Falling dollar shifts economy

[UpInArms]

Source: The Associated Press

NEW YORK — During the Great Depression, New York's Mayor Fiorello LaGuardia dubbed the marble lions that frame the steps of the city's main library Patience and Fortitude - a reference to the strengths the city's denizens would need to survive the economic tumult.

Robert Brown, chief investment officer at Genworth Financial Asset Management, contends Americans eventually will need to call on those same attributes if the U.S. dollar continues to fall.

"The forces are so clear cut, so self-reinforcing," he said. "Nobody can figure out the timing."

While the economic shift likely would draw out some winners in the U.S. economy, such as companies that sell goods and services overseas, it also would likely sharply reduce America's purchasing power.

The dollar, which began to weaken broadly in early 2002, has fallen more than 50 percent from its October 2000 trading peak against the euro. It recently has come close to hitting its record low against the 13-nation currency and is near a 26-year low against the British pound.

Read more: http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20070422/BIZ/704220366/1005/biz

---

:scared:

[Deja Q]

1. That just means we have to make our own goods again.

= jobs.

[UpInArms]

2. hopefully that will be one side benefit -

the thing that bothers me the most is that we are now food insecure and a debtor nation.

[Vincardog]

4. Don't worry we have Wolfie at the World Bank to help us out.

[SpiralHawk]

13. "Don't worry, we'll find a way for fatcat republicon cronies to profit." - Commander AWOL

"Oh yeah, almost forgot the rest of the talking point:
tough shit for you noisy proles. Why don't you shut up and sit down."

- Kommander AWOL & the Chickenhawk Brigade of Kompassionate Konservatives

[Marblehead]

3. can you say

hyperinflation? We may be faced with bad times due to republican insane trade policies...

[Warpy]

5. It's also why we can kiss those $1.25/gallon gas prices goodbye.

So the transition won't be an easy one.

We really need a fundamental change of focus in this country away from the paranoia of the Cold War and pouring our wealth into a bloated military that squanders it on toys that are obsolete before they leave the drawing board and into our infrastructure and our future.

Maybe then we'll be ready to start manufacturing things the rest of the world wants to buy.

[Psephos]

23. Good - now there's far more incentive to move away from fossil fuels

Meanwhile, as for manufacturing, the US is still the No. 1 industrial economy in the world, based on value of industrial products. It's the second largest exporter, after Germany. Surprising, isn't it?

You could look it up. :-)

Peace.

[Warpy]

33. You could stand to look a few things up, too.

We no longer make cloth.

We no longer make shoes.

We make few electronics from the case up. Check the inside of you computer. The drives are most likely made by Misumi, certainly not in the US. We no longer make consumer electronics and much of our business electronics.

Our steel production is way down and would be gone if Congress hadn't gotten off its torpid ass and passed a little protectionism to save it.

We don't make many replacement parts for our cars. There's no longer any car that's 100% American made.

These are some pretty basic things, things we need to maintain ourselves from day to day.

If you want to see where the trade deficit has come from, look at just what we have offshored.

Peace.

[Psephos]

35. I did

We no longer make a lot of things in the U.S., because others are willing to make them less expensively. I'm not saying that's right or wrong, just saying it's true. An historian of economics can also tell you that's been true in the U.S. for two centuries. The U.S. historically has been an innovator, and as industries it has innovated mature, its economy moves on to the next thing.

We could reinstitute major tariffs to discourage imports of cheaper goods, in an attempt to restore primacy of American-made goods. That was tried in 1930 with the Hawley-Smoot tariffs, which at minimum, worsened the Great Depression. Some economists say it turned a "normal" depression into the Great Depression. One thing's certain, within a year, imports of foreign-made goods dropped by half. So did exports of American-made goods, as other countries retaliated with tariffs of their own.

http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff_Act

Let me ask you a question. What kind of car do you drive? Why? (It's not a trick question.)

Anyone in manufacturing can tell you why jobs get off-shored. Unfortunately, the reasons contradict many persons' political dogmas, so we hear all manner of Manichaean explanations instead. Excellence is not such a bad mantra for a country or a person, IMO.

There is only one way to reverse the trend of growing trade deficits, and that is for the US to de-emphasize economic activities in which it can't compete, and focus on being excellent in activities in which it can. The U.S. can and does compete well in manufacturing of sophisticated, narrow-sector goods (see Boeing or Caterpillar for examples) where cost of labor does not determine competitiveness of the goods. The U.S. can't compete in basic manufacturing such as textiles or steel, because labor costs ten times as much in North America as it does in Southeast Asia, and the relatively low-skill labor such industries require is essentially a global commodity. The Asians are also unburdened by environmental and employment regulations, unions, medical and pension costs, etc. I don't see how we're going to impose our laws, conceptions of economic fairness, and moral values on sovereign countries without invading them. That hasn't worked out well lately in other places. :-)

In personal life, trying to compensate for one's weaknesses never works out, while maximizing one's natural strengths does. I suggest we think that way nationally, as well as personally.

[AndyTiedye]

38. Aren't Most of those "Industrial Products" Weapons?

I'm pretty sure we make more weapons than any other country, but other than that, what have we got?

[stillcool]

41. We've got Prisons!!

A Report on the Injustice System in the USA
Written by: Pauline (a contributing writer to IPFG’s Publication; Payaam Fadaee)
Published in Payame Fadaee, Spring edition 2002

The US ruling class has established the largest forced labour sweatshop system in the world. There are now approximately 2 million inmates in US prisons compared to 1 million in 1994. These prisoners have become a source of billions of dollars in profits. In fact, the US has imprisoned a half million more people than in China which has 5 times the population. California alone has the biggest prison system in the Western industrialized world. It has more prisoners than France, Germany, Great Britain, Japan and Holland combined while these countries have 11 times the population of California. According to official figures, Iran incarcerates 220 citizens per 100,000, compared to US figures of 727. Overall, the total "criminal justice" system in the US, including those in prison, on parole and on probation, is approaching 6,000,000. In the last 20 years, 1000 new prisons have been built; yet they hold double their capacity.
Prisoners, 75% of who are either Black or Hispanic, are forced to work for 20 cents an hour, some even as low as 75 cents a day. They produce everything from eyewear and furniture to vehicle parts and computer software. This has lead to thousands of layoffs and the lowering of the overall wage scale of the entire working class. At Soledad Prison in California, prisoners produce work-shirts exported to Asia as well as El Salvadoran license plates more cheaply than in El Salvador, one of the poorest countries in the Western Hemisphere. A May/99 report in the Wall Street Journal summarized that while “more expensive private-sector workers may lose their jobs to prison labour, assigning work to the most cost-efficient producer is good for the economy.” The February/00 Wall Street Journal reported “Prisoners are excluded from employment calculation. And since most inmates are economically disadvantaged and unskilled, jailing so many people has effectively taken a big block of the nation's least-employable citizens out of the equation.”

Federal Prison Industries (FPI) whose trade name is UNICOR exports prisoner-made products as well as selling them to all federal agencies as required by federal law. FPI manufactures over 150 different products in 99 factories in 64 prisons (with 19 new ones on the way) in 30 states. It is the federal government's 35th largest contractor, just behind IBM and is exempt from any federal workplace regulations.
FPI's prison workforce produces 98% of the entire US market for equipment assembly services, 93% of paint and artist brushes, 92% of all kitchen assembly services, 46% of all personal armour, 36% of all household furnishings and 30% of all headset/microphone/speakers, etc. RW. Feb/00 FPI consistently advertises for companies "interested in leasing a ready-to-run prison industry" especially following congressional testimony in 1996 that reported a "pent-up demand for prison labour." Meanwhile, shareholders profiting from prison labour consistently lobby for the legislation of longer prison sentences in order to expand their workforce. At least 37 states have legalized the contracting out of prison labour to private corporations that have already set up operations inside state prisons. Prisons' business clients include: IBM, Boeing, Motorola Microsoft, AT&T Wireless, Texas Instruments, Dell, Compaq, Honeywell, Hewlett-Packard, Nortel, Lucent Technologies, 3Com, Intel, Northern Telecom, TWA, Nordstrom, Revlon, Macys, Pierre Cardin, Target Stores, etc.
http://www.ashrafdehghani.com/articles-english/on%20prison.htm

In 1985 one out of every 320 Americans were in jail.
In 1995 one out of every 167 Americans were in jail.
Between1980 and 1994, the number of people in federal and state prisons increased 221%.
Today, 2 million Americans are in prison.
1.2 million are African-American men.

While there is debate over their underlying causes, these staggering statistics are generally thought to result from rigid drug laws, mandatory minimum sentences and increasingly tough legislation— such as California’s "three strikes" law. One fact remains undisputed: prisons have become big business.

The Business of Prison Labor
A prison-industrial complex has emerged. The increased prison population, a strong economy and the tightest labor market in 30 years have given rise to prison privatization and the expanded use of prison labor. Big name corporations compete with each other to underwrite prison construction with private, tax-exempt bonds and without voter approval. More and more states across the country are implementing mandatory labor for inmates, necessitating partnerships with outside industry. These developments fuel a national debate over prison labor practices in the U.S.
-------------------
Prison Partners
In the tiny town of Lockhart, Texas a private prison run by Wakenhut (a for-profit private corporation) does business with a company called LTI. In this partnership the prisoners assemble circuit boards bound for hi-tech corporations. For LTI, moving manufacturing to the Lockhart prison was a no-brainer. There they found a captive workforce that did not require benefits or vacation pay, major tax incentives and a brand new assembly plant rented for only a symbolic fee. As a result, LTI’s plant in Austin, Texas was shut down and 150 people lost their jobs. In Michigan, through a similar arrangement, the majority of Brill Manufacturing Company’s workforce lost their jobs to state prison inmates.
http://www.itvs.org/shift/prison.html

This article can be found on the web at
http://www.thenation.com/doc/20051121/grossman
Toxic Recycling
by ELIZABETH GROSSMAN
from the November 21, 2005 issue
Research support for this article was provided by the Investigative Fund of The Nation Institute.

About ten miles northwest of Merced, amid the dairy farms and orchards of California's San Joaquin Valley, sits the Atwater Federal Penitentiary, its tower and low-slung buildings the same mustard yellow as the dry fields that stretch out beyond the chain-link fence and concertina wire toward the Sierra Nevadas. Inside this maximum-security prison, inmates smash computer monitors with hammers, releasing dust that contains lead, cadmium, barium and other toxic substances. These inmates are employed by the electronics recycling division of Federal Prison Industries (better known as UNICOR). With sales that have nearly tripled since 2002, electronics recycling is UNICOR's fastest-growing business. But according to reports from prisons where this work is being done and interviews with former inmates employed by UNICOR, it's taking place under conditions that pose serious hazards to prison staff and inmates--and, ultimately, to the rest of America and the world.
---------------
"UNICOR's program is labor intensive, so capital machinery and equipment expenses are minimized, this helps keep prices low," says a company brochure. With a captive workforce UNICOR's electronics recycling program can afford to be labor intensive. Because it is run by the Bureau of Prisons, UNICOR does not have to pay minimum wages--recent wages were $0.23 to $1.15 an hour--or provide benefits. Though UNICOR is not taxpayer supported, its pay scale would not be possible without taxpayer support of the inmates.
http://www.thenation.com/doc/20051121/grossman

Key financials for Federal Prison Industries, Inc.
Company Type Government Agency
Fiscal Year-End September
2005 Sales (mil.) $833.6
1-Year Sales Growth (5.2%)
2005 Net Income (mil.) $64.5
1-Year Net Income Growth 1.4%
2005 Employees 19,720
1-Year Employee Growth 2.0%
CEO Harley G. Lappin
COO Steve Schwalb
Controller Bruce Long
HARLEY G. LAPPIN
DIRECTOR
FEDERAL BUREAU OF PRISONS
Director of the Federal Bureau of Prisons on April 4, 2003. He is a career public administrator in the Federal Bureau of Prisons and the seventh Director of the Bureau since its establishment in 1930. He is responsible for the oversight and management of the Bureau’s 114 institutions and for the safety and security of the more than 193,500 inmates under the agency’s jurisdiction.

http://www.unicor.gov/

[loudsue]

42. Thank you for that great post....so true! But, your 1st link doesn't work.

The "privatized" prison system in the U.S. is one of the biggest, nastiest scandals of the republican take-over of America. I wish more people were educated about this farce/fiasco that has become the American "justice" system. It is insidious.

:kick::kick::kick:

[stillcool]

43. I think I fixed it...

but here she be...
http://www.ashrafdehghani.com/articles-english/on%20prison.htm
The other day I got to wondering why there were so many stories about youthful 'offenders' getting prison sentences. Particularly in Texas, where a young girl pushed a school monitor and got a sentence of years. I was amazed at what I found.

[loudsue]

45. Thanks! I'll go look again. Texas is the most obvious of all States, I think.

George bush leaves a disaster behind him every where he goes.

:kick::kick::kick:

[stillcool]

46. I thought so too...

but there's a slew of them...North Carolina was pretty impressive. They transfer prisoners between states as well, this Florida link has some info on that-
http://www.fcc.state.fl.us/fcc/reports/final97/97pie.html
Here's California's nice little map-

Prisoners Under State or Federal Jurisdiction
12/31/2004--U.S. Total ,"1,496,629"--Federal ,"180,328"--State ,"1,316,301"
http://www.ojp.usdoj.gov/bjs/abstract/p04.htm.
--Responsibility for sentenced felons was transferred to the Federal Bureau of Prisons.
------------------------------------

http://www.illuminati-news.com/pdf/prison_camps.pdf
Army Regulation 210–35
Installations
Civilian Inmate
Labor Program
AR 210–35
Civilian Inmate Labor Program
This rapid action revision dated 14 January 2005--
o Assigns responsibilities to Headquarters, Installation Management Agency
(para 1-4j).
o Makes administrative and editorial changes (throughout).
o Provides Army policy and guidance for establishing civilian inmate labor
programs and civilian prison camps on Army installations.
o Discusses sources of Federal and State civilian inmate labor.
------------------------------------------------------------
http://commdocs.house.gov/committees/edu/hedo&i6-133.000/hedo&i6-133.htm
FEDERAL PRISON INDUSTRIES: PROPOSED MILITARY CLOTHING PRODUCTION EXPANSION- ASSESSING EXISTING PROTECTIONS FOR WORKERS, BUSINESS, AND FPI’S FEDERAL AGENCY "CUSTOMERS"
HEARING BEFORE THE
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON EDUCATION AND THE WORKFORCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTH CONGRESS SECOND SESSION
HEARING HELD IN WASHINGTON, DC, OCTOBER 5, 2000

[Jemmons]

48. The US is one scary country! nt

[Javaman]

32. $1.25??? Heck you can kiss $2.50 gas good bye. nt

[CountAllVotes]

37. let's hope I am wrong but ...

I had a dream night before last. I was putting gasoline in my car and it was over $6.00 a gallon! :scared:

Many of my "dreams" tend to come true! Yikes!

:kick:

[AndyTiedye]

39. They Have Had Gas Prices Like That in Europe for Years

On the other hand, Europe has a good enough system of railroads so people don't really have to drive much.

We need a railroad system like that. Yesterday.

[Morgana LaFey]

52. DUE TO THE TAXES on their gas --

which is precisely what gives them the railroads and nice bike paths and such.

[anotherdrew]

6. what if capital flight hits too? Much of the big money will leave the US this time

and turn their remaining dollars into some other currency and take off for greener pastures. Maintaining our military at it's current level will become an impossibility, as will so many other things. This is the end-game the so-called 'conservatives' have been working towards for decades. The inevitable super-depression will give them their golden opportunity to reshape the cultural landscape around their remaining super-rich 'business men' and their church system, with the vast majority of people little better than serfs.

Not sure what's to be done now... is it too late to stop this train-wreck?

[barb162]

30. I think it's too late though I hope I am wrong.

This crap has been going on for decades now. I am surprised there hasn't been a recession yet or a depression

[Double T]

7. 'WE' have gone from 'Worth' to 'Worth Less' and are heading toward.......

a 'Worthless' American dollar. The cost of ALL goods will spiral upward as the dollar's value continues to decline. bushco economic policies have landed 'US' in this mess.

[xchrom]

8. this is going to be very interesting -- there is mounting pressure on the EU

to devalue it's currency. they're worried about their growth stumbling.

we have a falling dollar -- the chinese have yet to be motivated to do anything real with their currency.

it seems to be there is a global concern about currency values -- i used to sort of know what to think when it was just the dollar floating -- but this --

[JDPriestly]

9. The Republicans are bankrupt with regard to ideas and solutions.

It won't be long before another FDR arises from the Democratic ranks. It will be anyone but Hillary.

[Morgana LaFey]

51. I'm not at all sure this isn't part of their agenda

and quite intentional. So to say they are "bankrupt of ideas" is -- well, exactly what they'd prefer you to think if I'm right.

Edit: I should say: intentional on the part of the Bushies and their corporate masters, not necessarily ALL Republicans, altho they all do seem to enjoy those tax breaks, don't they?

[harun]

53. It is definately part of their agenda, look at the strength of the

dollar under Reagan/Bush, then under Clinton, then now. Easy to see the policy difference.

[JDPriestly]

10. We need to demand that the excessive war profits be disgorged,

returned to the American people and spent on development of alternative energy, public transportation, education, Social Security and universal health care.

[sakabatou]

11. Thank you, *.

:puke:

[DBoon]

12. The Republican agenda is a success!

The US is now becoming a 3rd world country!

Shrinking economy, insane inequality of wealth, authoritarian government, corruption, poor people living in cardboard boxes.

They've accomplished it all!

[whistle]

14. The dollar is falling because inflation is far worse than offical numbers

...show and the U.S. treasurery is allowing the private Central Banks to issue counterfeit money. Before Bush leaves office the U.S. dollar will become worthless!

[entanglement]

15. The tourism industry and exporters win - everyone else is "seriesly screwn"

n/t

[gravity]

16. The Euro is also getting stronger

The Euro took some time to establish itself as a stable currency, and once people gained confidence in it, it gained strength.

Also, a lower value of the dollar makes exports from the US more attractive, and makes it less likely for us to import goods. One of the problems with this area is that China is purposely devaluing it's own currency, so they can continure exporting to the United States.

While there are problems with our currency being devalued, it isn't the end of the world, and we are still far from a crash. The lower value of the dollar could help balance our trade, so it's not all that bad.

[microsrfr]

17. Multi-Trillion Dollar Deficits Toast Greenbacks

According to the 2006 GAO Financial Report for the US, which evaluates the federal budget according to general accounting principals, we had a $4.6 trillion dollar loss last year. This corresponds to over $2500 a month for every US worker. Clearly this is not sustainable. If not addressed, these losses will turn in to multi-trillion dollar yearly deficits and the US dollar will become worthless much like Germany in the 1920's.

Four trillion of last year's loss was attributable to increases in unfunded health-care and retirement expenses.

We can't inflate our way out of this because these are future expenses.

We can't tax our way out because there would be no money left to live on

So, we must find a way to reduce these health care and retirement expenses.

It is not feasible to "un-fund" these programs because it would result in riots in the streets. Every other industrialized country except South Africa provides universal health care for their citizens, even dictatorships. They don't do this out of the kindness of their hearts, they do it to keep their citizens stable.

It is not feasible to euthanize everyone who is retired and sickly for obvious moral reasons.

The only path left is to extend quality life span and quality career span. This means that people will pay into the system longer and take money out later. In today's economy there are many people who either desire or need to extend their working life. Unfortunately, the current private insurance system penalizes those employers who retain older workers. In fact, the average retirement age dropped from 67 years in 1950 to 62 years in 2000 -- probably because of employer health-care considerations.

Ironically, the one technology that has the greatest promise to extend quality lifespan and thereby dramatically reduce our projected deficits is stem cell therapy -- which of course GWB has promised to veto.

[UpInArms]

19. welcome to DU, microsrfr!

Great 1st post!

Glad to have you with us :hi:

[Lasher]

27. How about reducing military expenditures?

We currently spend almost as much on our military as the rest of the world combined. Maybe we should consider cutting back there before we start trimming health care and retirement programs.

And I think we could raise taxes and still have money left to live on. That's because the super-rich are paying taxes that are well below historical levels and it should be clear by now that this money hasn't trickled down to average Americans.

In fact, if we were to eliminate military expenses just for the wars in Iraq and Afghanistan, and if we were to rescind the 2001 & 2003 tax cuts that mostly benefitted rich people who do not need the extra money to live on, we would actually have a budget surplus.

Here, try it for yourself with the 2006 National Budget Simulation Game:

http://www.nathannewman.org/nbs/

[ryanmuegge]

36. Military force is all the US has left, though.

We can't compete in a global economy because don't produce anything and we're running a huge trade deficit.

Our military might is all that keeps us in our rapidly decaying role of global hegemon.

[philly_bob]

29. First post hall of fame. /nt

[VegasWolf]

18. Dick Cheney, two years ago, "Move a 100 million of my assets into euros NOW, the US dollar

is headed for the toilet!!!" Wow, Cheney knew exactly what he was talking about!

[Double T]

21. dick, you and your fraternal idiot are largely responsible for the US dollar........

going into the toilet; thanks to BOTH of YOU for flushing twice!

[DianaForRussFeingold]

28. Whatever happened To Good Old U.S. Savings Bonds

How unpatriotic can he get??? I see he prefers foreign bonds. Looking at dick and dubya's bio, I see we are going the way of Enron!!! SAD

[TexasLawyer]

20. oil

One of the many things we buy from overseas with our shrinking dollars.

And oil that is produced here has its price set at international benchmarks, so either imported or produced domestically it will be increasingly expensive to consumers.

This is at least part of the reason why oil prices have increased so much over the last few years.

[Strelnikov_]

22. "Oil that is produced here has its price set at international benchmarks"

Which is also why, short of nationalizing what remains of the domestic petroleum industry, the chance of any price controls* are nil.

We are bidding against the world and every day have a weaker hand.


* And price controls, without massive mandated conservation measures, would simply lead to rationing.

[cliss]

24. We've still got some assets left.

The US is considered the "bread basket" of the world. We are a net exporter of agricultural products = something that will be worth a lot of money in the next few years.

The dollar is falling = means our products are cheaper overseas.

Add to that an ever-growing, hungry world population that needs & wants our food. And we've got good quality stuff. I should know; I export the stuff to other countries.
Also, we're going to see some big problems coming up with global warming. We just found out Australia's crop might be completely destroyed because they have a drought = demand for food will go up even more. Other countries like China will have huge problems with their own crops. So there will STILL be a demand for our stuff.

Now if we can just get those 2 fools out of the Oval Office before they ruin everything.

[nebenaube]

25. too bad another dust bowl is coming.... n/t

[cliss]

31. Where? Please tell me,

in this country?

[NickB79]

44. Most likely worldwide, primarily in Asia, Australia and the US Great Plains

Global warmings a bitch.

[54anickel]

40. I thought we lost that net exporter title a couple of years ago....

U.S. Food Imports Now Exceed Exports

http://www.organicconsumers.org/corp/exports111204.cfm

INCREASING IMPORTS OF FOOD CREATING TRADE PROBLEMS FOR U.S ECONOMY

SCOTT KILMAN, WALL STREET JOURNAL (11/8/04): America's appetite for imported food is creating problems for the U.S. economy.

Agriculture, one of the few big sectors of the economy that could be counted
on to produce trade surpluses, has recently generated monthly deficits --- a
development that could worsen the nation's already significant trade
imbalance.

According to the U.S. Department of Agriculture, the U.S. imported more
agricultural goods than it exported in June and August, the first monthly
trade deficits since 1986, when the Farm Belt was mired in a depression.

"It's very worrisome," said Sung Won Sohn, chief economist of banking giant
Wells Fargo & Co. "We need agricultural trade surpluses more than ever
because the nonagricultural deficit is ballooning."

What's happening is partly a trade-off for the free-trade agreements signed
by Washington. While those pacts, such as the 1994 North American Free Trade
Agreement, lowered barriers to U.S. farm exports, they also eased the entry
of imported foods.

more...

I realize some of the recent articles on "tainted" imports show graphs that depict us as a net exporter. But there were numerous articles back when we flipped to a net importer of ag products. My guess is that there's been another adjustment to the calculations or more subsidies for products that we were in jeopardy of become net importers of. :shrug:

[bonito]

26. The amero to the rescue ? n/t

[Doctor_J]

34. Prediction: My grandkids will made Nike's for $5/day to be

worn by chinese.

[VegasWolf]

47. Just Americans doing the work that the Chinese won't do! nt

[plasticsundance]

49. The damage is done ...

The Feds keeps creating money and credit, and that's another bubble about to pop.

[flaminbats]

50. wasn't supply-side economics suppose to end this?

STAGFLATION, STAGFLATION, STAGFLATION..so CUT TAXES, INCREASE DEFICITS, AND DEREGULATE BIG BUSINESS!

hmmm, I thought Jimmy Carter and his cardigan sweater were the causes of this.

Never mind that this problem could be solved with bipartisanship. if the White House chose to..the taxcuts could be eliminated, our troops could be brought home, and the surpluses would reappear. Then we could slowly begin to pay down the National Debt, while negotiating with Canada an agreement for a common currency. Together these actions would boost the value of our currency while preparing us financially for when the babyboomers retire. if these Republicans really believed in supply-side economics..they would support funding for stemcell research, use the gas tax only to fund R&D for alternative sources of energy, and use the funds now wasted in Iraq to increase the supply healthcare services. This would increase employment for the children of babyboomers, while moderating the cost of healthcare even as demand from aging babyboomers increases.

but this will never happen with Bush in office, and I doubt it would happen even with a Republican like Romney or Hagel in power.