No Recession? Time to Pick up a Paper

President Bush is saying that the U.S. isn’t heading toward a recession.

WASHINGTON – President Bush said Thursday that the country is not headed into a recession and, despite expressing concern about slowing economic growth, rejected for now any additional stimulus efforts. “We’ve acted robustly,” he said.

“We’ll see the effects of this pro-growth package,” Bush told reporters at a White House news conference, acknowledging that some lawmakers already are talking about a second stimulus package. “Why don’t we let stimulus package one, which seemed like a good idea at the time, have a chance to kick in?”

The article goes on to say that Bush’s stance is “decidedly rosier than that of many economists, who say the country is nearing recession territory or may already be there.” Of course, the housing market is not only in a slump, but falling into a pit, the job market is stagnant, inflation is going over 4% and gas is expected to jump above $4 a gallon this summer. But that’s not bad news, is it, Mr. President?

There’s a certain stink around his little assurances. Something that will take more than air purifiers to get rid of. The people on the ground, those that don’t live in mansions and/or have a couple of “decent” vacation homes, are feeling the pinch. Once they start getting squeezed, the economy is going to get worse.[source] No recession?

As a completely ancedotal example: One year ago I paid 89¢ for a dozen of medium eggs. Now they are closing in on $2 a dozen. Eggs. Bread, milk, cheese and other staples have risen just as much. The only things that haven’t risen in our household are the paychecks.

He goes on to tout his plan to boost the economy by giving families as much as $1,200 in the form of a tax rebate. This should give some people some relief. But the fact is, many people are so far in debt that the $1,200 isn’t going to go very far. It may pay on month’s mortgage/rent, or a medical bill, or even the balance due on a utility bill (our own natural gas heating bill is above $400 for one month). But it’s not going to be a windfall that Bush is making it sound like. How much can $1,200 for a family of 4 really go when money is tight? How much of a boost is the economy going to see?

So, what did Bush have to say about the rising gas prices?

That’s interesting. I hadn’t heard that. … I know it’s high now.

Heh.

I realize that the president has admitted in the past that he doesn’t read newspapers. But maybe he could pay someone to read them for him. Or maybe he can just skim the headlines. He should learn not to trust his aides to give him all the facts. He’s batting for the Republican nominee at this point and he’s floundering.

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