin cells to stem cells (done outside the US of course, because we've lost out on our former lead due to Bush) required research into embryonic stem cells to learn how they work. And it will require further embryonic stem cell research before the possibilities of that method are useable. The researchers who made that breakthrough have pointed out that Bush's ban set back the research into alternative sources of useable stem cells by several years already, which means we have years to go to get to where we could have been now, using this to actually help people. Millions will die because of Bush's ban. This you see as a good thing?

By Anonymous QrazyQat, at 1/18/2008 8:09 AM  

So now we're supposed to "fix" the problem with a stimulus package?

It's a bit like giving a heart attack patient a shot of adrenaline, isn't it?

By Anonymous e. nonee moose, at 1/18/2008 2:13 PM  

Rightly said by you, if economy come front then we have to concentrate on education side, and we should invest lot to create good educational environment.
Roadside Assistance

By Anonymous John, at 1/18/2008 9:23 PM  

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