Economic Growth

The Economy Improving Greatly, But Obama Gets Little Credit For It!

Ronald 1 Comment

The American economy is rapidly growing and improving, and the future is bright, except for the problem of unemployment. The auto industry is booming, as Obama saved the industry by giving them assistance in 2009-2010, and the expansion of the economy has also been benefited by three to four percent growth in the past two economic quarters. But one would get the impression that Barack Obama deserves no credit, when he deserves most of the credit for the improvements!

There is still the issue of refusal of the GOP House of Representatives to promote infrastructure spending, to raise the minimum wage to the level of inflation over the years, to continue the assistance to long term unemployed to avoid starvation and homelessness, and the need to push for education, as the future for the young, with proof that the more educated one is, the much lower the unemployment rate really is, and will continue to be. Also, lowering the debt for college students and graduates, as much as there are subsidies for corporations, would be a massive move in the right direction.

That is why it is essential for an end to the deadlock in the nation’s capital, and for action to be taken, but if not, the urgency of a Democratic Congress majority in both houses in November’s midterm elections is apparent!

Desperate Need For Infrastructure Obvious After Train Tragedy In NYC

Ronald 7 Comments

It has been stated for the past five years by the Obama Administration, that there is a dire need for infrastructure spending, not only to create jobs as part of the economic recovery, but also to upgrade our deteriorating transportation system, whether highways, bridges, tunnels, airports, seaports, or train systems all across America.

Now with the train tragedy in New York City yesterday, the emphasis on the need to do something to upgrade our entire infrastructure shouts out at us more than ever, but the Republican Party has its head in the sand, and will not promote funding for what is essential for the American future.

We are now 14th in infrastructure statistics worldwide, and this is simply not sustainable for the long run, and the nation will suffer dramatically unless a drastic change in attitude, and willingness to fund growth, is accomplished!

The Effect Of Immigrants And Their Children In The Future American Workforce

Ronald 2 Comments

With the Baby Boomer generation retiring over the next two decades, we will need millions of new workers to enter the workforce to replace them, and to provide economic growth, and provide for the sustaining of Social Security and Medicare.

Much of that new workforce will be immigrants and their children, which are estimated to be 85 percent of the growth of the workforce over the next two decades, and are the group where most of the younger generation is evolving.

About 83 million people will enter the workforce over the next two decades, with about 59 million replacing retirees, and 24 million being the growth in the workforce.

About 31.5 million of the 83 million workforce entrants will be immigrants and their children, with, again, 85 percent of the 24 million workforce growth being immigrants and their children.

So we need to accept that those immigrants that are here illegally, will need to be integrated into the workforce, need to be educated, and their children given opportunity, that will not only benefit them, but the entire society!

So as in past generations, it is immigrants and their children that will sustain the growth and greatness of the American nation!

Great Republican Presidents And Infrastructure Investment In The Future

Ronald 6 Comments

As we come up on Presidents Day Weekend and Week, it is a good time to reflect on the record of the most outstanding Republican Presidents, and how they made great investments in infrastructure, in many ways their greatest contribution.

Abraham Lincoln made the building of the transcontinental railroad a high priority, although the Civil War slowed up the completion of the project, the finishing of the Union Pacific Railroad, to the year 1869, four years after his death. He saw the transcontinental railroad as a promoter of economic growth, and to make America truly a nation unified by a massive transportation system.

Dwight D. Eisenhower saw the importance of the development of the Interstate Highway System, and committed to it in the 1950s, as a way to promote economic growth and national security, and the continuous expansion of that system is a testimony to his commitment to this greatest of all public works projects.

Theodore Roosevelt saw the preservation of the environment through the building of a great national park system as good for the unity and growth of the nation, and he presided over the quadrupling of the our parks and other nature sites as the long range commitment to our future, as a nation which cared about its natural resources and respected the significance of nature.

Each of these three greatest Republican Presidents, about 40-50 years apart in their Presidencies, made a contribution to the future of our nation which cannot be measured by normal parameters. No wonder they are ranked as among the top ten Presidents in polls of intelligent observers of the office of the American Presidency!

GREAT News: Unemployment Drops to 8.3 Percent, With Larger Employment Growth Than Expected!

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The nation’s unemployment rate dropped dramatically in January, by two tenths of one percent, from 8.5 percent to 8.3 percent, a great sign of economic recovery.

About a quarter of a million jobs were created in the private sector, more than was expected.

This is great news for the Obama Administration, and for those who found work, and it gives hope of a more rapid economic recovery than previously forecast by economists.

It also makes the economy, at least for the moment, much less of a political plus for Mitt Romney or any other Republican Presidential nominee, which is a good thing, as the main focus in the election should not be the economy, but rather foreign policy leadership, and the effects on the future of a President selecting federal judges and the Supreme Court Justices, which has a longer range effect on all Americans than the economic problems we have faced in the past few years.

Nate Silver Gives Odds For Republican Presidential Candidates A Year Before The Presidential Election

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Nate Silver of the NEW YORK TIMES on Friday explained, according to his statistical model, the odds of any GOP candidate for President having the opportunity to win the popular vote in the 2012 Presidential Election..

Note he does not say that any of these candidates will win the election, because, of course, the Electoral College will decide who wins the White House, and four times the popular vote loser nationally (1824, 1876, 1888, 2000) has won the election.

According to his model, the best candidate with the most opportunity to win is Jon Huntsman, the former Utah Governor and Ambassador to China, who has so far made no dent in the public opinion polls.

And yet, Silver’s argument is that with a 2.5% growth of the economy in 2012, a fairly tepid growth thought to be the most likely and best scenario, Huntsman has a 71 percent chance of winning the popular vote, as compared to 58 percent for Mitt Romney. No other candidate can win under this model, with Herman Cain having a 41 percent chance, Rick Perry a 30 percent chance, and Michele Bachmann having a 12 percent chance.

IF there is a stalled economy with no growth, Huntsman’s chances rise to 90 percent, Romney to 83 percent, Cain to 70 percent, Perry to 59 percent, and Bachmann to 34 percent.

If GDP grows only 2.3 percent instead of 2.5 percent, Huntsman has a 73 percent chance of winning, Romney 60 percent, Cain 44 percent, Perry 32 percent, and Bachmann 14 percent.

If the economy grows by the unexpected amount of 4 percent GDP growth, then Huntsman has a 55 percent chance, Romney 40 percent, Cain 25 percent, Perry 17 percent, and Bachmann 5 percent.

Notice that Newt Gingrich, Ron Paul and Rick Santorum are not even considered in this model drawn up by Nate Silver.

It ultimately comes down to what the author has said many times; that Jon Huntsman, despite his poor performance in polls so far, is by far the best bet for the Republican Party against Barack Obama, BUT the Tea Party does not care for him; evangelical Christians will not like him for being a Mormon; and unless he can win New Hampshire, he will have no opportunity to move ahead, and right now it seems unlikely.

And since Romney has many of the same problems as Huntsman, as listed above, and has actually less of a chance than Huntsman among key GOP groups, it looks likely that the Republican Party will blow the chance they theoretically have to win the White House!

Why Did National Government Grow? Because Of Crises State And Local Governments Could Not Cope With!

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In the midst of constant debate about the validity and size and scope of national government in America, one truth shines out!

In time of crisis, it is the fact and the leadership of federal government that has saved us from disaster!

It was the recognition that state and local governments were unable to deal with anarchy and chaos during the period of the Articles of Confederation in the 1780s, which led to the Constitutional Convention and the establishment of a strong national government.

It was the reality that the Union was being dissolved by the secession of the Southern states, determined to protect their evil institution of slavery at all costs, that forced the growth of national government to keep the Union together, promote economic growth, expand the concept of human rights to all groups, and put America on the road to being a world leader.

It was the threat presented by foreign powers in World War I and World War II which required the growth of national government to protect our national security.

It was the national government which came to the rescue at the heights of the Great Depression, when the nation was in danger of chaos and possible turn toward dictatorship of the left or the right, triumphant elsewhere, but prevented by our national government.

It was our national government which had the ability to protect us during the period of the Cold War with the Soviet Union from 1945-1991.

Despite complaints about tactics, it was our national government which was looked to after the horrific attack on September 11, 2001, and has prevented any further attack.

Try to imagine leaving all of these crises to state and local governments, which so often have proved their incompetence, their inadequacy, their shallow nature, their narrow mindedness. We would not have had the history we have experienced, and would, most certainly, be under the control and dominance of foreign powers!

State and local governments have legitimate roles in our federal system, but it is the national government which has been the “hero” in our history, saving us from harm, chaos, and a future that would have been much more difficult than our national experience has proved to be!

Infrastructure, Innovation And Education: The ONLY Way To Economic Recovery!

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It is clear that the ONLY way to economic recovery is promoting infrastructure, innovation and education as the goals for our future!

It is estimated that $2.2 trillion in investments is needed in infrastructure in rebuilding of our rail systems, roads, highways, bridges and river systems over the next ten years, and this can be done by bond issues that will repay the costs over 30-50 years, with only a small investment of billions of dollars to get it started. Our national security and economic future demand such an investment!

At the same time, innovation in energy is essential for our future as well, so that we can wean ourselves off of oil, which has led us to military involvement in the Middle and Near East to preserve oil supplies. Solar and wind energy have to be part of our long term future, and we need to have imagination and vision if we are to have a prosperous and secure future!

Finally, education is essential on a much wider scale, providing opportunity for advancement in all fields of knowledge, and allowing college students the ability to have a future not burdened by excessive debts that prevent investment in homes, automobiles and other economic needs. So the move for cancelling the debt by having the government pay it, much like they did for banks and corporations and insurance companies, would be a great boost to the long term economy and cause an immediate economic revival!

Without vision in these three areas, no matter which party controls the White House and Congress, there will be no advancement of economic growth and national security for the short run and the long run!

The Middle Class Alarm Bell: Declining Rapidly In America and Multiplying In Brazil, India, China, Russia!

Ronald 2 Comments

In the midst of the greatest economic crisis for America since the 1930s, the alarming reality is that the middle class, the backbone of America, is rapidly declining, as stratification of wealth has grown to be the greatest it has ever been in American history.

At the same time, we are witnessing the multiplication of the middle class in Brazil, India, China and Russia, and that is an alarm bell that this nation is in danger of a declining role economically on the world scene, in competition with these rapidly growing nations’ prosperity!

Who would have thought after World War II, that within two thirds of a century later, the concept of an American Empire that would be the world’s leader would come to a crashing halt, as the statistics now indicate is happening before our eyes?

This is not a time for accusations and for political points to be gained! Rather it is a time for all Americans to unite behind an economic program that promotes economic growth, rather than stagnation. Sadly, the likelihood of Congress working with the President when they come back after Labor Day is considered quite remote, and the losers will be all of us in this nation that deserves better!