There is No Such Thing as a “Boom Economy”
During the President Obama years, the “slow recovery” was widely criticized, especially by Republicans. Remember those days of 1 percent inflation and consistent growth in virtually all economic sectors?
How soon so many forget.
Never mind that under Obama unemployment dropped from 10 percent and was nearly cut in half to 5.6 percent. Never mind that under Obama, the stock market (DJIA) tripled. Never mind that under Obama, the United States enjoyed 75 consecutive months of growth. The free-market true believers bitched and moaned that the U.S. economy “wasn’t growing fast enough.”
Well, bullshit. Hello? Can you hear me now?
I’m no fan of capitalism, but slow, steady economic growth *works.* It works for the greatest number of people. That’s a fact. Cutting taxes for the wealthy and letting corporations slide on taxes hurts the working class. As the Republicans’ tax cuts of 2003 and 2017 showed, there is no “trickle-down” effect. Coking up the economy with steroids is dangerous. After the crack pipe wears off, the hangover is a bitch. And that’s been the case of every Republican “boom” cycle — always followed by depression (1929), a recession (1987), or a global economic crisis (2008). The Laffer economic playbook should be burned.
Notice that every rapid “boom” economic cycle is ALWAYS followed by a crash and burn? Notice that stock market gains always end with a “correction.” This is American history. It’s Economics 101. Please–stop with the platitudes about “the greatest economy in history,” or boasting about “the highest stock market ever.” It’s always temporary, and it means nothing — except for the few who ride in the saddle for a short period and take advantage of the short-term fluctuation.
Slow, steady economic growth works. Sure, there are serious concerns about perpetual economic inequity in America, especially as the working class continues falling further and farther behind, and real estate prices soar. That’s a bad thing. But wages going up is certainly a good thing for most people, even with a spike in inflation, which is temporary. Note that inflation isn’t an American thing, it’s a global thing. Russia’s inflation rate is higher, but no one seems to be calling for Vladimir Putin’s job.
It’s time to put economics in proper perspective and quit with the incessant cheerleading. A boring, slow but steady economy, with a marginal inflation rate, is the best thing for the most number of people. That should be our objective.
Boring is good.