Home
In this issue
December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review June 9, 2010 / 27 Sivan 5770

Here Comes the Double-Dip Recession

By Dick Morris And Eileen McGann




http://www.JewishWorldReview.com | The drop in the stock market (now about 1,000 points on the Dow) is a graphic indication of the stark fact that we are entering the infamous double dip of the recession, long feared and predicted. The economy is not in a V after all (down and then up) but in a W (down, up, down again and then, finally, up). And the cause of the second dip is not the recession itself, but the cure administered to it by President Obama and the Democratic Congress.

Consider the indications (data provided by New America Foundation, analysis by Sherle R. Schwanninger and Samuel Sherraden):

— Gross domestic product growth has only been 2.2 percent, 5.6 percent and 3.2 percent for each of the last three quarters, well below the rebounds typical in past recessions.

— Total civilian employment has rebounded by only 1 percent since the depth of the unemployment five months ago. In 1973, at a comparable point, it had rebounded by 7 percent. In 1981, by 8 percent. In 1990, by 4 percent. And in 2001, by 3 percent. U-6, the broadest measure of unemployment, stands at 17.1 percent

— Housing prices have dropped by 30 percent since 2006, and "many economists expect housing prices to decline at least another 10 percent," according to Schwanninger and Sherraden.

— While corporate profits are 30.6 percent higher than one year ago, wages are up by only 1.6 percent, less than half their rate of increase two years ago.

— Financial sector profits make up 35.7 percent of all domestic corporate profits. These gains are driven by trading revenue, which does not reflect real economic growth. Schwanninger and Sherraden report, "In the first quarter of 2010, Goldman Sachs, Morgan Stanley and Bank of America earned 72 percent, 45 percent and 16 percent of their net revenue (respectively) from trading profits."

— Personal savings dropped from a high of almost 6 percent to 2.7 percent in March, 2010, so households have cut their debt by just $300 billion since it peaked in 2008. So household debt, which rose from 60 percent of GDP in 1990 to almost 100 percent in 2008, has only dropped to 97 percent. It has a long, long way to go before it goes down enough to free consumers to spend more.

— Meanwhile, retail sales have averaged only a 1.7 percent increase over the past three quarters, half of which was merely to restock inventories. Schwanninger and Sherraden note that "in a typical recovery, the rebound is closer to 3.5 percent." And most of that increase is due to expanding government cash transfer payments, which now make up 18.3 percent of personal income. "Excluding transfer payments, personal income increased just 0.3 percent since the third quarter of 2009."

— And stimulus spending, which has failed to generate private sector growth, is now winding down. Only 43 percent of the tax benefits and entitlement spending remain to be doled out, as does 63 percent of the contracts, grants and loans in the stimulus package.

— The strengthening of the dollar due to the collapse of the euro will dry up U.S. export trade. Exports to EU nations account for 21 percent of American and 20 percent of Chinese exports. Schwanninger and Sherraden note that "a European slowdown will reduce demand for the two primary engines of world economic growth."

But this second downturn in the economy will be accompanied by inflation, making it worse than the first recession. With interest rates set to rise (because the fed is no longer massively purchasing securities to keep them down), taxes set to go up (because of Obama's ideology) and global energy use about to increase, sending prices higher (because the rest of the world is recovering), prices have to go up. But with no growth in real personal income and household credit close to all-time highs, there is not enough demand to pay the higher prices, so a deeper slump will ensue.

The solution? Cut — don't raise — taxes. And bring down the deficit through massive spending cuts. Reduce our borrowing needs by slashing our spending. Free up capital to feed job growth.

It should be evident to all that Obamanomics is a disaster. It reminds one of nothing so much as the Medieval practice of bleeding the patient to make him well by expelling the evil spirits that dwelt within. When the patient did not recover, they just bled him more and, when he died, they just said that the spirits killed him. The practice of spending, borrowing and then taxing to fuel job growth is the modern analogy.

=<<

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.



BUY THE BOOK

Click HERE to purchase it at a discount. (Sales help fund JWR.).


Comment by clicking here.



Dick Morris Archives


© 2009, Dick Morris

Columnists

Toons

Lifestyles