Gross Domestic Product grew by a pathetic (downward revised) 1.6 percent in the second quarter. This means we are not technically in a recession, but as Paul Krugman aptly put it today, “so what.” Given that we are a country with a growing population, we would need 2.5 percent growth just to keep unemployment stable. (On a side note, I think it is time to change the official definition of a recession to take into account the rate of population growth.) We are not in a recovery, and the latest poll from CBS News shows people are growing more, not less, pessimistic about the economy. While there are a lot of causes that should be blamed for this downturn, history has shown voters tend to blame the party in power, which in this case is the Democrats.
The poll found that only 20 percent think the economy is getting better while 34 percent think it is getting worse. That is a significant increase in pessimism from only a month ago when it was 25 percent better, 26 percent worse. What is much more concerning than momentary pessimism about what is clearly a bad economy right now is the destruction of hope. While 59 percent think the economy will eventually recover, an amazingly high 37 percent think the downturn is part of a permanent decline. These are numbers that approach a serious self-fulfilling prophesy of doom (i.e. the paradox of thrift). Half the country, 52 percent, thinks the effects of this rescission will last more than two years.
Not only are people pessimistic about the overall economy, they have a strong sense that the deck is stacked against regular people. The poll found only 35 percent of Americans think everyone has a fair chance to get ahead, while 62 percent believe that only a few people at the top that have a chance to prosper in today’s economy. Combined, these numbers paint a picture of an incredibly unhopeful country that doesn’t think change is possible. For a president and a party that tried to brand themselves as the embodiment of hope and the agents of change, these are bad numbers.
The economy is growing very slowly, but, most importantly from a political perspective, regular people feel it is getting worse. The voters are naturally going to blame the party in power, Democrats, for the economic failings. This should be terrifying to elected Democrats because it looks, as we approach November, that there are likely to be more and more, not fewer, voters who feel the economy is getting worse. November could be even worse than the poll currently indicates.
Yet, as the economy stagnates and Senate Dems re-election prospects evaporate around them, do they rush to pass grand, WPA-style direct employment legislation to deal with the lack of jobs, or legislation to provide real relief for homeowners who were not helped by the ineffective, illiberal HAMP program (which has proven to be the Obama administration’s way of slighting homeowners to help banks profit)? No, because that would require dealing with the silly, broken, made-up rules and “traditions” of their chamber. That would bring accountability to the Senate, which is the one thing they fear most of all.
Instead, Democrats will blame the mean old, tiny Senate Republican minority, pretending the Majority’s hands are tied while obscuring their own failings by screaming about how crazy the new crop of Republican candidates are. (By the way, that part is true.–this new crop of Republicans hold some scary positions.)
After so closely watching Washington politicians argue like children, and line their donors’ pockets through technically legal corporate welfare programs, while generally ignoring the huge economic crisis at hand, I can’t blame any American for a lack of hope right now.



33 Comments
Do you mean “recession”?
Nice piece, even if grim subject.
Terrified? Why? Terrified that they will lose the election and be sent home to take a lobbyist sponsored consulting position at 3 times their Congressional salary? Would you be terrified at that prospect? Modern politics is a no terror proposition. No party really loses. Only we do.
No, it’s rescission — rescission of the middle class!
And what’s the difference between un-hopeful and realistic, anyway?
It is SO over for the little people.
Why are we still talking about a ‘double dip’ recession…? We never even went up to create the double dip…! WTF…? Ain’t shirt a’werking…! Big Ben offered up mere baubles…! Of course they’re gonna git hammered…! I agree with Boner err Boehner… Sack the entire Econ ‘Brain Trust’…! *gah*
The middle class is expendable.
Sad. Republicans created this mess, and then…unbelievably, Democrats failed to clean it up. Jesus, this was written in the stars the moment Obama went for a too small stimulus with an emphasis on tax cuts. I don’t blame the voters for their angst. Unfortunately, the Republicans are never, ever going to work to improve the economy for the little guy. It’s just going to get worse.
as I said from the very start, before the president even got his tarp program approved;
“all we need are some help wanted signs”
that’s all he had to do to fix this economy, put people back to work with public sector jobs, let us know if we lost a job there would still be gainful employment
once we know that we can spend with comfort, so long as there are no help wanted signs we cannot be responsible and still spend
even responsible republican economists are getting this
BRILLIANT!!!
we only pleaded with the administration to get this done, instead he listened to republicans and instituted trickle down economic policies, giving assets to the wealthy “hoping they hire”
now obama has an out though;
he can say;
“I believe it’s time for me to try a republican suggestion and start hiring people”
he won’t though, I believe he is an ideologue and actually believes in corporate power
If you listen to Barack Obama, he criticizes a “partisan Senate minority” for holding things up, forgetting to remind voters at every turn what dastardly party these bigots and filibusters and obstructors belong to.
I have dropped the “R” word in favor of the “D” word. It just seems closer to the mark to me.
I have long ago gone through the five stages of grief with this administration (denial lasted a month maybe, anger for a long time after they dropped the public option) and now “accept ” that it is an irredeemable failure. Time to move on, nothing to see here.
Now why in the hell would they feel that way? Gibbs thought we should all be drug tested because we thought that Canada’s medical system was a viable model. Obviously, those in charge would prefer an economy more like Mexico’s, or perhaps Chile under Pinochet.
Agreed change the definition of a recession Gambling, Beer, Porn and Tobacco sales are down before the recession the Stock Market guys on tv all swore that they were all recession proof industries but somehow those industries still suck so we should be in a depression but instead they call this a recovery?
Obama wants people to believe he’s a “moderate” what he doesn’t want them to know is that he means he’s a GOPer “moderate.” Keep up the good work Barry your destined to be a Carter 1 term President, just as your Corp. pals on Wall St. have planned for you.
He doesn’t need an out. He needs to grow a backbone. Plenty of Democrats have told him to do just that for a long time. Robert Reich, for one. Hell, Helen Thomas suggested direct WPA-style hiring when he first took office.
Wall St, vs Main St.
Wall St. wins everytime
that was a proven winner,he did Not want to win
Until the Parasite finally kills the host then its what happened to the Maya/Americans time.
Let the Republicans work their magic. After 2 years maybe the U.S. public will be in the streets chasing down plutocrats of both parties to administer justice.
As I’ve been saying, Obama will be the last moderate Republican president.
Obama still sees the Republicans as the “loyal” opposition. He shares their loyalty to corporatism so he can never see them for the threat and the villains they are for he in effect is one of them.
Only those who are paying attention.
Teddy some of ‘em are in his own party.Seems to me if he had the gumption to do the “right thing”,call out even those in his own party who were obstructing a progressive agenda,the people would have been there with him.
But Obama had no intention of changing anything…..instead he lectured us on turning the page…..funny thing is,the page hasn’t even been turned….the same corrupt practices with regards to Corporations are still in place.
WH hasn’t misjudged the situation,The Prez is doing exactly what he wanted…..Just look at the people who he has surrounded himself with..Emanuel,Summers,& Rubin…..None of ‘em known for anything remarkable in terms of doing for ordinary Americans….They are Corporatists and the Corporations have been the winners.
Blue,that how I see it….unfortunately more harm will come but only then will the change appear.
Very sad..but it’s the only way.
The rest of them are nothing but frogs sitting in the pot as the water temperature rises.
Well, we can only hope that will be the result.
Knocking down the veritable gates of those ‘gated communities’…! 8-(
Let’s imagine the discussion at the White House November 3, 2010. Six senate seats and 24 house seats lost to the Republicans, national voter turnout of 37%. First up on today’s agenda, accepting the resignations of Larry Summers and Tim Geithner. Second item, how to spend the next two years of congressional gridlock and low economic growth?
Or not. Obama has about six weeks to shake-up his econ team and open a tanker-load of whupass on his critics.
Now why in the hell would they feel that way? Gibbs thought we should all be drug tested because we thought that Canada’s medical system was a viable model. Obviously, those in charge would prefer an economy more like Mexico’s, or perhaps Chile under Pinochet.
Its worse than you think. Mexico and Chile would be an improvement.
Argentina, Brazil (see below), Canada (see below), Chile, Costa Rica, Cuba, Mexico (see below), Panama, Peru (see below), Uruguay, Trinidad and Tobago and Venezuela all have public universal health care provided.
http://en.wikipedia.org/wiki/Universal_health_care
Nobody of either party not on the AHIP payroll likes the insurance mandate, If House Democrats had any sense they’d run against it.
“Replace the mandate with Medicare.”
No that’s too complicated! Lets run more ads advocating the benefits of a healthcare reform law that delayed its “universal coverage” commencement date for 3 years, 10 months. That’s longer than the period between Pearl Harbor and the end of World War II (3 years 8 months). By way of contrast, President Johnson signed the Medicare bill on July 30,1965. The President then personally enrolled the first Medicare beneficiary, a retiree by the name of Harry S Truman, the same day (0 years, 0 months).
Strong work idiots, enjoy working for Speaker Boehner.
obama needs and out because he’s not a democrat he’s a trojan horse republican, he doesn’t need to grow a backbone because he’s doing exactly what he’s been wanting to do, follow his corporate agenda
the out he needs is finding a way to tell himself he can do this and still be the concervative he imagines he is
yes Obama is a Trojan Horse
We Progressive must define the difference between FDR, JFK, LBJ, democrats and Clinton, Obama Democrooks
FDR, JFk, LBJ, democrats are the largest part of the democratic base.
“Clinton, Obama, Democrooks are developed and maintained by the media own by rich republicans”
FDR, JFK, LBJ, democrats would have supported and fought for the public option
“Clinton, Obama democrooks hate the idea of the public option, they must make their masters richer”
FDR, JFK, LBJ, would have fought for unions and teachers
“Clinton, Obama democrooks hate unions and teachers, for example, Clinton, Obama support democrooks like Blanche Lincoln”
FDR, JFK, LBJ, would have pass a health care bill Ted Kennedy would have love!
“Clinton, Obama, democrooks passes a Bill written by Bob Dole a republican”
FDR, JFK, LBJ, would have put people on their economic team that could get us out of this new depression!
“Clinton, Obama democrooks put people on their economic team that cause the current depression”
FDR, JFK, LBJ, would never let the NSA spy on americans
“Clinton, Obama democrooks like Bush are all for letting the military of USA spy on americans”
FDR, JFk, LBJ, would have put people like Elizabeth Warren all over the Govt.
“Clinton, Obama democrooks are putting for Corporate Executives all over the Govt.”
FDR, JFK, LBJ, would have fought for the people of the Gulf of Mexico, they would have taken BP to the woodshed!
“Clinton, Obama democrooks help companies like BP cover up disasters”
Fact: the people of the Gulf now think Bush done a better job with Katrina, than Obama is doing with BP! who thought Bush would do something better than Obama? this says it all!
FDR, JFK, LBJ, would have embrace the base of democratic party, they would have loved FDL!
“Clinton, Obama, democrooks hate the base of democratic party, and love people like Alan Simpson”
FDR, JFK, LBJ, democrats would never think about cutting social security!
“Clinton, Obama democrooks can’t wait to destroy social security, medicare, medicade”
We progressives must stop thinking that, FDR, JFK, LBJ, democrats run the current Democratic Party, the party of FDR, JFK, LBJ, has been hijacked by some democrooks name Clinton, Obama!
Just a bunch of lying SOB’s, group them altogether. Dems didn’t do anything except temporary benefits. The Repub. play along, but nothing long lasting.
I want people to stop attacking Obama. Give the poor guy a break. He’s got two kids and never had a big money making career. It’s only fair that he do whatever is necessary to insure that he makes hundreds of millions of dollars after he leaves office. Christ, if it’s good enough for Clinton and Poppy Bush, we ought to rejoice that it’s good enough for Barry “Trojan Horse” Obama.
We need to respect the fact that he’s the greatest politician in American history. As my friend has noted, “No other President has ever combined such eloquence and rhetorical skills with such a complete lack of courage and principles.”
(A snark tag isn’t really necessary, is it?)