Economy Leaves Workers Behind - Boston Globe

[MissMillie]

Thomas Oliphant makes a few good points.

[NJCher]

1. some excellent facts and figures here

for those who are writing letters to the editor, etc.

Cher

[papau]

2. Someone besides Krugman notices Bush bets on weaker $, and nothing else

My goodness - someone besides Krugman (and the folks at DU) has taken the Rosy Senario that prevents any Dem from challenging Bush on the economy - and analysed it!

That huge 7.2% GNP jump hid a few things, didn't it?

Like inflation adjusted real disposable income dropping by 1.2 percent in September after having risen by 1.4 and 0.7 percent in July and August.

Like consumer spending, no longer with a tax cut push, being down 0.6 percent in September, after the tax cut push allowed it to rise by 0.8 percent in both July and August (as in the "robust durable goods increase" that the WSJ was so happy about actually decreasing by 4.6 percent in Sept after the tax cut good months increase of 3.8 and 4 percent in July and August).

And that predictor of future growth - the rate of savings - in September was down below 3 percent for the first time since the beginning of 2000.

And he dares to consider that the cut in Federal aid to the States that is causing increased State taxes - causing a decrease in disposable income per capita - meaning the increase in disposable income from the Federal tax cuts is offset to the point that inflation adjusted real disposable income per capita is almost flat -- not just this year but ever since Bush became president - moving from 1st qtr 01 of $23,470 to September 03's $24,874 - or 5.1 percent over nearly three years.

No wonder the GOP wants to pretend that the 7.2% GDP annualized 3rd qtr 03 gain means we talk only of the "future" - but as projected by Rosy - not as projected by the facts.

Bush has bet the farm on the spike in production caused by the weaker dollar leading to new jobs, and higher wages and salaries, before it leads to higher inflation.