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November 6, 2005

The economic bell tolls. Does it toll for thee?

-- by Gary Boatwright

Very likely, unless you are among America's richest 1% (Annual income over $870,000). Is the economic glass half full, or half empty? Two recent stories in the L.A. Times help answer that question.

Economic Data Lift Stocks: Productivity and retail sales figures cheer investors. But a rise in oil prices eats into some of the market's gains

"That's a lot of good news that's driving the market today," said Hugh Johnson, chief investment officer at Johnson Illington Advisers. "But … who knows what the market will tell us tomorrow? It's been an on-again, off-again market. Today it's on again."

The Dow Jones industrial average rose 49.86 points, or 0.5%, to 10,522.59

Bush and his supply side economic policies have not been good to the stock market.

Update: 10:30 a.m. PST. Added link about income inequality.

Bush's economic policies have helped a few folks. Productivity Costs Up, Labor Costs Drop : Third-quarter data beat expectations, but the fact that wages trail inflation may be making workers uneasy.

For the 90% of Americans who work for a living the economic growth under Bush's leadership has been a complete bust:

For many companies, boosting productivity while managing labor costs — often through better technology, workplace changes or outsourcing — is a necessity to compete against lower-cost foreign and U.S. rivals. It's not just a mantra for high-cost, old-line industries such as airlines or automakers. In Silicon Valley, state-of-the-art technology companies are producing more to meet increasing orders, but employment growth in the region has been anemic.

Strong productivity gains normally could support higher wages. But although growth in overall compensation — wages and benefits together — has surpassed inflation, wage boosts alone have not. That could help explain why surveys show that many workers are unsettled about the economy, even though it is growing at an above-average pace, analysts say.

Bush's tax cuts and Bush's economic policies work very well for the people on this list. Not so well for the rest of us.

Posted by Gary Boatwright at November 6, 2005 8:53 AM

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Comments

This is the natural consequence of an interest-based economic system--massive redistribution of money from the working class to the idle rich.

There's no way around it within the system. To enable working class families to survive and thrive you must change the system. There is no other way.

Posted by: qrswave at November 6, 2005 4:11 PM

Posted by: Gary Boatwright [TypeKey Profile Page] at November 6, 2005 4:22 PM

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