The real reason that the US economy is so bad
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Recently there has been a lot of discussion over all of the major news networks about a possible default on the debt if the debt ceiling is not raised. But the real reason that the US economy is in such bad shape is never really revealed to the American public. The real reason for the bad economy is actually the Republican Party, more specifically former President George W. Bush and Vice President Richard Cheney. This might be hard for many of you to believe but this is the real cause of the economic crisis here in America which is one of the wealthiest countries on Earth. And this country has been able to maintain a high standard of living because of all this borrowing of money from other countries so it can finance its operations. Yes, the economic slowdown is also partially due to the loans that were not able to be paid off by many homeowners and the collapse of the subprime mortgage market. But the reality is that the Republican Party’s policies are responsible for the economic chaos that America is in right now and it is very clear. The United States government spends more money each month than the revenues that it generates and it is no wonder why the country is in debt. You cannot spend more money compared to the amount that you make and expect to be in good financial shape. Not even an average person in any country can do that and expect to not face consequences.
Just after Bill Clinton left the White House, America had a huge economic surplus. People in this country had jobs and they could support their families. But with the arrival of George W. Bush into the nation’s highest office, Bush and his team of advisors made a series of blunders which has left the US exactly in the shape that it is in now.
Using free market capitalism tactics combined with corruption, Bush and Cheney used a series of tax cuts which were shown to benefit only the wealthiest of Americans while middle class incomes declined from 2001 through 2009. Actually, the US deficit did not reach $1 trillion until 1981 which was the start of the Ronald Reagan presidency. The Republican Party’s main objective has been to make sure that the rich get richer while the poor continue to struggle. The Republican Party does not care about the average person.
And then with the September 11th incident, Bush launched a worldwide war on terrorism and on October 7, 2001, US forces went into Afghanistan to try and eliminate the Taliban and capture Osama Bin Laden who is now dead. The US forces along with the other NATO countries are stuck in an unwinnable war that can never be won through the use of force. It is said that wars are won politically. Then in March of 2003 the United States and the United Kingdom under then Prime Minister Tony Blair used a series of reasons to justify an illegal invasion of Iraq because they were concerned about Saddam Hussein having weapons of mass destruction. It is estimated that the US is spending $10 billion dollars each month to finance two lost wars while 1 out of every 4 children is now on food stamps. In addition to this, 1 out of 8 people is on food stamps. The United States cannot afford to keep spending this kind of money on these wars. It has been proven that you cannot spend billions of dollars on foreign wars and expect to have a healthy economy. Even James Madison understood this very well. The facts are very clear. If the United States continues the wars in Iraq and Afghanistan while the rich continue to get richer, the country is going to face bankruptcy along with other serious social problems. The corporations have continued to have record numbers of profits while an extension of the Bush era tax cuts resulted in the creation of only 18,000 jobs in June. The news media in this country broadcasts only what they want their citizens to hear. Wars are never good for a nation’s economy and it is clear that the United States is no longer a first world country like it claims to be. The US is becoming a country of the very rich or the very poor. The wars overseas along with the horrible decisions to cut the taxes of the wealthiest Americans have proven to be very costly. A nation that is on the verge of bankruptcy cannot ever be considered a first world nation. Some people have even said that Mexico now has a better economy than the United States does. The United States must withdraw all of its troops from both Iraq and Afghanistan as soon as possible. The wars in those countries have already been lost and there is no way that the US army can win these wars against populations that have so much pride and they are willing to die for their country. It is time that these wars came to an end right now. Ten years of war in Afghanistan has not eliminated the Taliban and force will never get rid of them. Almost 5,000 official US deaths later in Iraq have not produced the so-called weapons that Bush and Cheney claimed that Iraq had.
Instead, billions of dollars and many lives have been wasted for nothing while the US economy continues to suffer.
It is time for the people of America to stop blaming Barack Obama for the economic mess in America. He inherited this situation and it was never his fault. The real problem is the Republican Party and it is as simple as that. The Republican Party is extremely corrupt. A victory in the 2012 general election for the Republicans would mean that America will go further into debt and be destroyed economically. The Republican Party’s bad and irresponsible policies are to blame for the bad US economy and not Barack Obama. It is time that the American public realized this. The Republican Party of the late 20th and early 21st centuries is much different than the one that existed in the 1860s during the term of Abraham Lincoln. What a difference that a period of 140+ years can make in a country! Many things can change and there are many things in America that have changed since 1861.
More information on this subject can be found here
- Why Is The Economy So Bad?
Millions of Americans have lost their homes, tens of millions of Americans can't find a decent job and 44 million Americans are on food stamps. This is
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I agree the Dick is a fool. He single handedly steered the US into financial ruin, that Bush guy is to blame as well.
Great Hub A_Vaha. You are right that the GOP through tax cuts and wars skyrocketed the deficit out of surplus. Another reason the economy is a mess is that President Bush put industry cronies in all regulatory positions so all industries were left to their own devices. No wonder the economy ran off the rails.
What a refreshing hub on economic responsibilities. And you are right in blaming the predecessors of Mr. O. for the current mess.
Isn´t it worth to have a closer look and dig a little deeper and go back in time a little further. Today the US is in a condition where fighting one or two wars on foreign soil don´t make too much difference any more. You mentioned the 10 billion per months for the Irak and Afghanistan. Well - that is less than 200 billion per year and only a fraction of the yearly interest payments for the current public dept. The US can´t afford fighting wars any more, but stopping military action doesn´t shift direction of economic development either.
So when did it really matter economically that the US were playing wargames somewhere on this planet? Answer: The Vietnam war during the Nixon administration. That war wasted high quantities of industrial production and in its consequence led to the abolition of the Bretton Woods treaty.
I believe Nixon was quite smart and he understood the situation. That is why he really finished the war for economic reasons, against the odds of his republican, conservative kin. As Bretton Woods had prepared ground, in 1970 the seed for economic decline was planted and grew further on.
So the borrowing game is going on for a long, long time. The game is played by the public and by the private side equally.
It seems to me only Bill Clinton did a fairly decent job in housekeeping. All other did or do (incl. Mr. O) not understand economics. Mr. Bush jun. only understood Halliburtonomics.
And meanwhile a whole generation of economists twist Keynesian theories to explain and create models of a bright future while in reality things go wrong and wrong.
Mr. O. and his Geithners and Bernankes are part of this generation of economists. The Bush´s and Reagan flunked school completely when it came to economics.
Great hub, and wonderfully put discussion on what went down involving the 'directors' of this nation (and that, mind you).
I do have to point out though...do you think you would have done better in their shoes? During these times of distress, would you have focused more on your and your families' well-beings? Refusing to allow oneself and their kin the option to live comfortably, even with having concern at the deficit imposed on others in doing so, does seem like a drastic choice, doesn't it?
I agree that Bill and Hillary did a much better job balancing the budget for everyone, but we can recall that even they weren't perfect - nobody is - not you nor I. It's obvious that the recently elected officials were just as far from perfect if not more. Their decisions came with short term gain in mind to provide for themselves, but even Obama could have a tough time admitting he's also forced to either play poster-child or credit his position/ego in the same fashion. Who, in THEIR right mind wouldn't?
Meanwhile, we also can't lay all the blame on our leaders, either - WE put them there, either willingly voting them in or willingly not outvoting them from going in - we're just as responsible. It's again, the 'let someone else do it' mentality - meaning, like those who line their pockets at our expense, we wash our hands of the responsibility at theirs. A fair trade, no?
Indeed not. The Clintons knew what a fair trade was and how to look out for everyone in mind, considering they had very little time to work with, but don't think for one second they didn't also cash in on themselves in the process - they are still doing it today, very well, might I add, especially since they proved their worth and we can acknowledge them for that - that's their ultimate cash cow - it's a numbers game that they are good at and they know reputation will get you further (Bush saw short term, again, and hurt his rep). This isn't to say it's a bad thing, either, but it's what WE ALL have to work with.
In short, I'm just asking you to shovel some of that responsibility back our way - we need to accept it, too.
They say there's no "I" in "TEAM". Well, if "I" am not in it because the team won't recognize "I" am there, then where can we ever go far when "I" can't contribute what "I" bring to the table? ;)
- Christopher
The GOP created the deficit with two wars, a tax cut for the rich and the Medicare drug giveaway for a total of nearly 4 Trillion. Now they want to cut benifits to the working class to pay for it. They are representing their owners very well.
a_vaha1978
'' stop blaming Barack Obama for the economic mess in America. He inherited this situation and it was never his fault.''
Wake up hubbers. In 2006 the Democrats were elected to control (run the government ) the House and the Senate of which Senator Obama was in the Senate. For the President to continue using '' what he inherited is disingenuous and untruthful because he and his party controlled government spending, The Republicans were unable to control anything.
One must try to get by the propaganda that the mainstream media and the President have been feeding the public.
Check it out!
END of 2006, unemployment was 4.6%. From 2007 to 2008 unemployment was 7.6%. Obama with a SUPER Majority Democrat Congress managed to get unemployment to 10%, even after spending $800 BILLION plus stimulus taxpayer money. In 3.5 years the Obama Administration has spent and raised the national debt $4.5 trillion. The CBO recently projected that the 2012 deficit will be $ 1.25 trillion. The Senate has not passed a budget in 4 years, wonder why?
Somehow some people think Obama is doing a GOOD JOB. OBAMA promised jobs, he hasn't delivered as yet. NOTE! The Democrats have had 2/3’s control of our government from 2007 up to the present. The President refers to Congress holding up his legislation, follows up by blaming the Republicans (2011 to the present ).The truth is that the Democrat controlled Senate is holding up his legislation. The HOUSE has APPROVED 23 JOBS BILLS waiting to be voted on in the Senate. That’s a FACT
Interesting hub. My father wasn't around when Obama took office but he told me time and again what was coming to our economy. Everything in your article is what he said. Much of what he said has already happened to the economy.
I don't care to get into political discussions as I don't know if I think either side is any better than the other. One thing I do believe is that the republican party seems to always use fear as their marketing strategy. And fear sells to the people.
wwolfs
On 4/03/12, President Obama blasted the GOP’s policies as a ‘’ radical vision’’. Obama said ‘’ the House Republican budget plan endorsed by Romney would slash entitlements and agency spending, ‘’so far to the right ‘’ that it would make the 1994 Republican contract with America look like a new deal.
Let’s not forget that the 1994 take over of Congress by the Republicans helped President Clinton have a balanced budget and a surplus. Naturally Clinton took ALL the credit. President Obama called the Ryan budget a ‘’ Trojan horse ‘’disguised as a deficit-reduction plan, it’s really an attempt to impose a radical vision on our country ‘’. From one who understands ‘’ radical ‘’.
Obama’s 2013 budget failed the House vote 414-0. Last years obama’s 2012 budget failed a Senate vote 97-0. Obama and the Democrat controlled Senate has not passed a budget in 1,080 days .Senator Reid refuses to allow the Senate to vote on Obama’s 2013 budget. WONDER WHY?
March 25, 2012
Rep. Paul Ryan defends GOP budget plan
http://www.foxnews.com/on-air/fox-news-sunday/inde/v/1529380822001/rep-paul-ryan-defends-gop-budget-plan/?playlist_id=86913
I agree with what you said Christopher, we are all at faught. I wrote a Hub about our non complacent attitudes. We voted these people into office and let them run amuk. Oh I still believe Bush and Chenney's greed and arogance was the "cherry" on top...but I have to think back to the signs. For instance, every time the WH cried no money..no balanced budget, the first thing that was always cut was education..wasn't this our future. I remember when I learned that we accepted goods frm China, but they did not buy from us. Our leaders were always telling us we had to "cut back"...but millions of our dollars were going to other countries. We let our leaders stop our gowth, closing our anufacturing plants. Our leaders gave billion dollar contracts overeas. At first it looked like the silicon valley might bring industry back..but we allowed the leaders to tax to heavely, that even those industries were shipped overseas...and we did nothing. Our culture was eroding, it became a land grab. Everyone wanted the dollar. We allowed Regan to close VA Hospitals, I know this sounds petty..but this was a slow steady decline.
There were no banking regulations, we allowed Congress to sit on the hill and desttroy what was once a beautiful country. Do you know that to people coming here from other countrie..we look like a "third world" country we have decayed.
Congress should have stopped Bush. When I first heard him say "war". I laughed..surly it would't come to that. I knew those people did not mind death, infact, it was considered an honor. Look what they did to Russia, I laughed again, Congress would not allow it again, I deffered to our leaders. It's like we were all in trance, letting Bush and Chenney. And while this was going on our banking system was being raped, we had an Inusrance Co. called AIG, that was insuring invisible products..Bernie Madoff was not the only one..Bush got on TV and told us to go shopping, I new why..somehow money had just stopped. They tried to blame in on poor people who couldn't pay their mortgages..how stupid f poor people could bring a government to it's knees, we wouldn't be poor. No..this was big, someone had to take the fall, Lehman Brothers..they had to go to save AIG. All the roosters had come home. Company's ran and hid, banks that were solvent closed doors, no loans, business that counted on them were shit out of luck. Bush hought the bail out would help..it was too late..we were going down..800 Billion was not enough. But, funny some entities were making money they found out how to exploit the little people. Some could make money because they had the upper hand. What did Bush do? Nothing, he knew he just had to wait it out. Our President did nothing while the people he got into two wars, soilders were dying on the battlefields..people they were fighting for were loosing homes, jobs. People who were semi comfortable before, now did not now if they could feed their families. Foreclosers abound, people livig on the streets, hiding in foreclosed homes. What did our President do? People asked?..where's Bush, no one knew. Obama had won, but would not offically take office until Jan 2009, it was still Nov 2008. People cried to the new President for help, but Obama said, "there's one President at a time". Bush said nothing. While people begged and asked for help.
Funny, when he left office he announced that he had $600 Million to start a library.
I had to get that off my chest. No one should blame Obama.
Off went our leader, a black man was President..what a job he had waiting for him.
Just blame Republicans? Hasn't Obama upped the deficit? Hasn't Obama been spending on wars? Didn't Clinton spend on a war in Bosnia? But that is excused because they are on YOUR team. This is why independents are fed up with all the party hacks and spinners.
How about all the former Clinton people who sucked a fortune out of Fannie Mae and Freddie Mac before it collasped under policies started by Carter? One of them was Barney frank's lover but had no clue there was a problen. Neither did Chris "Countrywide Loan Deal" Dodd either.
Obama got a lot of money from the like of BP Oil and Goldman Sacs etc. They all contributed to the problem. In fact, Obama ran the deficit up giving our money to Wall Street failures. But they are on YOUR team so that doesn't really matter.
Try learning some history and real economics and keep the propaganda out of it.
PJ Jones
''I had to get that off my chest. No one should blame Obama''
You are misguided and need to find a source for the real truth as to what the country is experiencing in these troubled times. Obama says '' I am the President and I accept the responsibility for any blame''. The fact is that President Obama is not accepting any blame for anything if you listen to what he is saying to the American people. In your post you blame Bush and Cheney for many things but somehow you can overlook what Obama's policies have done to the country.
WERE WE BETTER OFF in 2006 with a Republican President and a Republican controlled Congress? Since Jan. 2007 to the present time, Democrats have had 2/3''s control of the government. THE MESS that President Obama refers to was the result of his party controlling the government.
President Barak Obama current news articles
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wmhoward4: Hasn't Obama upped the deficit?
Certainly he did - and he did not.Yes, he allowed for some artwork to happen called quantitive easing. But that QE was nothing else but transfering household debt from the subprime bubble (and the transmission units like AIG and some banks) to the sovereign debt portfolio. Of course that increased public deficit and debt consequently. But if you look at the economy as a whole (public, corporate, household), it didn´t change a thing. That is why unemployment is still high, GDP growth is sluggish.
The current administration (imho) is not to be blamed for the QE stuff. But they are resposible for not changing the economic guidelines (or the lack of), it is still all "laissez faire". But then, sad part of the story: The GOP seems to be even worse in this aspect.
HUBBERS
''The real reason that the US economy is so bad ''
An update on the coming elections.
4/15/12
Obama chief strategist David Axelrod
Live and uncut, scare tactics?
http://www.foxnews.com/on-air/fox-news-sunday/inde/v/1563643318001/is-president-obama-vulnerable/?playlist_id=86913
This Week on CBS
the Ryan budget by Congressman Van Hollen
http://republicanredefined.com/2012/04/01/contrast
The President's Speech Distorts the Truth to Distract From His Failed Record
http://www.facebook.com/notes/paul-ryan/the-presid
BE THE JUDGE!
HUBBERS
Where are the jobs?
5/09/12
Obamacare, Taxing jobs out of existence
WHY are companies not hiring?
http://www.humanevents.com/article.php?id=51364
The article speaks for itself.
Stump Parrish Level 2 Commenter 10 months ago
I agree with most of this but a portion of the problems we face are also because of the democrats in DC. The entire political process has allowed those in congress on both sides to line their pockets at our expense. Both sides of the aisle are more interested in keeping their job than they are about doing their job. I believe that the Dems had no problem voting themselves a pay raise while the country struggles. I am in no way taking any of the blame from the Repubs. I am simply stating that the dems do their part as well. I fully agree that the majority of our problems are a result of the GOP selling out to those who were willing to pay the most. I agree that things came to a head under the corrupt leadership of Cheney and Bush. The wars they started for profit are a huge part of the problem we face today. It is amazing that they feel we can't feed or educate our children but have unlimited resources available to kill innocent women and children around the world. I am beginning to hope that the Repubs follow thru with their promise to shut the government down if the Dems demand that taxes be raised on those the GOP caters to. The GOP has been systematically and deliberately destroying this country since 1981. In 6 short years under Reagan they took us from being the world's largest creditor nation to the world's largest debtor nation. They still maintain that we need to revert to the policies of Reagan and Bush that got us into this mess. One of Reagan's first actions was to cut the taxes on the wealthy. With in a year he saw the disasterous results of this and raised taxes 11 times in an effort to repair the damage he did. They have been pushing for more and more of the very actions that are causing this country most of it's problems. They have no interest in anyone but those who keep them bought and paid for. They have even managed to buy a majority of our Supreme Court Justices and are using them to take our rights while granting them to the corporate interests that control them. They are willing to let the majority of this country starve and die (healthcare) in order to keep their masters happy.