Reply #3: the disconnect is amazing [View All]

[Zomby Woof]

Bush will trumpet the news as a rebound, and a justification for his supply-side voodoo. The news is even spinning it as a windfall from his tax cuts. Oh sure! I spent the $20.00 or so in one place! THe people who got those $300.00 checks last year made the rent, and the people who got them this year only did because they had children. These are very targeted tax cuts aimed at specific re-election demographics. But the rest of us in the real world who aren't exactly revelling in newfound wealth or better jobs - or ANY jobs if they can be had - won't buy the hype, and be resentful they aren't sharing the 'higher pie' with Bush and his sugar daddies in CEO-land.

That resentment can work in our favor next year, as it did in 1992.

Meanwhile, the increased consumer spending is much like 1984, where it was debt-based. That is like being rich because you maxed out your credit cards on luxury goods, instead of from savings and earnings. Plus, just like in the late 80's/early 90's, the workforce is squeezing out more productivity with the fewest workers possible. My low-paying temp job has 1991 written all over it. Outsourcing, layoffs, etc...

Hang in there Zen, and have some coffee: :donut: