Tuesday, December 2, 2008

MUST RECESSION/DEPRESSION = DEPRESSION?


So...we are in a recession.

So says the government.

And we have been in one for a long time.

As usual, the government is a bit slow on the up-take.

Mostly 'cause they want you to believe that everything is hunky-dory and they are handling their power well.

That and other lies they're embroiled in.

Economists have long postulated that: "A recession is when your neighbor loses his job. A depression is when you lose yours."

A recession is defined by some economists as two consecutive quarters of economic contraction, or a decline in real gross domestic product.

Using that definition, we have, indeed been in recession for quite a while.

The sad thing, though, is the government's response to recession.

Presidents, Congresspersons, Senators, and judges seem to think they know how to control the economy and bring us out of recessions and keep us from depressions.

Presidents don't have a very good track record.

Raising tariffs is one of the reasons blamed for the Great Depression of 1929.

Herbert Hoover energetically tried to combat the oncoming depression with volunteer efforts and government action, none of which produced economic recovery during his term.

(Does the idea of volunteer efforts and government action resonate with anyone out there today? Think: Barack Obama)

In 1932, the Revenue Act increased the top tax rate from 25% to 63% and was Herbert Hoover's idea of how to get it together economically. Economists and I agree that this is one of the dumbest things HH did.

(Now we seem primed to repeat that experience).

During Jimmy Carter's administration, the economy suffered double-digit inflation, coupled with very high interest rates, oil shortages, high unemployment and slow economic growth.

On November 15, 2007, Economist.com had this to say: "In 1929, days after the stockmarket crash, the Harvard Economic Society reassured its subscribers: “A severe depression is outside the range of probability”. In a survey in March 2001, 95% of American economists said there would not be a recession, even though one had already started. Today, most economists do not forecast a recession in America, but the profession's pitiful forecasting record offers little comfort." (Underlineing is mine-JS)

Congress, both the House of Representatives and the Senate, have an even more dismal record.

In addition to going along with Herbert Hoover, Jimmy Carter, et. al., they now are themselves proposing the very actions that led to previous deep recessions and even the Great Depression!

What on earth is their problem?

Pseudo-psychiatrists say, "Doing the same thing over and over, expecting different results is the very definition of insanity."

So why can't lawmakers understand that doing the same things that led to recession and depression before will lead to recession and depression again?

Is brain-deadness a pre-requisite for congressional or senatorial service?

OK...I've vented enough.

I will now tell you (and all of the Senators and Congresspersons who regularly avoid reading this blog) exactly how to get out of this recession and how to prevent one in the future.

Are you ready?

Here goes:

President Bush, President Elect Obama, "honorable" Congresspersons and Senators, get your cotton-pickin' hands off of our economy!

It is above your pay-scale!

You are nothing but a bunch of lilly-livered, yellow-bellied, sap-suckers. You are beslubbering, beef-witted barnacles. To call you mammering, beetle-headed clotpoles would be elevating you beyond reason.

Get your hands off of our banks, our insurance companies, our auto-makers, our schools and any other entity you can think of.

Spend your time uniting this country, maintaining the justice system, keeping us peaceful, defending us against enemies without and within, promoting (not providing) our welfare, and ensuring that we are a free people...free from the unreasonable restraints of the federal government.

THEN STAND BACK AND WATCH US SOAR LIKE AN EAGLE!

12 comments:

Jennifer said...

Can I hear an AMEN! Awesome post Joe and you are spot on. One of the conveniences of having history to look back on, is that we can see what we've done wrong and change it. Not continuing to do the same thing.

{I will now tell you (and all of the Senators and Congresspersons who regularly avoid reading this blog) exactly how to get out of this recession and how to prevent one in the future.}

I literally laughed out loud at that. Wouldn't it be nice if our representatives would all come to our blogs for a little lesson in common sense.

Every point you made I found myself saying "Yes!" Keep your hands off our money and stick to the things that you should be dealing with!

shoprat said...

You're right but sadly too many people seem to think that their problems should be solved by the government.

Tapline said...

I'm glad you have the answer. I certainly don't....it is apparent they don't either as they keep bailing out everyone. Ford, I understand, has a great factory in Brazil.....maybe they better be looking at other avenues rather than a bailout by our Government.

Mark said...

Throwing money at the problem never works.

NO BAIL-OUTS!

Joe, you know I covered this in my last blogpost. We must stop, not continue the bleeding.

Anonymous said...

Joe, just keep waving your flag and everything will be all right. You are so dangerously ignorant, it's scary. Sit back and watch as our new amazing, intelligent, thoughtful AWESOME President (God it's so good to have a leader again) fix the mess you idiots made over the last 8 years.

Pasadena Closet Conservative said...

I'm too depressed to read it.

Joe said...

anonymous: Thank you for permission to wave my flag. I do so proudly, for it stands for freedom from excessive government control.

Which part of my post was ignorant?

Was it the part about "A recession is defined by some economists as two consecutive quarters of economic contraction, or a decline in real gross domestic product."?

That is a matter of fact.

Maybe it was, "Using that definition, we have, indeed been in recession for quite a while."

That's what the government and the government elect say.

Hmmm. Perhaps: "Raising tariffs is one of the reasons blamed for the Great Depression of 1929.

Herbert Hoover energetically tried to combat the oncoming depression with volunteer efforts and government action, none of which produced economic recovery during his term."

That part is true.

Barack Obama said that he would seek to reinstate the volunteer domestic army that has been used in the past...he said it, not me, so "(Does the idea of volunteer efforts and government action resonate with anyone out there today? Think: Barack Obama)" was right.

Maybe, "In 1932, the Revenue Act increased the top tax rate from 25% to 63% and was Herbert Hoover's idea of how to get it together economically. Economists and I agree that this is one of the dumbest things HH did." is the one you think I made a mistake on.

Well, the facts say otherwise.

"During Jimmy Carter's administration, the economy suffered double-digit inflation, coupled with very high interest rates, oil shortages, high unemployment and slow economic growth."

That actually happened.

"On November 15, 2007, Economist.com had this to say: "In 1929, days after the stockmarket crash, the Harvard Economic Society reassured its subscribers: “A severe depression is outside the range of probability”. In a survey in March 2001, 95% of American economists said there would not be a recession, even though one had already started. Today, most economists do not forecast a recession in America, but the profession's pitiful forecasting record offers little comfort." (Underlineing is mine-JS)"

You can go to www.economist.com and read what they wrote.

So tell me...which part of my post do you think is "dangerously ignorant?"

Tell me, O Wise One, for I want to know.

WomanHonorThyself said...

great rant..u can thank the democrats for their intervention years ago including barney Frank who should be in Federal prison now!

David Wyatt said...

By George, (not W) I think he's got it! Right on bro. Joe. I just wish we could get those leeches to actually do it. God Bless.

Ducky's here said...

You seem loath to indict that conservative priciples that brought this crisis.

The infallible market. Oh my, I damn near wet myself laughing everytime I hear that one.

Shoprat, what if Keynesian interventioon is exactly what is needed to at least lessen the impact of this coming depression? Would you have the government stand down? Cut off your nose to spite your face. I can't see much sense in that.

Joe said...

Ducky: "what if Keynesian interventioon is exactly what is needed to at least lessen the impact of this coming depression?"

That is EXACTLY what LENGTHENED the last depression.

So you are in favor of LENGTHENING the so-called "upcoming" depression?

Actually, we are nowhere near the previous depression.

Unemployment is still single digit, inflations is still single digit, and so on.

But if the government keeps involving itself, as it did before the last depression, I'm sure we can enter a depression before long.

That would surely make you happy...right?

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