The US Economy

timber, I don't think myself as a pessimist; there's nothing to gain by it. I try to evaluate how our economy will perform for the short term and the long term, because I need to protect our retirement investments. Done pretty well, too! Do you remember what the average investor lost in 1998, 1999, 2000, 2001, and 2002? I retired in 1998, and we're still ahead on our investments. I'm not sure too many people can claim the same.

I am very much afraid that some of the arguments on the left, like those offered by Mamajuana concerning economics reveal that the leftists left all of their brains with the deitrus of the Marxian Economic machine which lost its engine and all of its wheels in the early nineties.

If I'm not mistaken, the Euro countries unemployment rate is above 9 percent. As for Japan, they've been in a recession for over 13 years.

I think that the Marxist professors on the left and the know nothings from Europe have neglected to study the US Economic system.
The posting of arguments without evidence, as is noted frequently, does nothing to advance an already weak argument from the left.

Let us look at facts instead of empty socialistic rhetoric.

source- Business Week -6/14/2002

The recession during the presidency of George Bush officially ended in March of 1991.

At that time, unemployment had reached a level of 6.8%

The unemployment level was still at 7.8% in June 1992 despite the change of leadership. At that time, the greatest economic genius the presidency had ever seen, Bill Clinton, had been unable in his first six months of office to turn the unemployment rate around.

The Unemployment rate did not drop below 6.7% until November 1993(THAT WAS 23 FULL MONTHS AFTER THE ECONOMIC GENIUS, BILL CLINTON HAD COME INTO THE PRESIDENCY. IT IS CLEAR THAT THE UNEMPLOYMENT RATE WAS

HIGHER

UNDER CLINTON FOR HIS FIRST TWO YEARS THAN IT IS NOW.(6.2%)

It is a shame that leftist college professors do not jettison the failed economic ideas of Communism and Socialism and do not come to the realization that the Unemployment Rate Average FOR THE LAST TWENTY YEARS IS

6.2%.

The same as it is now.

Of course, the left thinks this is horrible. The leftist professors and expatriates do not know that new technology has helped American workers to reach the astounding level of 6.8% productivity.

Since the arguments of the left are still mired in the useless Socialistic nonsense, they are unable to understand that higher productivity means that the same number of workers can produce 6.8% more goods.

The left will not and cannot rebut these facts.

Cicerone imposter- Sometimes you just have to be smart or read, read, read.

Note


"For example, a hjome buyer who put down %15,000 or 10% on a $150,000 row house in the nation's capital in 1998 would have realized a $122,100 gain- at least on paper --by the end of the second quarter of 2003. $150,000 times 0.814) That's more than an eightfold gross return on the buyer's investment in just 60 months"

Better yet: It's likely to be all tax free.

The pitiful jeremiads of the left wing are useless.

It is apparent that the Marxists do not understand that profits from property acquisition is also part of the economy and when the question- How is the economy is asked, it is well nigh imbecilic to leave out the billions of dollars that have been made by investors who have taken out money from the stock market( mainly in 2002) and applied that money to real estate investments.

You are indeed correct, Cicerone. The EU countries have a 9% Unemployment rate.

Some of this is due to the fact that a great deal of the Economy( especially in France) still operates under the old "Nationalization" system where the government owns many of the large enterprises- EG Railroads.

Italgato, I read plenty. We paid $50 thousand for our home in Silicon Valley back in the seventies. It's now worth over $700,000. My math isn't too bad yet. We also had income property that I sold right after I retired, because I didn't want to manage anything any more. More than doubled my investment, and earned rental income on it for many years.

First time, I really agree with you Italgato!

Every time, a "nationalized" industry gets privatized, unemployment rates go up.

Cicerone Imposter- You retired in 1998 and are still ahead on your investments. Congratualations.

Some of the Marxist/Socialists are suffering under the delusion that you don't have to take care of your investments and that you don't have to watch them since "daddy" government will take care of everything.

Do you realize, Cicerone Imposter, how many people withdrew money from their Market funds and purchased second homes and vacation homes in 2001 and 2002?

Those homes are increasing rapidly in value in most sections of the USA and, THERE IS NO BUBBLE IN SIGHT.

The truth is that the left ideology concerning Economics is a stupid ideology. Most of the world's leaders understand this. Unfortunately, some of our college professors don't and many of the East Coast parasites don't but most smart people do.

Mr. Hinteler:

Do you then agree that the system that the USA is utilizing, Dynamic Capitalism, is the best system for most of the world to adopt?

There are many problems but Mr. Friedman, the author of "The Lexus and the Olive Tree" points out that, as the world becomes more and more tied into the Internet, we can see how we live and work.

Friedman feels that the Internet will be a positive and important force in turning people towards a Capitalistic solution since the young especially view the USA and think, I want to be like them, or more significantly, I want to have what they have.

And the leaders then realize that the only way to do that( acceed to the desires of their young people) is to develop rules of law and financial system which will hook them into globalization.

No, I don't agree.

I'm more in favour of that system, what was called by the conservatives here in Europe -and what they created in post WWII times- namely "social market economy".

Congratulations _ Cicerone Imposter- Did you say you were Asian?

Chinese?

You know, of course, that one of your favorite authors( you said), Thomas Sowell, holds that Asians as a group have IQ's on average that are two or three points higher than Caucasians.

But that is not the important thing according to Sowell. The fact is, and perhaps you know this, CI, that, in Asia, despite the fact that the Chinese are discriminated against, de facto, and, yes, even de jure in some of the countries outside of China in the far East, the Chinese are still the most successful entreprenurial group in those countries.

I triumph of culture over bias.

Some of the so-called minorities in our country should take a lesson from the success of the Chinese who are discriminated agaiinst in the Far East but still do very very well- It's a matter of culture.

I know some Hispanics who have been in this country for years and still can do nothing but complain. They expect Uncle Sam to change their diapers.

Again, congratulations- CI.

OK Mr. Hinteler- Perhaps, sometime, when you have the inclination and the time, you can tell us why.

In the meantime, cheers.

Yes, Italgato, we're still ahead in our investments even though I travel around the world three times a year, and withdraw money for other living expenses. We don't need any more money, and the only property I want to own is our own home - which we do. Some people live to make money. I live to enjoy ours. Not rich, but comfortable enough to enjoy my style of life. Not too bad, considering we come from a very modest background. In many ways, I'm rich beyond my wildest dreams. I can travel to anywhere in this world I please, have relatively good health, good family, and good friends all around this planet.

Nevermind.

hobit, Isn't that the damnest thing; that I chose my own race and culture?
Italgato, I'm Japanese American, third generation. Our grandfather came to the US in 1893. Our family now includes Chinese, English, Italian, German, black, Hispanic, Polynesian, and I don't know what all. This all happened during my generation, so things have changed. I know two Chinese families in Singapore I consider my good friends. When we have our New Year's Day party at our home, most of the relatives that come over are Chinese. One of my closest and dearest friend was a Chinese who was born in Shanghai, educated in Tibet and India, but completed his college education in the US. He passed away last September at age 74, after a 44 year friendship.

Mr. Hinteler: I am sure that you know a thousand times more about the system you speak about- namely, the social market economy. But, in my notes, I found some material which is disturbing. You may wish to comment.

I read that Wilhlem Roekpke, who was supposed to be one of the founders of the social market economy idea, wrote that:
"The contrast between the production market and continuous redistribution of income for the sake of equality is intolerable in the long run".

My notes say that Germany has a near Zero growth rate(GDP) 10% Unemployment, and a staggering burden from its welfare obligations( sounds like the USA in this last item).

I understand that Germany's GDP rate growth rate has been the last for all the EU countries for the past three years.

It doesn't sound to me, Mr. Hinteler, that the Social Market Economy is doing very well. This is perhaps, just temporary????

CI - You must have a very nice house- Congratulations- Mine is only worth about $500,000. But I do have a condominium used in summer about a hundred miles away.

I am very happy with the American system. It has been good to me.

The Marxist professors I have encountered, however, are just a group of malcontents.

They are, in the words of William F. Buckley, consumed with self-hate which they reflexively turn against the world.

Italgato, Housing costs in Silicon Valley is one of the highest in the nation. Our home is not fancy, but comfortable - like me, but I'm a wee bit older.

I know costs are high in Silicon Valley but I am sure that it is in a much more beautiful area than Southern Wisconsin.