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« X-Prize Mulled For Manned Orbital Flight | Main | Will White Flags Cow Liberal Peace Warriors? »
December 09, 2005

MSNBC Notes Economy Is "Galloping"

But what's this? Listen closely for the dog that doesn't bark:

MUCH OF THAT STRENGTH, surprisingly enough, will be concentrated in the consumer sector, which has weathered the shocks of 2005. The GDP revisions show real consumer spending increased at an annual rate of 4.2% in the third quarter. That's better than the 3.9% pace previously estimated, and it occurred during a quarter when gasoline prices hit more than $3 per gallon.

...

One reason consumers may be willing to spend is because they are feeling more optimistic about the economy. The Conference Board's index of consumer confidence jumped to 98.9 in November from 85.2 in October. The nearly 14-point gain was the biggest increase in 2 1/2 years. The indexes covering current economic conditions and consumers' assessment for the next six months both rose sharply.

The board attributed the upbeat sentiments to a more than 40 cents drop in the price of a gallon of gas and better job growth. Fewer households rated jobs as "hard to get" in November. By the end of the month, regular gasoline had dropped to an average of $2.15 nationally, and it had dipped below $2 in some parts of the country.

BESIDES THE GAIN IN INCOME resulting from better job growth, households are also benefiting from the recent rally in the bond market....

Notice anything missing? Well, let's continue. You'll see it.

...

CONSUMERS AREN'T CARRYING this economy alone, though. Businesses are also contributing more to growth than they did in previous years. According to the new GDP data, inventories fell by the biggest amount since the 2001 recession. Rebuilding stockpiles will require more gains in production in coming months. And business investment in plant and equipment remains strong.

In particular, equipment outlays grew at a 10.8% rate in the third quarter, up from the original estimate of 8.9%. The pace could be even faster this quarter, based on the October rebound in capital-goods orders and shipments, after being depressed in September by the hurricanes and the strike at Boeing Co. (BA) Even excluding aircraft, equipment orders continue their steady uptrend.

Easy access to money, whether from good profits growth, abundant cash flow, or cheap borrowing costs, has enabled companies to boost their capital spending budgets....

So: Consumers and businesses are both spending more money.

Why should that be, I wonder? The article does mention several factors, each of which doubtless contributes to "extra bonus magic-dollars" floating around in the economy.

But it seems to miss one factor. It names each and every conceivable factor except this one.

Anyone? Anyone?

Anyone?

Anyone seen this before? The Laffer Curve. Anyone know what this says? It says that at this point on the revenue curve, you will get exactly the same amount of revenue as at this point. This is very controversial. Does anyone know what Vice President Bush called this in 1980? Anyone? Something-d-o-o economics. "Voodoo" economics.

Anyone?


Voodoo economics?

Buehler?


posted by Ace at 01:47 AM
Comments



Is it the Smoot-Hawley Tariff Act? :-)

Posted by: Jason in TX-07 on December 9, 2005 01:50 AM

[Drooling, smacking gum, falls asleep on desk]

Posted by: Feisty on December 9, 2005 01:52 AM

honest, folks, that's pretty much all she ever does when I go over to her trailer.

at least now she's wearing clothes.

Posted by: MacStansbury on December 9, 2005 01:57 AM

Jesus, Ace, you've been posting like a hopped-up vervet monkey with a raging hard-on for the last few hours.

The cocaine must be good.

Posted by: Russell Wardlow on December 9, 2005 02:01 AM

I just got off the phone with my medical contact...she says it's Meth. she sounds like she knows what she's talking about.

Posted by: MacStansbury on December 9, 2005 02:18 AM

I heard Alan Greenspan is going to donate his eyes to Stevie Wonder.

Posted by: sentinel on December 9, 2005 06:20 AM

Does anyone know what Vice President Bush called this in 1980?

The vice president in 1980 was Walter Mondale. I know you'd like to forget (wouldn't we all) that America could ever elect a limp-wristed ticket like Carter-Mondale, but you can't change history.

Unless you're a liberal historian, that is. In that case, hey, go nuts.

Posted by: Anal Retentive on December 9, 2005 06:23 AM

Malaise.

Posted by: tefta on December 9, 2005 06:47 AM

Um, Anal, Ben Stein made that statement in 1986...

Hmmm, I wonder if Stein is still a Keynesian?

Posted by: JFH on December 9, 2005 07:50 AM

well, with debates raging about extending tax cuts right now, that'd be my guess as to what's missing

but I'll go read the article to see if I'm right

Posted by: Dave in Texas on December 9, 2005 08:56 AM

When Cameron was in Egypt land.... let my Cameron go!

Posted by: Harry Callahan on December 9, 2005 08:56 AM

Anal -

Vice President Bush made that statement when he was running against Reagan in the primary in 1980. He wasn't Vice President when he said it, but was Vice President when the question was asked of Ferris Buehler. So, it was correct to refer to him as "Vice President Bush".

Posted by: Vanilla thunder on December 9, 2005 08:58 AM

*removing plastic from boxy, asymmetrical pink-and-black checkered 80's style, totally bitchin' shirt that's been in the back of my closet for twenty years*

Posted by: lauraw on December 9, 2005 09:48 AM

Honey?

Where's my skinny leather tie??

Posted by: Monkeyboy on December 9, 2005 10:08 AM

The Laffer Curve. That guy is a genius and its always fun trying to explain economics to liberals.

I just wish I could find the original quote from Uncle Hillary that Bush's tax cuts would lead to the next great depression (maybe for her).

Posted by: joeindc44 on December 9, 2005 10:45 AM

Ben Stein said that about 1980. Bush WAS Vice President at the time.

I suppose he should have called him "CURRENT vice president," but at the time, it was understood.

Posted by: ace on December 9, 2005 10:45 AM

Well, I guess BushHW was right all along. This debate need go no further to some primary line thrown out in 1980. JFK, Reagan and BushtheW, who have all had success with tax cuts, are wrong.

All we need to do is invent some new industry, claim that economies of scale will make everyone rich. Set up a speculative bubble based on ideas like pimentoloaf.com and let the good times roll. That's the key to economic growth.

Posted by: joeindc44 on December 9, 2005 10:49 AM

a REAL GREAT ECONOMY MUST BE A MIND BLOWER FOR THE LIBERALS ESPEIALY FOR THE LIBERAL NLEFT-WING NEWS MEDIA

Posted by: spurwing plover on December 9, 2005 10:49 AM

Sweet! I can pull out the leg warmers!

Posted by: Sue Dohnim on December 9, 2005 10:58 AM

They're not just for dancers, you know!

Posted by: lauraw on December 9, 2005 11:28 AM

*teases hair into a big, happy pouf and applies large floppy bow-clip*

Posted by: lauraw on December 9, 2005 11:29 AM

Consumer confidence numbers were released today by the University of Michigan and they exceeded the median expectations. This is very good news but hidden in today's numbers is--no, not a floater in the punchbowl-- the news that home prices are easing. Not plummeting as we have all feared, but easing as we knew they must.

I cannot stress too much what very good news that is. The one asset that has inflated to the degree stocks did during the Clinton Economic Miracle is real estate. It appears this economy is not built upon a house of cards but on consumer and business optimism and liquidity.

Cowbell is called for, as well as mulled cider. And let also meats and cheeses be laid throughout the land.

Posted by: spongeworthy on December 9, 2005 11:37 AM

The Dems want so, so badly to turn W's presidency into a remake of the Sixties, starring Chimpie McHitlerburton as Lyndon Milhous Nixon. Then they can segue smoothly into the Carter-era Seventies, complete with invertebrate foreign policy and a gut-shot economy.

Two of the suckiest eras ever in American history. I'll take a replay of the Eighties in a heartbeat. I knew that Members Only jacket was going to come in handy...

Posted by: utron on December 9, 2005 11:55 AM

Where the hell did I put thos Chuck Taylors, the Izod shirt, and narrow cuff jeans?

Posted by: Brian B on December 9, 2005 12:05 PM

And this time, Neil Young is too fucking old to pop up and ruin everything with his 'grunge' bullshit.

We're all gonna look so nice.

Posted by: lauraw on December 9, 2005 12:09 PM

How drunk was Ace when he wrote this?

Posted by: Sean on December 9, 2005 12:47 PM

Does anyone have any Hillary quotes that Bush's tax cuts would lead to the next great depression (maybe for her). I recall that a couple of people made such a statement. Its about time to drag those comments into the light too.

Posted by: joeindc44 on December 9, 2005 02:05 PM
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