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Feb 06, 2009 -- Clark talks new unemployment figures, stimulus package
CLARKONOMICS: Our nation is fast accelerating into a state of deceleration. More than 3 million people lost jobs over the past year. Meanwhile, our new unemployment rate is 7.6%.
It's been a false economics of borrowed money that had boosted our economy in recent years. Our family debt now sits at 141% of our annual family income. Only 30% of us own our own home free and clear. And it's not just the households. The government and corporations both borrowed quite heavily.
Clark is not a fan of the concept of stimulus packages. If the problem is that we owe too much money, we don't solve that by having the government turn around and borrow, right?
So what do we do? Well, the economy has to be given time to correct. In the meantime, we've got to cushion the blow the unemployed are feeling with extended jobless benefits and more money for food stamps. Basically, Clark argues that we need to bolster programs that provide a social safety net.
We're only hurting our long-term chances of recovery if we spend a fortune on a stimulus package right now.
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What others are saying
the real deal
what everyone needs to understand is that this bill needs to pass so that the economic system will fail. why do you think there is ONE political party in control of the house, senate and presidency? So that it is sure to pass. This stimulus gives people just enough to not make a difference to real to people but just enough to spend it all on useless junk. Bottom line...the economic system must fail so that a new one can be implemented. this is already under way. And you have the international banking cartels to thank. stock tip of the day....buy AMEROS.
No stimulus program!
I think our tax dollars are used for wrong purposes. Mismanagement and greed by these corporations DO NOT deserve any forms of bailout. Let go belly up and let them learn the lesson the hard way.
self-UNemployed
Is there any help for the U.S. citizens like me who were self-employed for years and had to pay more taxes than other people...(since we have to pay the full social security amount ourselves)......we need help....we need work....any advice?
Clark is wrong
Normally I like Clark's show, but he is dead wrong on this one. A capitalist system follows a boom bust cycle, that is true, but Government is needed to prevent the cycle from becoming too extreme. In theory a boom/bust is fine, except millions of people suffer, and not just a little pain of not buying what they want, but years of abject poverty while the economy rights itself. Those who don't suffer are the Wall Street robber barons who profit in the good times and ride out the bad.
The Stimulus is needed to prevent a full blown depression. It is a way to use Gov't spending to truly invest in the little people in this country, give a little back to them and allow them to have some breathing room. The jobs created will benefit mid to lower income people, the programs will benefit the same. Without the stimulus we can get ready to endure a depression for a long time.
I agree with Clark
Yes, we need a safety net, not a larger debt. Debts are bondage and prosperity comes from freedom. We need not waste anymore. Also, we need God and His laws for His continued blessings on America.
The Stimulus Package is Theft
The stimulus package is not even much of a stimulus package, but rather a sneaky attempt to GROW government, mostly, while only a third of the stimulus bill will actually stimulate the economy. This is stealing from taxpayers in broad daylight! I thought Obama said he would not raise our taxes? This is a major overload of borrowing on future taxes for generations!
stimulus package
I agree with you!! Ray
re:Lady who was checking with banks
I keep all my money in a coffee can..wanted a tin one but could only find plastic..feel safer having it when I want it day or night..but thats JMO
Let's bleed the patient!
The patient is on the gurney with low blood pressure and almost no pulse - what should we do? The "doctors" in Congress put their heads together and have decided to bleed the patient to make him strong again! Name one country that has ever borrowed and spent its way to prosperity. It is a silly notion but it fits the prevailing political winds and the temper of our fat, lazy, something-for-nothing electorate.
I like the "buy gold" advice below. I'd expand it to buy gold, guns, and grub. You will need all three in the coming turmoil when this financial house of cards comes down around us.
Stimulus
If you owe your credit card company $50,000....how do you expect to pay off your debt by running up more charges? Only government could come up with a plan this irresponsible.
Credit card - charges to check it out
My husband and I are going to be building a retirement home soon and I've checked 3 banks to see what charges they will assess. I cannot seem to negotiate with any of the banks on any of their charges or interest rates. Our credit score used to be around 800 for both of us, but is now down to 775 or so because the credit companies decrease our credit score when the banks check our credit. We don't think they should do this and also how do you get the banks to "give" a little???
Stimulus
To chip, yes in a normal recession, or "cold", as you put it, the cycle of contrtaction / growth is standard procedure. THIS recession, however, has all the markings of cardiac arrest, and has to be dealt with accordingly. Whether we admit it or not, the Chinese only have so much they'll invest in America's assets, and once that dries up, we are, for all practical purposes, bankrupt.
economics lesson for clark
chip the cpa - i often disagree with clark, but he's right on the issue of the bogus stimulus plan. I think the problem is not that clark needs a lesson in economics, instead i think the problem is that too many such as yourself may have had too many keynesian lessons in economics. rescessions are like colds that require the body to take a break from a period excessive spending and investment that the economy can't absorb. it's normal and natural and the only effective remedy for recovery. the stimulus plan is almost a complete waste of resources that the country certainly can't afford and the projects proposed for receipt of this money wouldn't have been done in a free market by rational investors. The end results is going to be too little real stimulus for the immediate economy, too little valuable long term investments and far too much long term debt that will cause tremendous harm to our country.
In short, this stimulus is nothing more then inane political posturing by the very government that created this problem in the first place (an economics lesson for a future email).
Mark
Overspending Habits
Does it make sense to over spend to make up for over spending? Where is the common sense in that??
Help the self employed also
no one evertalks about all of us who are self employed and aren't figured into the unemployment numbers. We need help to. When wage earners get laid off that effects the self employed and in turn we suffer the most. Since we don't get a weekely check the tax brackes don't help now. The government needs to help everyone. If the self employed get thrown into the job market then no will be able to survivie.
Economic Stimulus Package
The stimulus package focuses on needed infrastructure spending with a multiplier effect to offset the "paradox of thrift" problem to the economy that happens when consumers tighten their spending. It also has a temporary increase in the social safety net programs for those hurt by the recession. Clark, I love your consumer tips, but you need a lesson in economics.
Overseas
Even Dubai, that was building anything and everything, put construction to a halt
Inflation
Obama and the "spread the wealth around" socialists in Washington are going to inflate our currency. Wake up and smell the ink on your freshly minted $100 bill. What's the answer to this problem?
