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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Am I better off now than four yeas ago? Definitely! Four years ago I was recently retired, but not yet on Social Security. My husband and I were watching our income plummet to about half of what it had been. We cut every possible discretionary expense except for health insurance and our pledge to our church, and wondered what we would do if we couldn't afford rent in the apartment which, we were both beginning to think, was really too small. We even cut birthday and holiday presents out, for everyone except our two little grandchildren, And were worried about our Navy son's next deployment; it seemed likely that soon he'd be going to Iraq or Afghanistan, where, we heard, the private contractors had much better protective equipment than the troops. An thhe news was, the VA was already understaffed and insufficiently prepared to help injured warriors
And now? Our pension funds are pretty much back, We are thinking about a move to larger acccomodations with a second bedroom so our parents or other relatives can come for long overnight visits. For a couple of years we have given birthday presents to our children, and when the family gets together, we can all go to the movies or out for lunch. If our car doens't pass inspection this year and it might not, we can afford to get a new one. And I've just signed up for Medicare which will cover some of the work my doctor has recommended, that I haven't been able to afford. Our son still proudly serves, but we know that now, the military are well equipped, and the Veteran's Administration too, thanks to President Obama.
And this year, we were able to raise our church pledge.
Yes, we are better off than four years ago.
Ruth Gibson
Chapel Hill NC
Isn't a fundamental issue the fact that public employment has been gutted - over a million jobs lost because of political decisions to cut domestic spending. Fewer public safety officers, teachers, workers building infrastructure.
Am I better off? Yes. As an American in a world in which the United States has run questionable to nefarious operations for so any years, it appears that the present administration has reduced these, thereby improving the international reputation of this country. The world has less reason to fear a trigger-happy U.S.
In the domain of my own, "individual" economics, I have to watch spending more closely, and the exercise of such care has improved life!
Of course the notion of being an "individual" is deceptive. My community --my part of the country, state, and county-- has also had to deal with the current circumstances, and in these circumstances we see a greater need for co-operation. The community is challenged, but improved here and there (unevenly improved, but improved, for many of us --if not yet enough of us-- as a place to live).
Economic growth can't depend on the service economy we are creating. What will be the engine of the economy of the future? What about policies regarding greater efficiency through technology? Growth in Agriculture and mining?
Why doesn't anyone remember that President Obama dis make a speech about the point that the economy may not be fixed in his first term or even while he was President. My husban always reminds me of that speech it was einther before or right after he was elected.
Are people moving less because more people own homes than rent before Regan/Bush/Clinton
It might not seem on the surface that I am better off. My employer hasn't given pay raises in the past seven years. But alone the changes resulting from the affordable health care act have improved my situation considerably. Not having to pay for preventative care as mammograms and pap smears anymore as well as the refunds insurance companies had to pay if they did not delegate 80% of the premium toward health care. I am forever grateful to the president for instituting the ahca and it gives me great anxiety that all that may be lost if Mr Romney is elected this Fall
The question should also include those outside of the United States as American young adults don't have jobs or have historically low paying jobs, those young adults in Greece, Spain, Italy and the Middle East have 25-50% or higher unemployment. How can any economy survive when there are no jobs for the young adults around the world? I don't see how things are getting better. We aren't even addressing the right problem.
Tammy
San Antonio, TX
Jim Davis, you criticize Obama for being an intellectual elitist and making it seem like everybody needs to go to college to be successful (statistically, a bachelor's degree earns about twice what a high school diploma does), but Obama proposed allocating 12 billion dollars to community colleges over 10 years through the Commnunity College Initiative - which includes education in trades such as automotive, cullinary, and firefighting.
I am a self employed medical illustrator, and my business has been better this year than in the last three years. Many of my professional peers are reporting that they are busier than they have been in quite a while. One marker is that organizations that contract for our services are now more willing to spend money on patient education/marketing than they have been for the last few years. That's a good sign!
Those who've been fortunate to keep their jobs have often seen their wages decline due to a lack of raises. We are in the 6th year of a salary freeze while every one of our expenses has slowly increased. This for a PhD with 20+ years teaching experience at a state college. Also, minimum wage jobs do not allow an individual to actually support him/herself. How can the economy recover when even many of those with full time employement struggle to meet day to day expenses? And what about the looming student debt crisis? We are not better off than 4 years ago; we struggling to maintain and slowly slipping behind. That said, I believe that Obama's approach to fiscal and economic policy will be better for us than Romney's.
Am I better off than four years ago? My answer is a resounding"yes".
I am better off. So are Mitt Romney and Paul Ryan and all the members of congress.
I will/do support Obama.
I am still employed. So yes. They say there are jobs out there but the unemployed are not trained.One stimulus seems to me would be to train persons to do these jobs approx. like a pell grant or a way for trained employees to pay back the costs on their state tax say for 3years or a credit.
Van from G-town, you are correct in ignoring extremists. I congratulate the Panelist who visited bombed out Gastonia. Please remember that low wage non-union textile mills held Gaston County down for more than a century. The Downtown Boondoggle is an anomaly there because the city council uses general property tax revenues to subsidize real estate speculation in the outdated commercial core. Some of our wealthiest and most selfish old name citizens play this ugly game. (The hospital is our commercial engine thanks to federal money and woe be if Ryan has his way.)
One or two concerns control most of our closed factories and are gouging rent with tax subsidy and tax discount help from the county commissioners. It's probably not uncommon across the country considering how so few own it all. Gaston County is mired in the expectations of the local rich and outside speculators. I heard one say textiles will return when wages and benefits hit bottom. I see too many kids in shacks already.
Please explain how ACA 'reigned in costs?'
In response to Ruth Gibson: Thanks! Beautifully detailed. A real American story, a good one.
I am a former Republican who is now a middle of the roader. I voted for Obama. I have been disgusted by the way that the republicans in Congress have voted against any plan the Democrats put forth. I am reluctant to vote for a bunch of bullies this time around. I have no idea how the economy would have evolved if everyone in Congress cooperated. And I am afraid of bullies who would subject me to their rule.
I wonder if businesses have held back because they are anxious to be rid of Obama.
I watch our schools try and deal with bullying and then watch our legislators become bullies.
I know of multiple small business owners like your caller from Houston who are being told by the accountants and financial advisors that ACA will drive up their costs. On these talking head shows, policy wonks keep saying, 'that's not the case.' Bottom line, employers listen to their advisors because they trust them.
Sami- Some income success by college grads results from their connections and not from their learning, maybe more than comes from classes.
re: "partisan politics'" statement that no one is better off unless from the Obama stimulus..This statement seems to contradict the statement of the panellists that 93% of the wealth brought in through the re-rise of the stock market went to a very top few of stock owners. Those people are better off. That represents a Lot more money than the too small amount Republicans allowed the Obama administration to pass in stimulus spending. I would say that the money that went into "stimulated" pockets went to more people than just them because that money needed to be spent on food and clothing and services for those aided people in their home towns. So that money aided MORE people AND the general economy. Money given to the wealthy does not go to new jobs particularly in America. Nor does it need to go into circulation in America.
I am definitely better off now. I am retired and most of my net worth is in my stock portfolio, including my IRA.
It is amazing how most people commenting here criticize the panelists because they don't answer the question, and then they do not answer the question themselves.
Are you better off? Yes or No.
The 1% ers say that they make all the JOBS. They received a tax cut 12 yrs. ago. I'm waiting for them to produce!! They have the nerve to make millions on the weakest of the population. It is a sad state of affairs when an economy is so dependent on the weakest of us all. I'm still waiting for the upper class to produce the jobs.
I am better off than 4 years ago. I'm underemployed, but the work I do have is reliable and pays a decent wage. Where I am much better off is with my stock market investments. I lost a third of my portfolio in 2008 (much less than many other people I know) and remember that horrible feeling watching my balance shrink. I have now recouped that loss and the account has continued to grow. This is my retirement savings, so I rely on it being there for me in the future.
I am lucky to be just fine, due to unique circumstances. I am 77, own my home, live simply, and have some investments that are based on less risky businesses. My grown children have held onto their jobs. My grandson, age 16, was able to earn this summer doing odd jobs. His family's church community responded wonderfully, and he was able to put money in the bank.
I know how fortunate I am. My charitable contributions go to organizations that support food banks and programs that help people less well off as state and local funds have dwindled.
My family is more secure than we were 4 years ago.
My husband lost his job shortly before the bottom fell out. He was 59 and we thought he could retire since we had good savings and investments and owed very little. Well, we learned that health insurance would cost us $1000.00 a month and then our investments and 401K retirement fund were basically worthless.
My husband had to find a new job which he did but at half the salary he had reached over the 35 years he had worked. But, he did find a good job and this company is doing well and the future is encouraging. However, I don't expect that salaries and benefits will ever be the same. It wasn't sustainable.
We are looking forward again to being "retired".
Some people "create jobs" by oppressing employees so much they need medical care, and others by littering or polluting. I'm worse off than 4 years ago by choice because I now volunteer without salary and give much of my trust income to the worst off, but I'm happier and less guilty, and I understand more about love power than 4 years ago. Learning about the reality of structural injustice locally has made me stronger, and now I see my home in a national and global context. Maybe by next cycle it will be possible for a trust fund Lesbian like me to win elective office. Some things get worse but people wake up when the pain hits. Prepare now to plant Spring gardens because food is going up, and Obomney can't fix that.
Better off now?
Well, we've removed almost all troops from Iraq, drawing down in Afghanistan, gays are allowed to serve openly in the military, women's issues are finally being stood up for, and the economy is on a slow but steady recovery when Europe is looking pretty crappy.
This administration has done just fine by me.
The question of "are you better off now" is such a stupid one because it assumes that how well off you are now has anything to do with this administration or the government at all. Did you lose your home? Blame the banks and horrible money-making schemes of wall street. Your union no longer able to guarantee a living wage? Blame the union-busting Republicans or corporations that ship jobs overseas.
My personal finances are much better now than 4 years ago but that has nothing to do with the Obama (or Bush) administration. However, my life is comprised of not just straight white people but also various minorities, women, gay people, etc. These people are being marginalized by the Republicans and the Obama administration is standing up for things they [and therefore I] find important.
just emailed this to Diane, bet she does not read it.
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Diane,
Israel has a massive deployed nuclear weapons arsenal. They are subtly blackmailing the Obama administration by threatening to use it against Iran if the US does not take action.
It is appalling that 30 minutes into this discussion, this obvious issue and Israel’s nukes have not entered the broadcast.