Bennett and the economy
Published by Mike Stark June 14th, 2006 in Bill BennettIf I was a better blogger, I’d link up every post I’ve ever read that supports my argument. I’ve got decent comprehension and memory, but I’m not able to remember where I read each stat I cite…
Regardless, I think I took some of the wind out of Bennett’s sidekick’s sails…
Finally - I’d really like to see the stat that says more than 50% of Americans have investments other than savings… I’m still not sure I buy that one.
13 Responses to “Bennett and the economy”
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A good, balanced call. The problem with economics is as stated that you can hide the faults of your arguments in statistics. Look how they compared the current unemployment rate (a 1 month snap shot) with the ENTIRE run of the Clinton’s administration (an 8 year snap shot).
It seems odd that 7 out 10 US Citizens live in their own home. That sounds a tad high. Still, at least they gave a Percentage of homeowners instead of the RNC talking point that home ownership is at an all time high (home ownership is always higher than the previous year ever since that stat has been tracked).
Unemployment is another issue. They MUST include all those capable of working (exclude students, stay-at-home spouses, inmates, hospitalized, etc.) that do not have a job. That gives a true pool of people that compete for jobs.
You made a good point: Market indicators mean nothing to the hourly wage workers. The only thing that matters is how much they make compared to how much they must spend. If cost of living increases, that’s less money to use for savings.
Charles actually hits all the points I wanted to make. I also don’t believe that 70% of all Americans own their own home. I live in Los Angeles, where less than 20% of residents own their own home. I know that LA is not representative of the United States, and LA is very expensive, but I believe that other urban areas have similar statistics. It would be hard to believe that the percentage of home owners in rural areas would offset that.
I thought I read somewhere (can’t remember where) that the average American income has gone DOWN in the last five years. To me that is a point more important than the unemployment rate.
His argument that most Americans are invested in the stock market and therefore must be reaping the benefits of corporate America run amok is laughable! Americans with paltry investments in the stock market does not make up for job losses and wages spiraliing downward.
It makes no difference how many people have invested in a 401K because employers will soon be eliminating pension plans meaning such investments are a fiscal necessity! Furthermore, with the death of manufacturing in this country, and the living wage these jobs produced, how many living wage jobs are their replacements? Practically none, the new job growth is primarily in the service industry, which the neocons use as their “hard data” to prove their is job growth. They don’t like to mention what *kind* of job growth though. The disappearance of the middle class is happening with blazing speed.
(Remember when someone from the Dept. of Labor or some other member of the Bush administration tried to reclassify the food service industry as a “manufacturing” position? This same individual also is on record as saying that “outsourcing is good for America”)
Mike, you might find the following helpful for future arguments, has a ton of relevant and useful economic information.
http://www.prospect.org/web/page.ww?section=root&name=ViewPrint&articleId=11300
Cynics like Bennett have no problem chastising pampered middle class workers for their luxurious lifestyles all the while knowing that their consumer spending has been behind this economic recovery.
Just read today’s Boston Globe: “Analysts said consumers, who have been the driving force in the four-year-old economic expansion [2/3 total economic activity], are beginning to flag in their shopping zeal under an array of adverse forces.”
How do you treat the backbone of the economy? The middle class gets bankruptcy reform thrown in its face just in time for those interest only loans to kick in. The short sightedness and unsustainability of it all astounds me - like spinning plates.
I agree people fill their lives up with things they don’t need. That’s what marketing and want creation is all about. Whatever we’re left with at this point is far from a free market where informed consumers make rational choices. But Bennett’s critique would have more credence coming from H.D. Thoreau and not from some class warfare mercenary
Oh ya Odanny - I remember that food service one. Some suit in the administration said that since one lubricates buns with mayo and then assembles the parts: lettuce, burgers, tomato, loogie into a sandwich, and packages the final prodect then that must be manufacturing.
Found an article. Depending on how it is phrased, they may be correct.
http://ici.org/statements/nr/2002/02_news_equity_ownership.html
Half of American Households Own Equities
Washington, DC, September 27, 2002 - Nearly half of all U.S. households, an estimated 52.7 million, owned equities as the year began, according to a survey released today by the Investment Company Institute (ICI) and the Securities Industry Association (SIA).
The typical investor holds an equity portfolio of moderate value (nearly half had equity assets of less than $50,000) and is married, employed, college-educated, and in his or her late 40’s, with a median household income in the low $60,000’s. More than a third (34 percent) own mutual funds, individual stocks, or a combination of both inside an employer-sponsored plan. Nearly as many (33.7 percent) hold equities outside such plans.
well done mike. well done.
Well, I found at least 1 lie in that interview. Didn’t take long either. I’m sure with about 1 hours worth of work i can find lies in their own statement. “70% of Americans own their own homes” What kind of a bubble do you have to be in to believe that lie. What he’s actually spinning is that Census Bereau reports that out of the estimated houses in America, 70% of them are owned. 30% are rented. The white house tries to sell this lie too. there are nearly 300,000,000 americans and only about 125,000,000 homes. This is alone about 74,000,000 of those are owned as opposed to rented. none of those figures would even come to nearly 70% of americans owning homes. but that’s how the right wing skews stuff for there own agenda. You can just look around and see that that many people don’t own homes, assuming you don’t live in a gated community or in the boonies.
P.S. Please delete my repeat comments. I’m trying to learn how to do links as well.
You guys are off about the hamburger thing. It was an offhand comment, never a serious proposal.
Regarding the “offhand comment” about fast food manufacturing:
http://www.cbsnews.com/stories/2004/02/20/politics/main601336.shtml
The article describes information in the “annual Economic Report of the President“.
As first reported by The New York Times, the fast food issue is taken up on page 73 of the lengthy report in a special box headlined “What is manufacturing?”
“The definition of a manufactured product,” the box reads, “is not straightforward.”
“When a fast-food restaurant sells a hamburger, for example, is it providing a ’service’ or is it combining inputs to ‘manufacture’ a product?” it asks.
Manufacturing is defined by the Census Bureau as work involving employees who are “engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.”
But, the president’s report notes, even the Census Bureau has acknowledged that its definition “can be somewhat blurry,” with bakeries, candy stores, custom tailors and tire retreading services considered manufacturing.
“Mixing water and concentrate to produce soft drinks is classified as manufacturing,” the president’s report reads. “However, if that activity is performed at a snack bar, it is considered a service.”
The report does not recommend that burger-flippers be counted alongside factory workers.
Ezsuds81 Jun 15th, 2006 at 9:08 am
I can see certain types of bakeries offering manufacturing jobs, ie Krispy Kreme where the product is shipped to many retail outlets. The Census should probably included a wholesale vs standard in it’s definition as well.
http://www.economist.com/world/displaystory.cfm?story_id=7055911
the economist is conservative too
and also- http://mediamatters.org/items/200603240004 (for the graph/info, just ignore hannity)
When Bennett says more than 50% of Americans have investments other than savings, he’s talking about what they have invested in their gas tank.