Yep That Bush Economy is Doing Just Great

Well, okay the economy is doing alright and while the news that Ford is going to cut 30,000 jobs and close at least 10 North American plants is not good news it doesn’t mean the economy is heading into the tank (see also James’ post about GM cutting 30,000 jobs and closing 12 N. American plants). But it does indicate that the economy isn’t so “Great!” like many have been braying. The economy is doing alright, but the recovery is more than four years old and that makes it a fairly “old” expansion (click here for information on the length of economic expansions). The payroll survey numbers for jobs has been spotty, and since the end of the recession has been rather lack luster when compared to previous expansions.

But hopefully the economy will adjust to the higher energy prices, and the expansion will continue. Still, there are some serious issues facing the economy such as the completely unrestrained spending of the Bush Administration (aided and abetted by the Republicans in Congress), the trade deficit, and aging work force (i.e. big jumps in Social Security and Medicare spending).

FILED UNDER: Economics and Business, , ,
Steve Verdon
About Steve Verdon
Steve has a B.A. in Economics from the University of California, Los Angeles and attended graduate school at The George Washington University, leaving school shortly before staring work on his dissertation when his first child was born. He works in the energy industry and prior to that worked at the Bureau of Labor Statistics in the Division of Price Index and Number Research. He joined the staff at OTB in November 2004.

Comments

  1. Bithead says:

    But it does indicate that the economy isn’t so “Great!”

    What it indicates, Steve, is that the Unions weren’t so great, and that the model they were founded on is not workable, in the long term. The unions have been able to hold off the storm by means of insisting our govenermnt involve itself in protectionism. But that ended a few years ago, and they’re now paying the price of competition.

    Did anyone, other than union cheerleaders, really think that the situation enforced by the unions for so long was going to survive for long once people were able to buy elsewhere?

  2. While I share your concerns about the spending habits of whomever is in charge of Congress at any given time, the bottomless pit of entitlements, and various factors beyond the control of anyone, I do wonder if you have given up on free markets. I guess I missed the memo that required the maintenance of every overpriced legacy job in the economy for a recovery to be considered robust. Shouldn’t we count the jobs created at automakers not named GM or Ford to determine the health of the automotive industry, rather than just wringing our hands over the demise of what appear to be the less efficient producers?

    Unfettered capitalism is ruthless, but in the long run that’s a good thing. Personally, I wish we could drop the pretense that any president controls the economy. Heaven help us should that become true.

  3. Fersboo says:

    Considering the tomfoolery behind the prior administration, I feel more comfortable now then in say, mid-2000, with all the ‘irrational exuberance’ of the tech bubble.

  4. RJN says:

    Greedy unions killed, or will kill, Ford and GM. I suppose that the pressure on union leaders to continually “get more” can be understood; but, greed, and unfunded pensions, are the cause.

  5. RA says:

    The best thing we can do to guarantee a stable economy in the future is to dump a large number of environmental wackos in the house and senate. The word must get out, if you vote against ANWR you will be booted out by people who don’t want $6-8 / gallon gas prices.

  6. Scott in CA says:

    Perhaps some of the laid off auto workers can go apply to the new Toyota plant under construction in San Antonio. Oddly, the non-union carmakers are doing just fine. The auto industry is moving south to right-to-work states. Unions have no power there. Sure, you can join one, but no one has to join or pay dues/agency fees. No closed shops. UAW is a dinosaur.

  7. Bithead says:

    Perhaps some of the laid off auto workers can go apply to the new Toyota plant under construction in San Antonio.

    I expect many of them to do exactly that.

  8. anjin-san says:

    “Greedy unions” are killing GM & Ford? And I thought it was the crappy cars…

  9. Bithead says:

    And who builds them?

    Oh, yeah.,.. Union people, huh?

  10. Debbie Downer…