Thursday, July 10, 2008

Foot In Mouth Disease

What's going on this week? First Jesse Jackson, then Phil Gramm says this:
"You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.

"We've never been more dominant; we've never had more natural advantages than we have today," he said. "We have benefited greatly" from the globalization of the economy in the last 30 years.

Phil Gramm being a Republican from somewhere in the late Cretaceous period (I think he tried to run for President when I was like 10. Or maybe 6. I can't remember.) and now economic adviser to another Republican from somewhere in the late- I mean, the current Presidential nominee of the Republican Party, John McCain.

McCain has (wisely) disavowed the comments, but alas, too late. As with slip ups regarding testicles by Jesse Jackson, this won't stop all and sundry from jumping up and down on McCain's head and generally making fun of Phil Gramm for being massively out of touch.

So are we in a recession? Probably not. Technically, I think the definition is at least two quarters of negative growth. We've had tiny amounts of growth in the other direction though. Veeeeeery, veeeeery tiny, but growth nonetheless. Are we a nation of whiners? I think not. Way to be sensitive and aware of reality Phil. Buy gas lately? Tried to pay rent, bills and (eventually for me) student loans? How much did you make last year? Do tell, I'm interested in hearing all about it.

But, the economy is bad. No question. Do we whine more? I'm sure there's a study out there somewhere.

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