John Lott's Website: Why are people unhappy with the economy?

8/22/2006

Why are people unhappy with the economy?

GNP grew at 4% during the first half of the year. Unemployment at 4.8%. Inflation low. And yet Bush's rating on the economy is so low. Here are the results of a new Gallup poll:

The economy 39 Approve 57 Disapprove

5 Comments:

saturdaynightspecial said...: Since his (Bush) folly into Iraq my home equity loan rate doubled, fuel prices nearly doubled, and my freedom was cut in half. And, he spends billions of US taxdollars on a wealthy Arab oil producing country. On top of that almost 60% of income goes back to at least one level of government to pay a tax - sixty percent - the government has more than doubled our costs to purchase anything, and that is how it is able to further erode prosperity and freedom in America.

All that further leads to producing another generation of government cheerleaders that believes the government can do no wrong; and that being the socialist/police state we currently are is the way to go. It is one of the reasons people believe the 2nd amendment is no longer applicable.; 8/23/2006 6:01 AM
John Lott said...: over the last couple of years interest rates were at all times lows. The rates have simply gone up closer to what they have been over time, though they are still a little low. Gas prices have gone up, but other prices have FALLEN, and over all inflation remains extremely low.; 8/23/2006 10:16 AM
saturdaynightspecial said...: interest rates were low; that's why I purchased the loan. If I had to do it over again I wouldn't. Without Bush rates would be where they should be.

I agree prices are not high, but it goes against the grain to spend billions in a wealthy oil producing Arab country (for nothing too). Especially when I know the war is also used as a justification to erode freedom here in America.; 8/24/2006 12:32 PM
John Lott said...: Well, SNS, the rates over the last few years were at historically low levels so it is not obvious why you say that they were at where they should be. You have to go back to the Great Depression to get similarly low rates. Here you had such low rates with real strong economic growth and low unemployment and stable overall prices. My advice would have been to gotten locked in at the historically low rates rather than to have assumed that they would always remain at those unusually low rates.; 8/24/2006 12:40 PM
saturdaynightspecial said...: It's good advice, but who would have expected a foolish US occupation in Iraq that costs the government a couple $billion per week. That amount of government spending is the only reason for the rise in the cost of debt. I'm betting the feds have kept the rate too low for the benefit of Bush and his war on terror. Home sales are dropping which may indicate the cost of investing in real estate is now too high.

I agree that the economy isn't bad, but because so many have defended the government's war on terror some things are being covered up. And if the government has too much debt then things can get bad at any time. If anything we will never have a reduction in income taxes if the government has a long term obligation to pay off a large amount of debt. That's the part that can't be good.

And what happens if we have more disasters? How is Bush paying for all the aid after the multiple hurricanes in Florida and after Katrina too. There has to be an unusually high amount of government debt that is not being talked about.; 8/27/2006 4:21 PM