By Nomi Prins, The Wip
The rhetoric surrounding George W. Bush’s economic stimulus package, as boastfully “bi-partisan” as it is (we are, after all, in an election year), indicates a complete lack of comprehension of the difference between this ‘national’ economy and the ‘people’s’ economy, and the extent of the gap between the two.
The unveiling of his plan was classic Bush: state something ambiguous about a $140 billion adrenaline shot, then have your cronies act as wingmen. Hence, at last Friday’s press conference, Treasury Secretary and former Goldman Sachs CEO, Hank Paulson was left fending off uncomfortable questions like: would the plan help “elderly people on fixed incomes?” His answer: “The Christmas season has come and gone.”
The national economy, as measured by large scale figures simply does not represent individual citizens’ economic circumstances. That’s why debate over whether we are in a recession or not misses the point of everyday financial realities for most of the population. According to the standard definition of recession (two quarters or more of a decline in GDP), we’re not there. In which case, Bush and Paulson are technically right in saying the economy is simply ‘slow’.
But, that’s been far from the case if we consider the people’s economy (the people – as in all the American citizens who don’t fall into that upper percent of the nation’s wealth bracket). And very little in the President’s, or in most of the presidential candidates’ plans, will change this.