Krugman tells the unofficial truth about the economy

[DeepModem Mom]

Summer of Our Discontent
By PAUL KRUGMAN
Published: August 26, 2005

For the last few months there has been a running debate about the U.S. economy, more or less like this:

American families: "We're not doing very well."

Washington officials: "You're wrong - you're doing great. Here, look at these statistics!"

The administration and some political commentators seem genuinely puzzled by polls showing that Americans are unhappy about the economy. After all, they point out, numbers like the growth rate of G.D.P. look pretty good. So why aren't people cheering?

Some blame the negative halo effect of the Iraq debacle. Others complain that the news media aren't properly reporting good economic news. But when your numbers tell you that people should be feeling good, but they aren't, that means you're looking at the wrong numbers.

American families don't care about G.D.P. They care about whether jobs are available, how much those jobs pay and how that pay compares with the cost of living. And recent G.D.P. growth has failed to produce exceptional gains in employment, while wages for most workers haven't kept up with inflation....

http://www.nytimes.com/2005/08/26/opinion/26krugman.html

[Kolesar]

1. I'm gonna miss the NYT when they start charging for all content

...in a few months.

[oscar111]

2. wages lower than when reaganomics began

... adjusted for inflation.

in fact, real wages lower than in '72, i have read.

Reaganomics is a flop . Toss reaganomics.

anyone have the graph?

PS i think they rose during Clinton, then fell again.

graph?

PS Bush budget ups hunger from 12 to now, 13, million.

bush budget throws another million out onto the street. From 3, to now 4 million/yr involved in homelessness... die at rate of 1OO,OOO / yr.

that's why folks ought to be complaining.

PS i see the GOP talking points sheet is still pushing reaganomics. Memorize the title of this reply. Because Joe Sixpack still believes in reaganomics.

[shoelace414]

3. Keys here

You may ask where economic growth is going, if it isn't showing up in wages. That's easy to answer: it's going to corporate profits, to rising health care costs and to a surge in the salaries and other compensation of executives. (Forbes reports that the combined compensation of the chief executives of America's 500 largest companies rose 54 percent last year.)

this needs to be shouted! This is important. This needs ot be the talking points in 2006.

[oscar111]

7. MEME of about 15 words needed,not five lines

of type.

great post, pls summarize it into a meme useful for talk radio.
thanks

ok, a meme might go over 15 words, but has to be fairly short. The Shorter the better.

[jayctravis]

4. The economy is good for corporations and rich people

not us common folk, and that's what counts to them.

[ProfessorGAC]

5. It's Not That I Don't Like Paul, But He's Still Missing The Boat

The people need to know that the a gov't spending $450 billion of borrowed money is propping up the GDP by over 4% nominal. If the people understood that the extra spending is the primary reason THE GDP IS GROWING, then the administration couldn't hide behind that stat.

The disconnect is simply that the average american isn't being told that the crippling deficit is all that's making this economy look like it's growing. If not for the huge deficits, it would be the worst economy since 1978.
The Professor

[newportdadde]

6. Thats good information to share.

Its just a smoke screen borrow here to throw money in bucket X because bucket X is used to source reports etc. It is all hollow.

[ProfessorGAC]

10. My Second Published Work In This Field. . .

. . .in this field was a proposal to alter the performance metrics of the macroeconomy. (1988)

For instance, i wanted to redefine "recession" in statistically valid terms, and i proposed adjusting the real GDP calculation (from the nominal) to a more mathematically valid one. I also started using a different market basket to calculate inflation using statistical inferences to fill in the gaps.

Some economists are in the same school and use some of the methods i proposed 17 years ago. Most don't. Those who don't are most commonly in gov't and are spokesman for the press. The academics know most of what makes the news is nonsense. I sure do.
The Professor

[Double T]

8. The G.D.P.is the total value of goods and services produced by a nation.

While corporations and stock holders are doing well under the bush administration, the success in revenues has come at the expense of the American worker. Outsourcing of jobs overseas, cuts in benefits, continual increases in the cost of basic necessities and stagnant wages are cause for the American worker to not feel good or happy about things. There is no reason for anyone to believe that it will get any better; in fact it will become much worse as time goes on. The lying bastards in D.C. know this, but are always trying to pull this reverse psychology crap.

[oscar111]

9. BEST MEME for all this?

i submit mine of nine words.. seee my first reply.

we need memes to win at talk radio and in carpools

seems most voters never read Krugman. If we dont boil him down to a meme, we lose.

anyone?