Economic recovery, what goes up must come down and….

that which is down will eventually come up.  But, for how long and how high?  Such are the questions of our economy.  No one needs stats and data to confirm what we all are experiencing in one way or another, our economy is in a serious rough patch.  Foreclosures, unemployment, business failures; the serious consequences of the financial melt-down and decades of regulations aimed at forcing unqualified loans.  An economy built on investments in and dependence on mortgage backed securities with oversold insurance against loss; the evidence played out in the snowball effect into our lives.

So what is next?  Is “the boom” coming?  Is it an “L” shaped or a “V” shaped recovery?  As if we didn’t need another reason to solidify our support for conservative candidates for Congress this cycle, Larry Kudlow has detailed how our financial recovery for years to come depends on free markets, lower taxes, and reduction in government. 


Comments

  1. The trajectory is for major inflation in about 3 years…. button down, get out of debt…

  2. Stephen Kohut says

    Molly,

    Kudlow points out “At this point it’s impossible to project a long-lived economic boom, such as we had following the deep recession of the early 1980s. For one thing, tax rates will rise in 2011 for successful earners and investors, quite unlike the Reagan cuts of the 1980s.”

    Are those the Bush tax cuts that McRINO fought against so hard? The ones McRINO disparaged? The ones Kudlow laments were not like Reagan’s and do not have a sunset clause?

    It’s a little late in the game for McRINO to switch sides and be for the cuts he so badly fought.

    My bet is a double dip recession as was the Great Depression driven by higher taxes, higher government spending, no job growth, increasing foreclosures and the collapse of the commercial real estate market. FDR increase in taxes and spending killed the initial recovery in the mid 1930’s. Anyone else see the similarities?

  3. kralmajales says

    Stephen, the great depression was not driven by higher taxes and govt. spending. You are totally wacked. It was driven by an era of unregulated greed…it was at time when corporations ruled America (sound familiar?).

    FDR got America out of the depression and it was done with massive govt. programs, massive spending, and taxation at a level that you cant even fathom (some have said above 70%!!!).

    You Republicans act like 30% is some kind of deathblow to America and it was the greatest generation that lived in these times…and lived through the greatest expansion of govt. in our history. Somehow, America survived that…it is what some of you even refer to as the good old days.

  4. kralmajales says

    Here is a little tax rate history for you folks. You all really need it. Seriously. You have NO idea where America has been in taxation…and you have no idea how great you have it right now if you are worried about how much you pay in taxes.

    Greed….greed…greed. Read this and look at how we used to pay for our wars folks and for our spending.

    Look at how the GOP does it now. They cut taxes and increase spending.

    “Congress re-adopted the income tax that same year, levying a 1% tax on net personal incomes above $3,000, with a 6% surtax on incomes above $500,000. By 1918, the top rate of the income tax was increased to 77% (on income over $1,000,000) to finance World War I. The top marginal tax rate was reduced to 58% in 1922, to 25% in 1925, and finally to 24% in 1929. In 1932 the top marginal tax rate was increased to 63% during the Great Depression and steadily increased, reaching 94% (on all income over $200,000) in 1945.

    During World War II, Congress introduced payroll withholding and quarterly tax payments, Franklin D. Roosevelt tried to impose a 100% tax on all incomes over $25,000 to help with the war effort. Top marginal tax rates stayed near or above 90% until 1964 when the top marginal tax rate was lowered to 70%. The top marginal tax rate was lowered to 50% in 1982 and eventually to 28% in 1988.

    In 1990, the top marginal rate was raised to 31% in a budget deal President H.W. Bush made with the Congress. In 1993 the Clinton administration proposed and the Congress accepted (with no Republican support) raising the top marginal rate to 39.6%. In 2001 President George W. Bush proposed and the Congress accepted lowering the top marginal rate to 35%. However, this measure had a sunset provision and was scheduled to expire in 2011 when rates would return to those adopted during the Clinton years.”

  5. We’ve been totally screwed by the Democrats starting since Nancy Pelosi and Harry Reid took control of the House and Senate the last two years of Bush’s term in office. It’s been a spending frenzy since, now enhanced by smothering generational taxation. Pelosi and Reid and Obama have revived the old “indentured servant” class and “heriditary debt” that the overlords demanded the children of peasants continue to pay.

    One can’t have an “economic recovery” if the economy was killed.

    Credit interest rates are going up, so promises the MSM, just posted TODAY. Consumer credit will be steadily rising from 11% ranges to 17% -18% – the public has been warned TODAY.

    Those who remember the Carter years of crushing credit rates – 21-22% are already feeling the icy chill down their spines.

    The only thing going to go “boom” is the credit market. Pay off all your cards NOW. ZERO. And if you don’t use your card, they’ll cancel it. No credit available for you anymore. Damned if you do and damned if you don’t.

    Nancy Pelosi is a multimillionaire. She’s fine. Obama is a millionaire, and he don’t care, he gets personal live concerts all the time for him and his buds at the White House for FREE, so he doesn’t have to dip into his POTUS salary for his entertainment or daily meals, or housing or travel.
    We’re paying for it all, and more to come since they’ve PROMISED our utility bills will go up … to “save the environment.”

  6. kralmajales says

    Wanumba,

    I will remind you that is was this President and Congress that regulated the credit card companies that you decry to give consumers relief and protection from that fraud.

    Interest rates (the fed) is at zero. It has no where to go but up, yes.

    You cannot possibly lay the blame of the Bush run up of the deficit on Nancy Pelosi. The Bush White House and Cheney proudly increased the power of the Executive office to a level that is unprecedented. TARP was Bush and most of the GOP was on board and trumpeted it.

    and on the millionaires? Funny, President Obama has not raised taxes on the working class…even though our taxes are at record lows. Everyone knows that the Bush tax cuts coupled with unbridled GOP spending is why we have the deficit we do…AND the mess this President now has to protect us from. He will get hammered for it now…as the recovery has begun. Will you all try to take credit for it after you did what Bush did…and then proposed and did NOTHING.

  7. kralmajales says

    Smothering generational taxation.

    I sure hope you don’t have a college degree because if you do you need to turn it in.

    Look at the levels of taxes in our history and tell me if what we have now (or even what it will go back to before Bush lowered then and increased spending) is even close.

    No one wants 70 or 80% taxes like we had during World War I or WWII, but we also want schools, roads, and to maybe even pay for our wars.

    Dont ever lay deficits and generational crap on the Democrats. They seek to pay for what they spend. You all talk a good game but have never delivered. Not even St. Reagan.

  8. kralmajales says

    Here is a little bit about our taxation history.

    We are NOT belng taxed to death. We are getting more for our taxes than at any time in America’s history. Shocker…we want govt. (so do Republicans folks…dont be fooled) and we dont want to pay for it either.

  9. What do you mean by, “we?” You and the frog in your pocket?

    Are you one of those lucky 50% folks who doesn’t pay so you don’t have a clue as to what’s being sucked out of everyone else? Have you checked how much of your electrical bill is tax, your gasoline bill, any airline ticket, your phone bill, your restaurant tab, you car, your house, your trailer, your motorcycle, your bike, your water? Your clothes, your food?
    And whatever it is, the Democrats have PROMISED MORE TAX. Cap and trade, VAT … tax tax tax tax tax tax tax taxtaxtaxtaxtax. We’re being taxed immediately for healthcare and they don’t have any intention of delivering squat for 4 years.

  10. GAZE

  11. kralmajales says

    Yeah wanumba…there are taxes…I dont like paying them either but we get far more for our dollars…especially since the GOP continues to lower taxes and spend more. I see taxes added to most everything yes. That is often a result of your own party…cutting the taxes at the fed and passing it to the state. Cutting at the state and passing it to the localities. And even with that, yes, we are taxed lower than we have ever been taxed and we are no where near where we were in the days of the great depression, ww 1 and ww2. This is a crisis of mammoth proportions and instead of taxing to pay for what it takes to get us out of it, you want to go backward…backward to even less taxes…but you don’t want less govt. History has proven that over and over. This blog proves it every day.

    See the massive spending hike Rusell Pearce is proposing to send back all those “illegals”.

  12. kralmajales says

    and wanumba you are getting far far more for your tax dollar than you will ever admit. Roads, schools, a massive army, your war on drugs, your war on Afganistan, you war on Iraq, a wall at the border, more prisons, firefighters, law enforcement, courts, juvenile justice systems, social services, healthcare, social security, you receive the benefits of unemployment, your kids (if you have them) get subsidized higher ed, you might have gotten subsidized higher ed.

    I don’t care how much you think you pay …or do pay…I guarantee that you get more for it (even with any waste you might find) than you pay for.

  13. kralmajales says

    and to get all those goodies from govt that you like…you have to pay for some of the ones that I like. And I have swallow some of those that I don’t like with you.

    What we should be doing is stopping the BS ideology of lower taxes lower govt. and start talking about what we spend on and what we do not.

    Conservatives can’t hang in that game because what they find is that they can’t justify their spending so well when compared with many of the things I want to spend money on.

    Instead, conservatives lie by saying they want less in taxes, less in govt, when the really mean that they want tax dollars on their projects and not mine. Worse…they dont want to put out the money to pay for either…they borrow and spend…and faster than any democrat…because you cut the revenue too.

  14. Stephen Kohut says

    @ kralmajales 3,

    My undergrad and grad econ prof’s are laughing their butts off about now concerning how poorly educated the masses are. SA seems to become the place to provide remedial education to folks, so here goes.

    The first recession started in 1929, ended in March 1933 and recovery started BEFORE any of FDR’s New Deal had any impact. The recovery starting in 1933 was in spite of and not because of New Deal spending. The bulk of FDR’s spending did not start until 1936. It wasn’t until 1936 that Government spending significantly exceeded that of 1930~31 under Hoover. In 1936/7 there were two major taxes increase, the start of SS tax collection and a major income tax increase. In spite of FDR’s massive keynesian New Deal spending the US sunk into a second recession starting in May 1937 and bottoming in June 1938. Unemployment in 1939 was higher than in 1936 before the massive tax/spend policies of the 2nd New Deal. Bottom line is the massive tax/spend in FDR’s second term did squat to end the Great Depression. Make work jobs do not a recovery produce. Government is a consumer of wealthy not a creator of wealth. I suggest a few courses under a classically trained econ prof are in order.

    US Gross Domestic Product (current dollars)
    in 1929: $103.6 billion (recession starts)
    in 1930: $91.2
    in 1931: $76.5
    in 1932: $58.7 (income tax increase)
    in 1933: $56.4(bottom of 1st recession March, New Deal starts)
    in 1934: $66.0
    in 1935: $73.3
    in 1936: $83.8 (major new deal spending starts)
    in 1937: $91.9 (SS and income tax increase, start of 2nd recession)
    in 1938: $86.1 (Bottom of 2nd recession)
    in 1939: $92.2

    Growth of Government During the Great Depression

    in 1929: $9.4 billion (recession starts)
    in 1930: $10.0
    in 1931: $9.9
    in 1932: $8.7 (income tax increase)
    In 1933: $8.7 (bottom of 1st recession March, New Deal starts)
    in 1934: $10.5
    in 1935: $10.9
    in 1936: $13.1 (major new deal spending starts)
    in 1937: $12.8 (SS and income tax increase, start of 2nd recession)
    in 1938: $13.8 (Bottom of 2nd recession)
    in 1939: $14.8

    Unemployment During the Great Depression

    Average rate of unemployment
    in 1929: 3.2% (recession starts)
    in 1930: 8.9%
    in 1931: 16.3%
    in 1932: 24.1% (income tax increase)
    in 1933: 24.9% (bottom of 1st recession March, New Deal starts)
    in 1934: 21.7%
    in 1935: 20.1%
    in 1936: 16.9% (major new deal spending starts)
    in 1937: 14.3% (SS and income tax increase, start of 2nd recession)
    in 1938: 19.0% (bottom of 2nd recession June)
    in 1939: 17.2%

  15. kralmajales Says:
    April 11th, 2010 at 11:54 pm
    and wanumba you are getting far far more for your tax dollar than you will ever admit. Roads, schools, a massive army, your war on drugs, your war on Afganistan, you war on Iraq, a wall at the border,
    …………

    We obviously live in two alternate universes.

  16. Molly, unlike you, I am supporting a conservative candidate for the Republican nomination for United States Senate.

    Also, suggest you expand you alphabet, which should include a “W”.

Leave a Reply