Analysis: Iraq, gas prices obscure economic news

[sabra]

http://www.startribune.com/stories/587/5559009.html

Analysis: Iraq, gas prices obscure economic news
Tom Raum, Associated Press

WASHINGTON, D.C. -- The war in Iraq and the soaring price of gasoline are drowning out a succession of positive reports on the economy, putting President Bush on the defensive at a time when he could be basking in good economic news.

Despite months of economic growth, tame inflation, resurgent job growth and an unemployment rate near a four-year low, public approval of Bush's handling of the economy is at the lowest levels of his presidency.

That has left his supporters perplexed over why Bush hasn't gotten more credit for the improving economy.

But analysts suggest a host of reasons -- including anxiety over terrorism and the Iraq war, soaring gasoline prices and high levels of mortgage debt in an environment of increasing interest rates.

[Zorra]

1. Maybe the measurements of economic indicators have been so fudged

by republicans in order to make themselves look good that these indicators no longer reflect real economic conditions experienced by real people.

Prices keep going up while wages basically stagnate, and many of our better paying jobs have been outsourced. Most of the new jobs that have been created since Bu*h was selected have been low paying service jobs.

From the of view of the "average working American", in real time, the economy does not appear to be doing well at all.

[wishlist]

3. Yes, inflation and unemployment numbers don't seem to reflect reality

Costs are shockingly higher over the past year, no matter what they try to tell us about low inflation numbers.

[wishlist]

2. The 'good economy' is being financed by record consumer debt

People don't feel good knowing that they can barely cover the bills when they come due each month and cannot get out of debt or save for retirement with the high cost of housing, fuel and health care etc.

[nyhuskyfan]

4. When you dig a huge hole...

How much credit should you get for coming partway back, but still standing far below where you started?

Economies are cyclical, but this particular recovery has been tame, especially compared to the massive debt we've built up.

[teryang]

5. Do they?

What is the huge discrepancy between the propaganda machines version of the "good economy" and the public perception of their own experiences.

The standard of living in the US has been declining for over thirty years. The inequity in the distribution of income, wealth and taxes has reached a level not seen since 1928. The corporate rich have tapped the treasury and the laws of the nation for their own enrichment and shifted production to foreign markets. The tax burden of the super rich and corporations has been shifted to the middle class. The families of ordinary workers are being systematically destroyed.

Production has exported to foreign countries. We don't produce anything but we consume everything. It is paid for with debt as wages and salaries decline in real terms and taxes on the middle class increase. Published unemployment rates are simply false. Layoffs at major corporations continue unabated. Consumer prices are exploding and CPI figures are systematically falsified.

[The Traveler]

6. The average American

is not really experiencing much of this economic good news. That might have something to do with it.