Wow What A Great GOP Economy

12/02/2005

by Paul Munnis
December 2, 2005

Before Mr. Bush sprains an arm patting himself on the back concerning the U.S. economy he had better check the news reports just a little more carefully.

We have a situation of pent-up demand for goods being expressed as Christmas purchases rather than as ordinary monthly purchases. China is meeting the demand taking far more money out of the U.S. economy than it’s putting back in. The deficit continues to rise under the GOP Congress who has behaved irresponsibly in terms of fiscal management discipline and pork fat for themselves.

We have GM laying-off many workers (over 37,0000) while closing 12 plants.

Ford is also laying-off workers and asking for relief from pension and health care insurance costs.

NW Airlines and Delta are dumping workers and healthcare and pensions.

Then Merk is getting ready to bite the dust too.

And the list goes on and on, even as over 10 million more jobs have left America for India, China, and other points east.

We just got a 10.7% average property tax in MN from a “No New Taxes,” GOP governor.

The stock market is trying to reach 11,000 on the Dow, a point it has not seen since the year 2000. It is scraping along, it might make it, but not because the companies are all that great or doing so wonderful. Mainly it’s because layoffs and job cuts are making the numbers look temporarily better as charges are worked through the company books. Unless companies can increase revenues then they are on the shoals. Companies with rising revenues seem to be mainly in the energy or energy related sectors.

The housing boom is slowing and the cost of capital is rising which means that investment will slow and it’s investment that creates jobs.

Illegal alien workers, mostly from Mexico, are displacing American workers from jobs that Mr. Bush says: “Americans don’t want.” He’s sure wrong about that one.

The Bush economy is still sick, the middle class is still declining, as we morph into a two class society. The GOP economic model is still a disaster for America.

Retailers are closing their doors and are hurting. If this Christmas shopping season doesn’t do the job for them then many will close up shops that have been in biz for years.

One of the culprits is healthcare costs, another is a desire to shed the responsibility to pay pensions; both are contracts that employers accept and now want to renege upon.

Oh, did we mention that when GI’s return from Iraq they will want jobs and in spite of the Soldiers and Sailors Act they may find their old company no longer exists anymore to take them back. When they do come back they will bump somebody else and so no matter how you cut it this means an increase in unemployment lies ahead.

Then there are the falling wages in terms of purchasing power caused by wage freezes. Even as worker wages buy less goods and services energy prices are rising and inflation is increasing. The cost of living is up but income is down. Executive bonuses are up and their tax rate is down. Performance bonuses for workers are down while their tax rates are up.

Much of the economy is being driven underground and off the books. That means lost taxes and revenues to State and Local government who will have to increase taxes even more.

The last five years under Bush has been awful and the next three years looks even worse.

The unemployed can’t even get tomatoes to throw at Mr. Bush when he comes to MN to stomp for GOP candidates. The tomato crop from Mexico is lagging and they cost too much to waste anyhow.

Let’s hear it for the Bush economy and if you are really happy then vote for the GOP in 2006. They need all the help they can get.

If you are one of the 70% of people unhappy with the Bush economic performance then why not attend a DFL Caucus meeting the third Wednesday of each month at the Rochester Government Center at 7pm if you live in Olmsted or Dodge County; or else attend one in your home town if you are not an Olmsted County resident. It’s getting crowded there now as the seats fill up fast. Come early and bring your own popcorn.