While the Conference Board Consumer Confidence Index is at a 16-year low, the University of Michigan Index of Consumer Sentiment is at a 28-year low (PDF). The index registered 59.8 for May. The last time it was this low was the 58.7 of June 1980, just a year after the stagflation-driven 44.1 of June 1979. I would say it might also be time to bring back another vestige of the era, a disco inferno, except all those polyester suits could probably be better used as an alternative energy source.
(Photo: Getty)
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@battra92: Raising taxes is not necessary being “inept with economics”. You’re defining “inept” as being policies that you disagree with. Personally, I think uncontrolled deficit spending (which has led to devaluation of currency for us all) is worse than raising taxes on people who can afford it. If we’re going to have expensive programs, like wars, we should pay for them now. During WWII our government demanded that people sacrifice for the war. They should do the same now.
The problem with the “let the free market decide” approach is that it is biased toward the status quo and the short-term view. It’s business’ problem to deal with short-term problems; it’s the governments’ problem to deal with longterm energy security, because the free market fails to do a good job there. And it’s not like the government isn’t subsidizing existing energy resources anyway.
@johnva: Personally, I think uncontrolled deficit spending (which has led to devaluation of currency for us all) is worse than raising taxes on people who can afford it.
Who’s arguing on that? Both parties just want to spend all our money, just on different things.
I’m for what was once part of the Contract with America that sadly never got passed which was that the government was only allowed to spend so much based on GDP (excepting defense of course)
Seriously, Obama is just a suit with a teleprompter. I bet he really has no idea on economic models. If he did, he wouldn’t suggest raising capital gains taxes which would discourage investment.
@johnva: During WWII our government demanded that people sacrifice for the war. They should do the same now.
Different times, different scale of war.
@battra92: Raising capital gains taxes may discourage investment, you’re right. But the fact that they are much lower IS fundamentally unfair in some ways. It means that the richest people are paying much lower effective tax rates than many upper-middle-class people. Now, I do think there are arguments either way on this. But I can see Obama’s point on this. It’s ALSO harmful for too much wealth to become concentrated in too few hands, and that’s one of the results of the low capital gains tax rate.
As for WWII, this current Iraq war is the most expensive war since then. Yes, the scale and expense is still lower. But it’s getting very high, and I think it’s about time we enact a special war tax for its duration.
The free market decides everything – not government policy. The reason sensible people notice that prices are so high is because of the droves and droves of idiots that buy, buy, buy even when they aren’t using their own money. For every 1 person that actually shops, compares, and waits until something is on sale, there are 1000 (or more, really) morons buying things at full price or even above retail. It truly takes a giant change in people’s habits to bring about change in the free market. The best thing the gov’t can do is educate the masses and give the people with any sense whatsoever great vehicles and opportunities to earn and save.
@quagmire0: For every 1 person that actually shops, compares, and waits until something is on sale, there are 1000 (or more, really) morons buying things at full price or even above retail
Sadly government has not given them any reason to be accountable either. It sounds cruel but I’d like to see more people held accountable for spending more than they should and not saving when they should.