Since when?! Pt.2
One of these days I’m sure I will stop posting news articles and start posting my own ramblings again, however, this one is worth talking about for a while. The DNC would gladly have you believe that the economy is really in the dumps because of high oil costs, a War effort under way, and the loads of government corruption that the DNC is oh-so-delighted in finding when there is a Conservative administration in office. Myself, I find it interesting that our wealth per work hour was trailing France from 1994 (two years into Clinton’s administration) until 2003 (a little more than two years into Bush’s first administration). You can make your own conclusions, but I think the tax cuts were a good idea.
One thing that does worry me is the rate of inflation. Now, admittedly, the report the UN released was in US dollars, so we are safely in front of the EU, but I’m trying to figure out why the euro keeps appreciating in value, while the dollar keeps slipping… and the only thing I can pin it on is inflation. Now, as a guy who makes enough money to survive (for now) at an honest job, I would appreciate a decrease in inflation because my meager pay would be worth more. However, with recent rises in the minimum wage, I think drastic measures are not reasonable. For example, with the last proposed increase in the minimum wage, the retailer I worked for would have had to cut some 3300 hours per year from our location’s budget to stay at the same maturation level that they have currently. Since the goal is grow sales about 12% each year, if that same 12% gets completely eaten up in the wages budget it is worthless… breaking even shouldn’t be the goal of a company, it should be its requirement.
I guess the real question is, since when is the economy in the dumps? The DJIA is over 13,000 points… in the 90’s that was a “yeah, right” kind of dream that some investors had of somekind of distant future. We are the second highest producer per hour of wealth in the entire world. Unemployment is to the lowest levels in recent history (down around 4%). With most of the volatility in the stock market being blamed on fickle or cagey investors, crashes like that of the mortgage market or the hedge funds should be expected and prepared for. If everyone was being wise with their investments, stuff like that would not happen… too bad not everyone is wise, eh?