Introducing ‘Recession Reality’
Introducing ‘Recession Reality’
The Senate is expected to pass its version of the economic recovery package tomorrow. The House and Senate will then begin a negotiation to reconcile the differing versions of the bill before a final proposal is taken up, passed by both chambers, and sent to the President for his signature. Conservative obstructionism and “centrist” recalcitrance threaten to delay the passage of this vital legislation.
As President Obama said today in Elkhart, Indiana:
We’ve had a good debate. Now it’s time to act. That’s why I am calling on Congress to pass this bill immediately. Folks here in Elkhart and across America need help right now, and they can’t afford to keep on waiting for folks in Washington to get this done.
To keep the heat on Congress, ThinkProgress is introducing a new daily series that we’re calling “Recession Reality,” an attempt to link the plight of struggling Americans with the Washington debate over the stimulus. The purpose of the series is to highlight the real and catastrophic impacts that spending shortfalls are causing to communities all across America. We’ll do this by compiling local TV news reports.
Our first “Recession Reality” looks at the situation in Kentucky. Sen. Mitch McConnell (R-KY), who is fighting against the economic recovery package, should take note of the “recession reality” in his region: one fewer ambulance on the streets…teachers getting their paychecks cut…local retailers fighting for survival…people dangerously skimping on health care. Watch it:
We’ll be doing these “Recession Reality” posts every day until the final recovery package is passed by the House and Senate. Let us know in the comments section what’s happening in your communities.
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Well I hope those red states with representatives who voted against any aid to states get none of the money from the package. Obviously they don’t need any help as witnesses by those votes.
February 9th, 2009 at 2:25 pmNothing happening in my community. Nothing at all…
February 9th, 2009 at 2:28 pmEven though I heard a Faux News item on how “we showed them” by voting in a solid republicn block against the recovery, I still can’t believe how anyone back home at peril of loosing their livelihood could possibly swallow what McConnell is shoving at them.
February 9th, 2009 at 2:29 pmNo offense, but does TP really expect Rushpublicans
February 9th, 2009 at 2:31 pmto deal with reality in any way other than denial?
Is the CBO a reliable source?
http://www.cbo.gov/ftpdocs/99xx/doc9958/01-08-Outlook_Testimony.pdf
Here is some recession reality (as they see it).
and
So it appears that the CBO thinks that the recession will end without the stimulus bill and that the stimulus bill may actually hurt the economy in the long run.
February 9th, 2009 at 2:33 pm.
This is just a “Downward Adjustment”…
… YES?
.
February 9th, 2009 at 2:35 pmThe rich got 8 long years of tax cuts. Yet, they still want more! Where’s all that money? Where did the tax cuts go? The economy has gone belly up while the bank CEO’s and AIG top exec’s get obscene bonuses as bailouts. Where’s all that money? We didn’t get to see a dime!
February 9th, 2009 at 2:35 pmAccording the latest Republican talking points, if you say that people are going to lose their jobs (like teachers, police and fire, etc) then you’re fear-mongering.
It’s funny that during the last 8 years, the Republicans didn’t see a spending bill they couldn’t embrace(and make worse). Now that we truly need to spend, all they can do is continue the tired old mantra of tax cuts. Weren’t those magical tax cuts supposed to prevent a recession like this? Well guess what: they didn’t work.
The definition of insanity is trying the same thing over and over and expecting a different results. The Republicans have finally shown us how insane they truly are. They keep thinking that tax cuts will suddenly make everything okay. The only thing they help are the rich to get even richer. If that’s actually possible.
/rant off
Sorry. I’m still angry after watching the Republicans spout off their talking points on Meet the Press yesterday.
February 9th, 2009 at 2:38 pmIf they thought the Mall was a mess before, what is it going to be like when the unemployed begin using it for a campground?
February 9th, 2009 at 2:50 pmOh, I dunno.
I can’t help but suspect that while the obstructionist republicans are in session screwing working Americans, having a group of newly-unemployed constituents flipping over republican congress-members’ cadillacs and Lexuses (Lexi?) and lighting them on fire for warmth might get faster results….
…and heat too.
February 9th, 2009 at 2:59 pm9. Hoodathunk Says:
Same ballpark… ;-)
February 9th, 2009 at 3:00 pmThe Economy is not going to comeback, those 3million jobs are gone…forever…the damage is too deep.
Until Corporations realize who buys their products (americans with jobs), and they quit being traitors and shipping jobs overseas, then this will be a never ending swirling drain into the toilet.
February 9th, 2009 at 3:07 pmMitch McConnell will never vote for a decent bill, you should focus on stories from Pennsylvania, Maine, and Nebraska, where the moderates are from. Focus on getting the $40 billion in state aid and $20 billion in other spending back in there. Maybe Iowa too, so Grassley will feel the heat to vote for a bill that has his stupid AMT in there (better yet if it gets negotiated out).
February 9th, 2009 at 3:07 pmIt’s very important that the homeless be able to vote in the next election.
February 9th, 2009 at 3:08 pmAlejandro – The CBO projections show 9% unemployment this year into 2010 and a steep decline in overall GDP.
The stimulus package is meant to injection capital and jobs in the short term and for 2-3 years through gov’t programs to soften that and to prevent it from getting worse.
Remember that projections are based on previous trends and these things can change. So sitting back and hoping for the best means millions of jobs lost, thousands of businesses closed and a huge loss in services due to lost revenues.
February 9th, 2009 at 3:10 pmWait … Didn’t TP just point out that the GOP talking heads on the Sunday morning shows said that NOT ONE SINGLE police, fire, rescue job was going to lost in this recession???
February 9th, 2009 at 3:10 pmI would like to encourage Congress to increase funding for fighting global poverty. The Borgen Project (www.borgenproject.org) has some great facts and ideas to help global poverty.
February 9th, 2009 at 3:14 pm$30 billion to eliminate global poverty.
$522 billion on the U.S. defense budget.
There are 800 million people that go to sleep hungry every day, 300 million are children.
Our community, North of Houston, doing well, commercial building strong, new apartment housing strong. Restaurants not showing signs of hurting, nor high ticket items. Car dealorships still healthy. Somebody is buying.
Politico had a great letter from a conservative to Rush jerk, first good sense I have ever heard from a conservative. Basically put up a good idea or get off the commode.
I wonder if Tom Delay created this desire to act like spoiled 5 year olds instead of elected officials to steer this country forward. I have read both parties used to work together on problems.
February 9th, 2009 at 3:14 pmI’m in Los Angeles, CA.
SECOND round of layoffs tomorrow…
February 9th, 2009 at 3:17 pmHow about every small town in America gets an efficient wind turbine with solar panels on the mast?
We could get 20% of America off ‘the grid’ in 2 years.
It would allow big urban areas the power they need quickly.
Communities can ’sell back’ excess generated power to big utilities.
Smaller wind / solar units that are affordable should be available to individual households
Now that we have a 21st Century President, let’s get America into this century, as well…
February 9th, 2009 at 3:18 pmMany of us have been through a recession, where NO jobs were available and somehow we made it. This was before being paid for having lower incomes. Yes, we need to get back on track, starting with American made products, PLEASE ! Anything we have bought made in China lasts about a year if lucky. And try to find an American made product in Lowes or Home Depot.
February 9th, 2009 at 3:19 pmAnd then certain Bills need modifying, the Bills encouraging lifelong welfare dependence.
Zero Says:
February 9th, 2009 at 3:20 pmWhere are the “green jobs”?
Stop holding up the stimulus and we’ll start to create some… what is wrong with you cons?
C’mon folks, let’s be real about this recession. It’s nothing to worry about if you’re following party lines, living in a gated community, chauffeured transportation everywhere, no waiting in lines to events that you don’t have to pay for, automatic pay raises, loyal subjects everywhere wanting to give you lots of cash for doing ‘little favors’. Why, you don’t even need to stop at the grocery store on the way home or take a child to the doctor. That’s right, everything’s done for you by magic because you’re a big shot congress critter who is accountable to no one.
Methinks term limits need to be mandatory and retroactive. It’s the only way to flush this loaded toilet.
February 9th, 2009 at 3:20 pmEvery day we see blades for wind turbines going North, now unless they are being made in Brownsville TX, it is one more thing produced outside of America. Protectionism ? You bet until we can get Americans back to work. And I understand, China, for one, owns our short hairs.
I said it long ago, take our jobs and how can we buy ? But the republicans just don’t get it.
February 9th, 2009 at 3:24 pmI understand that, but deficit spending (going into debt) can cause inflation (making poor people poorer). The National Debt is an anchor weighing down the economy.
If a few tax rules were changed, giving corporations a tax break for moving jobs back to the US, coupled with a tax penalty for leaving them overseas, we’d get back most of the manufacturing jobs that have been lost.
We don’t need to add $900 billion to the already ridiculous deficit.
February 9th, 2009 at 3:30 pmHey Celtic, it is not just the gated communities taking the government freebies, go work in the tax offices and see who are getting thousands of tax dollars for children and if they have more than two, they loan a child to someone else to use for tax money. Oh yes, we have encouraged people to have children to live off.
And then we have the ones who take everything off for tax write offs, meals, houses, cars, travel, you name it.
So who is carrying all this ? The working poor, earning too much for tax relief and not enough to get ahead. A one or two income family with 2 kids, trying to have a decent life.
February 9th, 2009 at 3:32 pmTexaslady
You sound pretty fortunate. I live outside of L.A. and malls, warehouses, movie theaters, restaurants etc… are closing down everywhere. In the last quarter we had the highest unemployment rate in the U.S.
February 9th, 2009 at 3:35 pmIf you open the L.A. Times and look in the career section (which I haven’t done lately) you’ll find maybe one half of one page for sales jobs. That’s it.
I have my own business, but who’s going to buy anything when everyones out of work? I may be joining the unemployed soon enough I suspect.
You say we need to buy American (we do) and mention Home Depot. Places like that and Walmart (for example) have led in the decline of standard of living for american workers.
And how do we get paid for lower incomes? I’d like to know because mine’s been dropping steadily for the past 4 months.
Alejandro – No tax breaks to come back, level the damn playing field ! What other country has a lower tariff for goods coming in than the U.S. That is insane ! How many American companies have token offices offshore to get cheaper tax rate ? Haliburton comes to mind.
February 9th, 2009 at 3:38 pmStrengthen and change the laws to favor America for a change. But Clinton and Bush got us into this mess and yes, we need Stimulus to get out.
Rich – my heart goes out to you, we have family in Southern CA and we hear of stores closing and people asking for handouts on the streets. But how can a state that charges for driving on the roads, $9.00 ? San Francisco, be so poor ? A friend who recently visited was astounded that everything had a charge.
February 9th, 2009 at 3:44 pmBut I remember the mid 80’s to mid 90’s here in Texas and not even waitress jobs were available. The word was, last one leaving please turn out the lights.
texaslady, my husband won’t buy anything that isn’t made in the USA. Believe me that leads us on wild goose chases. Oddly the quality ends up to be better and in most cases the prices are the same. He has to purchase a lot of tools and equipment and they must be made here or they just don’t last with heavy use.
February 9th, 2009 at 3:44 pmtexaslady – The low tariffs are probably one reason so many countries out there are willing to finance our debt. The US is still solvent for now, but for how long? The stimulus bill puts us in even greater debt to foreigners.
And of course, more needs to be done to reign in the corporate tax cheats. The first thing we need to do is to make sure everyone in the Treasury Dept. has paid their taxes in full and then sentence them to whatever punishment would have been dealt out to ordinary people.
Another huge stimulus (it would only cost about $750 billion) is to eliminate the federal personal income tax. But then we’d have to cut the defense dept. by 40%. Either that or raise corporate taxes.
Believe it or not, the federal government can get by without the federal personal income tax.
February 9th, 2009 at 3:49 pmShane, we tried to find everything from skill saws to ladders recently and just got furious because it would have American named companies, made in China. My husband builds classic vehicles and needs to make parts from scratch so you can imagine the tools he has to have. Even pumps for septic systems made in China only have a short lifetime. We are willing to pay more but can’t even get the product.
We are wondering with so many helicopters crashing in the last twelve months if a part was the fault. We had over 14 medical helicopters crash with everyone killed. Just so sad.
February 9th, 2009 at 3:50 pmShane,
I still use tools I inherited from my Grandfather.
Of course, I have tools purchased at Wal-Mart or Home Depot. They are ‘knockoffs’ by the Chinese. They break. They wear out quickly. They aren’t what ‘they said they were’.
It used to be ‘Buy American’
Now, it’s ‘Bye, American’
February 9th, 2009 at 3:50 pmLook out for the side effects of stimulus:
February 9th, 2009 at 3:50 pmhttp://www.youtube.com/watch?v=dEDIyztZGBA
:-)
I guess I shouldn’t go off topic, but Germany and Sweden make some damn good tools.
February 9th, 2009 at 3:54 pmAlso look out for side effects of the stimulus BILL.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLzfDxfbwhzs
February 9th, 2009 at 3:56 pm
Alejandro – I can hear your conservative nature but A) who got us into this mess ? Your party. And B) strange that only Democrats failed to pay their tax bill, probably republicans ALL paid all the time. You had better do some research on your beloved bush family, I have and they are some of the worst tax dogers and screw ups. Try Neil and his Denver bank for one, who bailed that out ? Tax payers that is who.
Sorry, but your veiled snark at Geithner doesn’t cut it. I believe your beloved mccain, had a tax problem as well.
Your tax cut back in bush’s time was 1.3 trillion and we are in debt with his lazy hand at the wheel.
It is time to try something new as 80%of the Nation wants.
February 9th, 2009 at 3:57 pmRich – we have tools from my mom and dad who have long been gone and THEY STILL WORK AND ARE GREAT ! So, tell me again that buying Chinamart crap is alright.
February 9th, 2009 at 4:00 pmAnd, remember when washers and dryers got passed on and kept working ? Or even refrigerators. Yes, people appliances used to outlast families.
Alejandro – can you honestly say mccain, who didn’t believe we had a recession brewing as late as summer last year and palin who see’s Russia from Wassilla could do better ? At least President Obama is trying which is more than bush did in 8 years. And President Obama didn’t need a memo to ignore telling him an attack was imminient.
February 9th, 2009 at 4:04 pmAlejandro – right now your pharma and insurance industry are dictating our drive by mastectomies, and the drugs that only the rich can afford to fight our cancer. Big pharma wrote the Medicare Drug Bill and bush signed it ! You people are so worried that the government will dictate our healthcare. Well, can’t be any worse than what we have now, which many cannot afford.
February 9th, 2009 at 4:07 pmTexaslady,
O.k. I’m off topic again. I must have not been clear. Walmart, Home Depot, all those large stores have had an enormous negative impact on our economy. I still do some contracting work and always go to the (one and only) family owned lumberyard in our area.
February 9th, 2009 at 4:12 pmAmerican tools are great if you go back a number of years. Chances are if you have some they will run forever. There quality has declined as they’ve been forced to compete with junk from China (and other asian countries).
For extremely fine woodworking you really can’t beat German or Swedish tools. Not my first choice, but true.
We are on the fast track to becoming America the Disposable. Second only to America the Needy.
I can remember the time when most Americans could fix their own car or plumbing, knew the difference between a crescent wrench and a ratchet. Seems all most folks can handle these days is a cell phone.
February 9th, 2009 at 4:15 pmHoodathunk – well somewhere it became unpopular to be able to work with your hands, so the knowledge was not passed on. We will always need people who can fix things. They need to have more status than they do presently.
Rich – I agree tools from Germany and Sweden are still good quality.
February 9th, 2009 at 4:26 pmtexaslady – What’s my party again? I have no party, thanks.
Frankly, I wish Geithner, Daschle, and whoever didn’t even have income tax bills.
He he, and I’ve done plenty of research on the Bush Crime Family, don’t worry.
And I remember paying more in taxes after Bush’s “tax cut” even though I didn’t really make any more.
And just “trying something new” is what we did in 2000. It usually works.
February 9th, 2009 at 4:35 pmWe own an auto repair garage so our tools are used hard. When my husband worked at dealers nobody was allowed to borrow tools they had to have their own. Apparently his workers never heard of such a thing and use his instead. He buys Snap-On mostly and occasionally buys something at Sears which they have to replace if they break. But when he goes to buy something like a ladder for the house he’ll keep looking until he finds one. We just had to buy a washer and dryer, and ended up with Maytag one from Canada and the other from Mexico. But at least that’s closer.
February 9th, 2009 at 4:35 pmUnfortunately we’ve been unable to find one paper shredder made anywhere near here.
Ever watch old episodes of “Let’s Make A Deal” ?
They show appliances all the time. You’d be shocked at the prices. A decent refrigerator today costs about $400-700. A nice one will run you about $1000. You can go crazy and get one that costs much more than that, but your average fridge is about $600.
In episodes from 1975-78, they would tell the people that they won a new orange dayglow Kenmore refrigerator from Sears at a list price of $1100. That’s in 1976 dollars. A new toaster oven would be $50. A new washer and dryer would be $1500 for the set. This is in 1976 or around then.
I’m all for buying things made in America, it’s just that sometimes you’re going to have to pay a lot more. It will most likely last longer too. And poor people won’t be able to afford them, so maybe they will still buy Chinese and Mexican.
February 9th, 2009 at 4:43 pmAlejandro – we will be paying for bush’s tax cuts, his war and his buddies campaign contributions for all of my lifetime and probably yours. You really think the need for economic help just “popped” up ? Your man created this and I will Clinton credit for the NAFTA as well. So, suck it up and help your neighbor.
February 9th, 2009 at 4:44 pmNo, poor people as I did, when starting out, bought second hand that still worked until I could pay cash for a new one. We pay cash for what we use or go without until we can pay. A new concept for many. My parents way back said the concept of credit was a bad concept, who could believe two high school educated farm people were so smart. You do without until you could afford it. How strange.
February 9th, 2009 at 4:48 pmTexaslady, buying second hand often meant buying US made. Madison Ave has convinced the buying public that new is better, screw the quality.
I’ll take used over foreign made crap any day.
February 9th, 2009 at 4:52 pmThe stuff coming out of Asia these days is made with slave labor to no standards. Sort of like how things were here 100 years ago. Sure they work cheap and big business is more than willing to exploit them.
Does it mean we have to agree with them?
February 9th, 2009 at 4:54 pmAlejandro, you don’t know what you’re talking about. The game show had top of the line appliances at suggested retail prices, a price nobody charged.
Refrigerators made in Korea, top of the line, are $2-3K. And that’s not the most expensive. What kind of crap do you buy where you find a $600 refrigerator. Sub-Zero is $4-5k and worth it if you can afford it. But obviously you wouldn’t understand.
February 9th, 2009 at 4:59 pmtexaslady – Maybe you got a tax cut. I sure didn’t. How much did that $600 stimulus check “cost us.” But if Obama turned around and sent out $600 checks, he’d be a hero.
The war is another thing killing the economy. So why spend another trillion or so dollars? Back in the olden days when a patient was sick they would bleed him as the “cure.” That’s what we’re doing now. Money is gushing out of the treasury, going to war, going to the banks, etc. So the cure is more bleeding?
And yeah, buying things that last and staying out of debt is a smart policy. Thank god there are people that are dumber and/or richer than me (and that take care of their stuff) so that I can buy second hand.
February 9th, 2009 at 5:00 pmShayne – I’m sorry I’m not rich like you. I said that you can go crazy and buy a $3000 fridge. But most of us regular folk can’t afford that. uh, go to, I dunno, Best Buy’s website and check out the ordinary, non-richie rich fridges.
http://www.bestbuy.com/site/olspage.jsp?id=pcat17080&type=page&initialize=false&sp=%2Bcurrentprice+skuid&nrp=50&iht=n&list=y&sc=abHomeAppSP&qp=cabcat0901000&usc=abcat0900000&ks=960&st=processingtime%3A%3E1900-01-01&prids=&cp=1&_requestid=2581711
February 9th, 2009 at 5:03 pmAlejandro – Just what is your view ? You say you are so poor but didn’t get your bush stimulus when all you had to do was do a tax return to get it. Now you say this new Stimulus package is wrong, wrong, wrong because it is taking something from you. You didn’t care for bush and you don’t like President Obama, perhaps you should consider relocating.
February 9th, 2009 at 5:13 pmAlejandro – As I said before, the taxpayer with small business and families earning under $100,000 are carrying the whole load.
February 9th, 2009 at 5:16 pmZero Says:
——————————————————————————–
Elkhart Indiana’s unemployment rate has tripled because their economy was based on the manufacture of carbon spewing, fuel guzzling, resource wasting recreational vehicles that only the only the wealthy could afford to own and operate.
WTF is Barry going to do, revive this industry to provide more toys for the idle rich bastids? They got what they deserved.
Where are the “green jobs”?
——-
Hey, genius, you think that perhaps some of the existing manufacturing facilities that were used for RV production could be used for “green jobs” or more specifically windmill or solar panel manufacturing.
With a typical Gooper imagination like that, it’s no wonder we’re in the mess we’re in. If you don’t have anything more original to contribute step aside and let more progressive minds fix your mess.
February 9th, 2009 at 5:18 pmWhat do you mean by ’spending shortfalls’?
February 9th, 2009 at 5:55 pmThe stimulus bill will be used against you.
http://www.treygarrison.com/2009/02/stimulating-the-militarization-of-north-texas-police/
texaslady – I got the $600. I didn’t get a “tax cut.” I won’t hold my breath for Obama’s “tax cut” either. But you brought up the fact that the tax cut “cost us.” If the tax cut “cost us” then the $600 check really “cost us” and the trillion dollar stimulus bill will truly “cost us” dearly. And I’m not “so poor.” I just wouldn’t buy a $3k fridge. :-)
And I guess I should just love it or leave it. Thanks for the advice.
February 9th, 2009 at 6:02 pmEconomic conditions are bad and getting worse. There has been a Republican president for 8 years and I believe a Republican Congress up until 2 years ago. Republicans spent too much money.
If we want to chalk up our current economic circumstance as 100% the fault of Republicans, I won’t argue against that.
I understand the idea of spending (like FDR in the 30’s) to stimulate the economy. Maybe that’s what we need.
But, when you think about it on simpler terms, does it really make sense to spend your way out of a debt problem?
On a more personal level would that make sense. ” We spent too much on a house, refinanced it for cars, clothes, vacations, etc. Now, our house is being foreclosed on and our creditors are realizing that we can’t pay back what we owe. I guess we should get another couple hundred grand, buy a bunch of stuff we may or may not need; and spend our way out of this mess “?
I want Obama to succeed, but does anyone else have doubts about the premise of spending more money to cure a debt problem?
February 9th, 2009 at 6:14 pmKentucky should be one of the first states to go down the shit tube for voting for this a$$wipe, McConnell.
February 9th, 2009 at 8:01 pmHoodathunk Says:
——————————————————————————–
If they thought the Mall was a mess before, what is it going to be like when the unemployed begin using it for a campground?
Ain’t that the truth – that’s where I’m going if I lose my job! Things are going bad quickly in Charlotte, NC – $90 million shortfall in the budget! THAT AIN’T FEARMONGERING! IT’S 4 REAL!
February 9th, 2009 at 8:27 pmThe GOP states shouldn’t get any of the stimulus. We don’t want them to be tainted by “socialism”.
Unemployment is much more fun.
February 10th, 2009 at 12:09 amFirst of all, “Acerbic goblin” is just TOO cute. You people that think the red states are all rednecks need to get a clue. We tried to get rid of McConnell here in KY. He was getting his a** kicked until the votes from down here in Jesusland started to come in. Quite a few of us know he isn’t helping the ordinary people at all and now we are stuck with him for the next 6 years. Do you REALLY think that everyone in KY voted for McCrazy? Do you really think that everyone in KY voted for McConnell? Do you really think that we are all a bunch of toothless, cousin-marrying, Bible-thumping hallelujah fools? By lumping us all together, you are no better than the rethugs…you know, all people from the same place, of the same color, of the same religion have the same characteristics. Easier that way, isn’t it? Easier to lump everyone together and not have to look for differences. I am guilty of this myself. I am always surprised when I find someone of the usually red stripe that has something rational to say, and some do! Stop blaming EVERYONE in the “red” states for this, some of us are on the front lines in this battle for the truth, and believe me, it is a long and uphill battle. I have changed a few minds here in we-don’t-deserve-any-help-cos-we’re-a-”red”-state. What have YOU done? Besides, did you ever think that if President Obama’s plan works that KY might not be red the next time? People vote their pocketbook more than anything else.
February 10th, 2009 at 9:43 ambernadette, not all of us ‘blame’ all red state folks. I supported the ‘Ditch Mitch’ effort. A lot of us realize not everyone in red states voted for the obstructionists. Hang in there and keep trying.
February 14th, 2009 at 8:28 pm