The U.S. Economy Since 2008: Who's Better Off And Who Isn't
http://thedianerehmshow.org/shows/2012-09-10/us-economy-2008-whos-better-and-who-isnt
Employers added 96,000 jobs last month, fewer than expected, and the unemployment rate remains above 8 percent. These latest figures serve as pointed reminders of the economy’s lackluster recovery following the 2008 financial meltdown. Still, the economy has been growing since the middle of 2009, and the stock market has largely come back, but many companies are sitting on what’s been described as "piles of cash." Although many people have suffered economically in recent years, for others, especially those at the top end, it’s remained relatively comfortable. Please join us to discuss economic winners and losers of the Great Recession.
Guests
Dante Chinni
director of the Jefferson Institute's Patchwork Nation project, author of the WSJ column, "Politics Counts," online correspondent for the PBS NewsHour and author of "Our Patchwork Nation."
Betsey Stevenson
associate professor of public policy at the University of Michigan.
Martin Baily
senior fellow in economic studies at the Brookings Institution and former chair of the Council of Economic Advisers during the Clinton administration (1999-2001).
Comments
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All the tears by the Whine and Cheese crowd. Why? Do any of these folks know life in America at $7.25 an hour? Do you want fries,IS NO PRIZE !!!
How many years of "Trickle Down" economics must the United States endure? My Governor,John Kasich cut the pay of his non union office staff from $33K to $25K,in order to give $50K raises to his personal staff members.I see a coordinated effort by T-Party/Republicans to destroy whats left of labor unions. Unions that created the Middle Class.Unions that represent Middle Class values and families.How in the world can the T-Party/Republicans present themselves as a party that cares about high worker wages,when that is clearly a 'Bridge too Far'.
SO,IS AMERICA BETTER OFF WITH LOW PAYING NON UNION JOBS? NO!!!
Those who are doing well are those that actually paid attention over the past 20-30 years to the changing age demographics, life expectancies, and other events that would impact our financial conditions and then made financial choices so as not to find themselves in those bad situations later in life. I have friends, both Ds and Rs, who spent the time to invest in themselves, and have weathered the recent recession and its aftermath quite well.
I live in Ohio, too, so I can speak to what’s been done here. I applaud Gov. Kasich at his efforts to contain an out-of-control budget – balancing a $7.7B deficit left by the prior administration was no easy matter. I don’t agree with all of his decisions with these cuts but, tough times necessitate tough decisions.
Those who just sit passively by expecting the government to "take care" of them, are going to always be in a bad situation and woefully disappointed no matter who is in National or State office.
Finally, at least the Romney/Ryan plan, though admittedly risky, provides each of us the opportunity to succeed and be pro-active in our own financial futures, rather than to just sit idly by expecting the government to step in with yet another social program.
It`s scary when you compare Ohio`s economy to the nation`s economy. They are eerily similar. Former Republican Governor Bob Taft passed a series of 4 tax cuts in 2005.The first 3 went into immediate effect.They were targeted for the wealthy and corporations.They cost $8 billion,with no way to pay for them.Ohio lost 500,000 jobs as the reward.The 4th cut was to go to individuals,and NEVER came to be.
Democrat Ted Strickland was elected to repair all the damage in 2006.He too was stone walled by Republican`s control,just like Obama.Then in 2010 he was defeated by John Kasich because Kasich used the slow recovery as a weapon.
The T-Party/Republican Plan is identical everywhere.Tax cuts for the privileged going on the credit card,creating massive debt.Lower wages for workers. End all socially funded programs whenever they can`t be privatized.Then blame somebody else when their plan flops.
Gov.Kasich confiscated tax revenues (Commercial Activities Tax,and others) created for usage by Ohio`s communities. Instead, this revenue was used to fill the $8 billion hole his fellow Republicans created. Ohio`s cities must either pass new taxes,lay off teachers,cops,firemen,nurses or cut other services.In Cleveland,garbage pick up charges must now be added on.In Shaker Heigts,new higher taxes were enacted
WE SEE REAL GOOD HERE IN OHIO,JUST HOW MUCH MORE SMALL GOVERNMENT COSTS TAXPAYERS.....PAYING TWICE FOR THE SAME SERVICES IS NO BARGAIN.
No one is better off unless they directly benefited from tax payer funded Obama political stimulus dollars.
PLEASE CORRECT THE RECORD FROM LAST FRIDAY!!
Michelle Obama did not come from poverty.
"Michelle’s dad, was a pump operator at the Chicago city water plant. Back in the 70′s he was earning a salary of about $50,000 a year. That’s equivalent to $282,000 today when you adjust for inflation. Michelle’s mother, Marian Robinson, was a secretary at the Spiegel’s catalog store".
“When Barack was a senator and presidential candidate, to me he was still the guy who picked me up for our dates in a car that was so rusted out I could actually see the pavement going by in a hole in the passenger side door. He was the guy whose proudest possession was a coffee table he found in a dumpster, and whose only pair of decent shoes was a half size too small.
"Really? Back then, Obama was working for a law firm, and his mother was working in a bank. Struggling? What exactly is the Obama’s definition of struggling? Obama has written about how his family went on month-long vacations to national parks and flew there from Hawaii. Poor?"
http://theroycroftreport.com/2012/09/06/the-poor-poor-pitiful-obamas/
I grew up in Norridge Illinois a suburb bordering Chicago, I am one year older than president Obama, everyone that drove a car including myself that was more than 5 years old during the 70's and 80's had rust holes in them, the streets are white with salt for months every winter. I drove several cars with rust holes. By the way I don't see how you could see through a car door while inside if it had interior door panels.
I still want to know how Greg Ip "journalist" knows Obama wore shoes a half size too small? Come to think of it I remember buying boots that were unavailable in my size, I wanted them so much I bought them anyway. Maybe Obama and I were both walking around Chicago at the same time with very tight shoes, if I new this and a car with rust holes was a job requirement to be president I should have put this on my resume..
In 2008 I graduated from college right as the economy started to tank. I was one of those Obama supporters who believed in the message of change and hope. After 6 months of unemployment I found a job and 7 months later I was laid off from that job. Around that time in D.C. the stimulus was passed and grants were starting to be funded. I got a job working in Fort Worth, TX with a local non-profit because of those grants. I also decided to go back to school and get my master’s degree. The educational tax credits I have earned because of the President’s policies have greatly impacted my ability to work full-time at a non-profit and pay out of pocket for my higher education. With my tax credit I am able to turn around and re-invest into my next semester’s classes. I am better off then I was 4 years ago.
Yes, I'm better off, but I'm not ready to give our president credit for it. As a small business owner, I've taken drastic measures (downsized, reduced costs, increased work hours) to grow my company. I don't get (nor do I want) gov't help. Having to deal with organizations that are heavily subsidized by gov't (insurance, banks, energy, communications, transportation, etc.) has been very challenging and unfair. Sometimes I feel my competition is not others in my industry but the gov't. At some point, the gov't will have to stop subsidizing industry and let the economy play itself out or you'll have a public sector driven economy which cannot and will not survive.
I would say that I am about the same. I think if some of the actions that weren't taken I would be out of a job (I am an architect). But I have not heard anyone mention how well the stock market has done in this time frame. In January 2009 I think the Dow Jones was around or below 9000. Today it is about 13,000. Would Mitt Romney say that is worse? I think they are being disingenuous...it is just political rhetoric.
I am definitely better off than I was 4 years ago. At that time I was aspiring to begin a Doctorate Program in Physical Therapy at the University of St. Augustine, but the financial obligation was extremely daunting to say the least. The increased allowance for student financial aide has been enabled me to enroll in this program and I am now preparing to graduate with my Doctor of Physical Therapy Degree in December 2012. The Obama Administration's emphasis on funding higher education has made a direct impact on my life and very soon on the lives of the children I will be treating as a Pediatric Doctor of Physical Therapy.
Debbie Jarnagin
I am better off in that I have a better-paying private sector job vs. the public sector job I held in 2008; however, to get to that private sector job I have to commute 42 miles each way down Interstate 270 - the commute from Hades. I am also now divorced, so I'm living in a 130 year old house which needs repairs as a single parent to a college student with tuition bills. Overall, I'd say it's close to a wash.
Let me say, however, that it is not President Obama's fault that I sometimes struggle. He is working to improve the economic realities for members of the middle class such as me. It takes much longer than 4 years to pull a Country out of the mess that the previous Administration got us into. I have much more faith that the next four years will only bring more prosperity my way if President Obama is at the helm than if Romney/Ryan and their corporate cronies are elected.
An incredible amount of misinformation in so few paragraphs:
To be clear, Gov. Taft did sign HB66 which lowered income taxes across the board for all Ohio taxpayers, not just the “wealthy and corporations” as you stated. The result – state individual income tax rates were a full 21% percent lower for all taxpayers across the board in 2011 than they were in 2004. Yes, the plan was launched during the Taft administration, but it was embraced by Governor Strickland and reduced taxes throughout his term as governor. The reforms also included a gradual phase out of local property taxes on business machinery and equipment and a phase out of the state’s corporation franchise tax on profits. These taxes, which ended after 2008 and 2009, respectively, were replaced with the commercial activity tax, which imposed a much smaller burden on businesses and generated far less revenue. The 2005 tax reform plan was implemented on schedule except for one piece: The final year’s income tax cut was delayed -- only delayed -- because state leaders, with the support of major business organizations, opted to postpone it for two years in order to close the $8B budget hole (that you mentioned). That final year’s tax cut did occur this past year’s tax filing. We all received that tax cut.
Just to keep the story straight.
As self-employed true small business owners whose child has a congenital birth defect resulting in lifelong disability, we are truly better off than we were before the Affordable Care Act when we lived with the constant fear that our private insurance could drop her coverage.
Ignore the extremist trolls.
They're desparate losers.
Visualize a future episode of the Maury Povich Show.
Seated across the couches are the cream of the conservative talking heads - Rush, Beck, Hannity, O'Reilly, Cavuto, Coulter, Savage, Gaffney, Ailes, Hume, Krauthammer, Varney, four of The Five et al.
Maury brings in his large manila envelope de riguer and the crowd is agitated as always. Maury opens the envelope and makes his telling announcement:
"Folks, YOU ARE the media !!"
(..... the couches are cleared as they charge off the stage .....)
Yes, I'm better off. In late 2008, my IRA and 401K suddenly lost 40% of their value, just like that. One month. Now they're back to the level they were and then some, and I'm actually considering retirement. (In December 2008, I thought I'd have to work till I died.)
Also, I have a pre-existing condition and could not get insurance at any price at all. (Though I am employed full-time, my employer, to save costs, long ago dispensed with most benefits, as have most employers in that industry group.) But in July, I became eligible for the federal Pcip plan, and for $400 a month I have full insurance, thanks to Obamacare.
I don't see how anyone with an IRA, pension, or Romney-level investment accounts could say they were worse off than in 2008, because the stock market has almost doubled since then.
Our small business is barely existing month to month. Three similar stores have gone out of business in our small town in northern Alabama near Huntsville. We no longer take a paycheck and live on Social Security alone. So, no we are not better off. Please do not use our name since we do not want our town to be aware of our fragile financial position. Thank you.
Open up jobs for the young with early buy-outs of those nearing retirement by granting full social security benefits based on maximum benefit given at 70 years of age.
You’ve asked listeners to answer the question “are you better off than four years ago” – please ask your radio guests this morning if they think we’re "better off" now.
Remember four years ago? In September 2008, the US lost 432,000 jobs, the stock market fell 12%, we were mired in two expensive wars, the financial meltdown became too big to ignore, and the government announced it was backing up to $85 billion in loans to bail out AIG.
And then came October.
So please, let's keep asking ourselves: "Are we better off now than four years ago?" And let's start asking the media to remind people what the jobs report was from four years ago every time they call this year's reports "disappointing." Growing slowly beats the heck out of falling off the cliff quickly.
Here's an interesting conundrum:
We hear daily the rants of various self-made types who proclaim their robust individualism with glowing stories of up-from-the-dregs successes; they walked uphill both ways to and from school, through snow drifts piled above their heads; their parents (fellow travelers on the Mayflower) were never considered immigrants, of course, and were the rugged pioneers who built the country - and their Mayflower was from somewhere more glorious and worthy than the evil socialist Europe. These outstanding citizens built their own businesses and fought all the wars alone without the slightest influence from anyone else in society, and, of course, completely without the influence of any evil socialist communist over-reaching government. And, being the rugged individualists and all-knowing self-educated types they are, they planned well ahead to prevent any ill effects of the global or national economy - and avoided all effects of the downturn in 2007 and beyond. And naturally they have protected all their assets and income properly to avoid the grabby hands of Uncle Sam.
But here's the puzzle: IF they are such uberhumans........why are they complaining now? Surely they could never affected by a feckless inept government (as they so often describe it) OR by the policies of the current inept misguided all-invasive administration.
I am having trouble understanding why people at the top are the loudest voices condemning President Obama's handling of the economy. Should the question "are you better off today than you were 4 years ago?" be turned on them, as they could not credibly continue the argument. Why aren't businesses held to a standard of their responsibility in helping to build the economy if they are sitting on hoards of cash?
I've asked myself the question "Am I better off now than I was 4 years ago?" And the answer is yes.
I am a Federal government employee. In 2007, I had to short sell my house in Fairfax VA and was fortunate to walk away slightly underwater but with the shirt on my back. I lost a lot of equity in the house. From then on, I could only afford to rent. In 2008 I rented an apartment in Washington DC to be closer to work and also to cut down on the sky rocketing commuting costs from VA into the city.
Having moved into the city, I was eventually afforded the right of same-sex marriage to my partner. My life had improved from that as it was a large relief. There is an psychic/mental and to an extent a financial cost associated with not being able to marry my spouse. This cost was alleviated.
It is now 2012. I am back in a place where my credit has recovered and I am able to buy a house and move on with my life after having taken financial hits within those 4 years... but I weathered it out and know that it will get better.
Change does not occur over night and it won't occur over 4 years. People need to realize that. The prevailing feeling is that Americans feel entitled and need immediate gratification. The changes that have been made in the past four years will take time to reap benefits. Give it a decade, but maintain the continuity of this administration for another 4 years to keep the momentum moving.
Please ask your guests how they think the economy would do under some of the different tax proposals out there like:
1) The Ryan-Romeny proposal to cut or eliminate capital gains taxes
2) The Obama plan to tax the wealthy somewhat more
3) The "Fair Tax" champion by some republicans
4) The "Fair Share Tax" proposal
No.
I am not better off now than Four Years ago.
Four years ago I had a small architectural practice with three employees in two cities. I also hired many consultants and engineers for my various projects.
While it is true that the economy was slowing down before the elections, and I was propping up my practice with my savings, the bottom fell in 2010.
I had to close my office, and as far as I know only one of my ex-employees has been able to find a job.
I have not been able to re-open my office; I do small projects one in a while.
Before the housing crash I was making six figures. Now, I'm not making even 20k a year.
This year's election is ONLY about one thing: JOBS. And I don't think the current president understands how to solve that problem. All I hear is rhetoric and spin. I want to believe and hope, but I just can not.
one addition - for the past 4 years, employers have been keeping employees "in line" - putting up with no raises, pay cuts in some cases, more work for same pay as people are laid off or resign to find greener pastures, benefits cut, simple things such as "casual Friday" taken away. The chorus of "you should be glad you at least have a job" has been loud and constant. Workers have kept their heads down and their mouths shut just to keep whatever job they have, be it a good one or a passable one - or even a crummy one. Unions are being busted, people are being given no recourse.
This is not the American way, or at least it shouldn't be.
I think the question is biased. The assumption, when the question is asked, is that we are not better off and it is designed to lead people to that conclusion - to tell people that they are not better off, rather than actually ask. The question is designed to put Obama supporters on the defensive and plays on how people feel, rather than making people consider the many factors that would come into play in genuinely answering the question.
We are about the same now as four years ago, except our 401Ks and other retirement investments are back up to where they were, when George W. took office.
We live in Kansas, and the future of Kansas is very much up in the air. Gov. Brownback is using our state as a laboratory for an extreme right-wing experiment of income tax cuts for the very wealthy (including the Koch brothers) and privately held companies on the backs of the middle class and poor. Some researchers predict that Kansas will face a large tax deficit within a couple of years. Each year the Eagle (the Wichita daily paper) prints the Sedgwick County delinquent property tax records. Each year the majority of these deliquent properties are owned by limited corporations and developers. So next year not only will these people not pay their property taxes, they will not be paying income taxes.
"Bleeding Kansas" will be a metaphore for the red ink flowing through the state's finances.
For me, the prospect of another Republican administration is very concerning. When George W. took office, the US was in the black, just as Kansas was when Gov. Brownback took office. I predict that Kansas will be in the same shape as the US is in now within two years.
I'm continuing to listen this morning to the show - can you have them answer the same simple "better off now" question you've asked us?
Maybe some people measure doing better by getting fatter and getting a government check. My eyeball survey tells me about half the population has little if any work ethic.
Excellent point by Martin (?) that classroom education isn't necessarily what is required to prepare people for the jobs that are available. 'It's not for everyone.' Sadly, when Obama ridiculed Romney a few weeks back for making this exact same point, this show and npr did nothing to speak to it. Providing a college education to all at the taxpayers' expense isn't necessarily a good thing. The intellectual elite at this show and npr don't understand that, unfortunately.