It is a Recession. . . Stupid!

When Bill Clinton won the primaries in 1992, he had a sign that he carried with him that said, "It is the economy, Stupid". Thus, I borrowed his statement and used it as the title for this article.

According to Wikipedia.org, macroeconomics define a recession by a decline in the country's Growth Domestic Product, or the GDP. The GDP is calculated by this formula : Consumption + Investment + Government Spending + (Exports - Imports) = GDP.

Our administration refuses to admit that we are having a recession. They keep arguing that the economy is experiencing slow growth. If we look at this formula carefully we will find that consumption of products is declining, investment is in a pitiful state, government spending is at an all time high with unnecessary wars and our exports and imports are not like they used to be.

According to the International Monetary Fund, the US is projected to have the same change for the 2008 year as in 2007 and a drop in consumer consumption.

But aside from all the formulas, the economic theories, and macroeconomics. Let us face it. The economy is going down the drain. People are really suffering out there. Everyone is suffering. Here is what we are facing:

1- Foreclosures rates are at incredible amounts: 1 in every 152 houses in Nevada are being foreclosed.

2- The World Factbook states that for the year 2007, the unemployment rate was at 5%.

3- Gas prices are at higher prices than normal for the Winter months when gas prices should be lower.

4- Huge companies like Citibank and Countrywide are projecting huge losses.

5- In June of 06 we had national debt 0f $ 8.97 trillion!! In June 2007, we have an external debt of $13 trillion or 88% of the US economy.

6- The US dollar keeps dropping

However, the administration keep telling us that it is not a recession and that we are facing a slow economy. People are loosing their jobs, their homes, their dreams and their life and it is a slow economy. If this is a slow economy then I wonder what happens when it comes to a full complete stop? I think we need to see some solution to this crisis right away. If we look at the candidates for the next election, the democratic ones bring some good solutions to the table but these will not take into effect until next year or the year after. The republican candidates of course, do not bring any solutions because they do not even acknowledge that there is a problem. All this time while the administration under Mr. Bush just keeps denying and ignoring.

There is no doubt that really bad decisions brought us to the situation we are in today. I do not buy that the government has nothing to do with the economy. I do not buy that this was caused by 9/11. They can not blame everything on 9/11. They have to admit that mistakes were made. And these mistakes should be solved. Let us just agree that when there is a Republican president, the economy goes down the drain. I did not come up with this myself but the numbers speak. Writer Michael Kinsley wrote in Feb 17,2006 in The Slate this : " Democrats are better-even by the standards of Republicans. In categories like government spending, inflation, and job creation, the record of Democratic presidents has been consistently better. According to past calculations, Democrats were better at holding down the size of government (measured in dollars or in civilian employees) and holding down the deficit, but Republicans had mastered the simple trick of cutting taxes without bothering to make up the cost. "

I believe we are in a recession. I believe that we should look at the real issues we are facing home like this preposterous economy. I think that if this man who calls himself a president of the United States of America has any dignity he should resigns his job immediately because he failed miserably and he brought us down to our knees. Ladies in Gentlemen, Recession is in Session. Buckle up!