The economy is the number one issue on the campaign trail. . .or so the media tells us. We all care deeply about our homes, our jobs, and our families. Makes sense.
We all care deeply about the economy and how to get it back on track and out of this recession. . .or so the media tells us. Since the issue is so important, I’ve decided to dedicate today on talking a bit more about the economy, starting with Gramm’s gaff.
The Economist Talks About the Economy
Phil Gramm, one of McCain’s top surrogates, a former presidential candidate and long time friend–got John McCain in a heap of hot water by calling Americans a nation of whiners. He says we’re in a mental recession not a real recession. He says that we think we’re in decline, and notes that despite this supposed constant loss of jobs, the economy still continues to grow at about 1%.
“Peshaw!” cry the presumptive nominees.
“This guy doesn’t know what he’s talking about.”
“We don’t need another Dr. Phil,” remarks Obama, drawing applause.
McCain says that Gramm can be the ambassador to Belarus when asked about a position Gramm might hold in his cabinet.
Did I mention that this is Phil Gramm, Ph.D. as in Doctorate of Economics? Could it be that he knows what he’s talking about? Just a thought. . .since he has a doctorate and all.
We’re Not Actually in a Recession Folks
The technical definition of a recession is loss over two quarters consecutively. While Gramm points out that we might see a recession, we haven’t seen one yet and he’s right. While we don’t want to be slapped on the hands for our naughty spending habits–I have to agree with him on that count as well. Why? There are all sorts of situations and things have gotten tight–I’m not denying that. But I do think that Gramm has rightfully pointed out that we are a nation who in general, is not used to living within their means.
Personally, I’m disappointed in both candidates’ responses. I’m not entirely convinced it is reasonable or desirable as a nation to have a government that bails you out at every turn. While the candidates are criticizing Gramm, I say ‘kudos’ for having the integrity to be honest about where we stand. Come back later for more on the candidates’ responses and their position on the economy.
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How Did Our Economy Get Into This Mess?