The lagging U.S. economy looms as election issue

[Omaha Steve]

http://www.thedailyreview.com/site/news.cfm?BRD=2276&dept_id=465724&newsid=19214924&PAG=461&rfi=9

01/20/2008

The vast array of economic data compiled by the federal government is extraordinary but, sometimes, unintentionally misleading. As data are compiled and compressed into averages, means and indexes, they sometimes lose their immediate relevance to individuals.

But the latest consumer price data released by the Bureau of Labor Statistics provide a clear picture of the plight facing American consumers as recession looms.

According to the bureau, inflation rose at a rate of 4.1 percent in 2007 while real wages increased by 0.9 percent. That in itself represents a substantial squeeze, but the real problem is in the details. The overall inflation statistic is an average derived from the costs of a wide range of goods and services that are not equal in importance to consumers. It includes a substantial increase in home heating costs for many Americans, for example, which is offset somewhat by a 1.4 percent reduction for domestic natural gas - scant comfort for those who use other fuels.

Consumers also faced soaring costs for basic staples, such as bread and milk, which have a greater impact than increases in some other areas. They also faced more than 10 percent increases in health insurance costs and nearly 6 percent increases in actual medical care.

Compounding those problems is that the reported rates of increase are annual averages. So the price of gasoline rose 8.2 percent for the year but 30 percent for the last quarter alone. That latter number is the one that most affects consumers.

The numbers make clear that the economy is going to be the chief issue in the upcoming congressional and presidential elections. And they point to the need for systemic economic improvement in terms of better jobs, energy development and health care reform, rather than any quick-fix, short-term remedies to guide politicians past the next election.

[Tuesday Afternoon]

1. K&R

before it drops off the page.

[Viva_La_Revolution]

2. ditto. nt

[stravu9]

3. The Middle Class is Disappearing , Fading Fast...

People who live paycheck to paycheck are 1 disaster away from sitting across the desk from me at the Social Services Office!
Families whose major bread winner is laid off because of Factory closures come in at first for food stamps, then it's Medical Assistance for the kids. Then the Unemployment Compensation runs out and they need cash assistance, or Dad gets sick or is injured and the adults don't HAVE insurance, or Grandma has to go to the Nursing Home but the state wants to empty her bank accts. and cash in any savings she has first or they want to take her house, which is all she had to leave her family.
EVERY BLOODY DAY I SEE THIS AND WORSE!

[Cha]

4. I heard from a co-worker

cause I don't watch m$$$m that the lawmakers were considering giving an $800 rebate to everyone who made under the amount that they deemed necessary? ..to jump start the economy! It's not like our treasury isn't busted.

[stravu9]

6. look to the Federal Reserve

always putting the rich guy 1st!

[Omaha Steve]

9. If they keep it below a certain income level like say $250,000

I'm ok with that. I heard it too.

[Cha]

10. Thanks, I wouldn't think anyone making

over $250, 000 would need it..just more tax cuts.

I wouldn't mind having an extra $800 to pay bills with if it's not going to screw things up further.

[Omaha Steve]

5. Kick

This already slipped to page two?

[Cha]

8. We could talk about

my question:)

[OhioChick]

7. K&R

:kick:

[saltpoint]

11. Excellent post. Thank you.