McCain: ‘I Still Believe The Fundamentals Of The Economy Are Strong’

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"McCain: ‘I Still Believe The Fundamentals Of The Economy Are Strong’"

mccainnodonation.jpgOn her radio show today, conservative talker Laura Ingraham asked Sen. John McCain (R-AZ) what he believed should be done to address the struggling U.S. economy. Ingraham listed several economic indicators that have declined in recent years to make her point. McCain dismissed the premise of Ingraham’s question, saying, “I still believe the fundamentals of our economy are strong”:

INGRAHAM: And now look: the dollar’s weak, we have serious competition from abroad, government is running a deficit. … What are the Republicans going to do if China ultimately overtakes us economically and does that matter?

MCCAIN: I still believe the fundamentals of our economy are strong. We’ve got terribly big challenges now, whether it be housing or employment or so many of the other — health care. It’s very, very tough times. It’s very tough. But we’re still the most innovative, the most productive, the greatest exporter, the greatest importer.

Listen here:

It’s not clear which fundamentals McCain is referring to. Eight years of conservative management have left the economy with something other than “strong” fundamentals:

- Inflation is rising. The U.S. economy is currently experiencing “the worst 12 months of inflation in almost three decades.”

- Real wages are declining. Americans are experiencing a “de facto pay cut.” “Almost everything costs more, even as [Americans] have less money to pay for it.”

- Unemployment is increasing. Americans have experienced “seven consecutive monthly declines in employment.”

- Cost of food is rising. Food prices are quickly increasing and even school lunches across the country will be more expensive in the coming year.

- Optimism about economy is declining. “Optimism in the U.S. economy among CEOs of the nation’s fastest-growing private companies” is at a 16-year low. Americans are similarly pessimistic.

- Foreclosures are still increasing. Home foreclosures were up 55 percent over last year in July and “17 [percent] of all homes for sale in the U.S. are repossessed properties.”

McCain’s economic policies are promising more of the same. As Paul Krugman writes, McCain offers a “combination of irresponsibility and double-talk” that promises to be nothing short of “Bush made permanent.”

Digg It!

Transcript:

INGRAHAM: This issue of China, I guess it was not eight years ago the U.S. was widely thought to be the world’s richest and most powerful country. And now look: the dollars weak, we have serious competition from abroad, government is running a deficit, and the dollar of course plummeted. What are the Republicans going to do if China ultimately overtakes us economically and does that matter?

MCCAIN: I still believe the fundamentals of our economy are strong. We’ve got terribly big challenges now, whether it be housing or employment or so many of the other — health care. It’s very, very tough times. It’s very tough. But we’re still the most innovative, the most productive, the greatest exporter, the greatest importer. Every new advancement literally in technology that has created this new economy throughout the world has come from the united states of economy. do we have a lot of things to fix, do we have big challenges? Yes. but i also believe America’s best days are ahead of us.

And I also believe, Laura, at some point this contradictions between basically a totalitarian government and aspirations of people for a free and open society particularly as their economy and their standard of living improves. I think there’s going to difficulties within china they’ll have to have to face.
Their environment is terrible, as you know. They’ve still got hundreds of millions of peasants living as Chinese citizens, they call them those. Living the same was as peasants did for centuries. So I think I think China’s got challenges ahead of them, But i believe America — the 21st century will be the American century as well.

Update

McCain’s claim that the U.S. is the “greatest exporter” is false — Germany currently holds that distinction, according to the CIA World Fact Book.

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