Konopnomics

How interesting that one day after I talk about how large government spending to restart the economy on WSPD, that Ben Konop comes out and writes an article on how proud he is about doing such a thing. Of course I had no clue he would be writing this piece, but I wanted to reemphasize that this area is a perfect example of how government spending to create jobs does not work. Every large project here in NW Ohio is trumpeted as the one to get this area going. We have the TPS building plan, the I280 bridge, and 5/3 field, the new Arena which those three combined are billions of dollars of government investment, but there is no pay off. The local unemployment rate is bad compared with the surrounding areas and even the nation. While local leaders like to point that their problems are the result of an evil administration in Washington or Columbus, the fact is they need to look into the mirror. Large government spending in Northwest Ohio is proven to be a failure to help out and Ben is proving that he is cut from the same cloth and the rest of the leaders here, which is a bad signal for the change we need in this area. Embracing this proven failure of policy in Northwest Ohio, means that unless we do not change our mindset, we will remain in this stagnation that we have been in for a long time now. FDR is dead, the local Democrat leaders have proven this time-and-time again. It does not take a Ph.D. in economics to prove this, as Ben said. We need to move on.

You can listen to what I said by listening to the Eye on Toledo Podcast on http://www.wspd.com .

There were two other things that I thought were interesting.

1. The unemployment over the last 10 years is still at record lows.
You can see the 10 year chart for yourself at:
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_action=wh&gr...

There are more people working:
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_action=wh&gr...

And the hourly earnings have increased:
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_action=wh&gr...

2. I also noticed Ben said:
"A number of well-respected economists have found that the U.S. economy historically performs better under a Democratic administration than its Republican counterparts."
I don't see a number of well respected economists, and one of the one's that Ben is citing wrote a column in the NY Times:
http://www.nytimes.com/2008/04/27/magazine/27wwln-idealab-t.html
But that economist does admit that:
And while Republicans have presided over dismal income growth for middle-class and poor families in most years, they have, remarkably enough, produced robust growth in election years.

What do you think? Yeah or nah for Konopnomics?
Read the whole thing at:
http://www.toledofreepress.com/?id=8142

No votes yet

What did it do for us?

Is there any attraction at any of the exits to make people want to get off and explore?

If they did what would they see? Vacant buildings, weeded empty lots.

Any services off the exit? Hardly.

Coming into Toledo from the south, the view of the downtown is almost completely blocked by the span of the bridge.

What boost for the city was the bridge to bring us when it essentially was an up and over the city bridge.

Is like peeing into a fan.

What does it accomplish?

The Reagan administration, while advocating for less government gave us more and set us up for the Adjustable Rate Mortgage fire sale and then collapse.

The Democrats fail to protect us from the world and spend too much, on social programs.

Neither has any plans other than reacting to the events from day to day and year to year, other than how they can get elected each and every term.

Blaming Reagan for setting us up for the ARM firesale is absurd. What you will never hear in the news is that many people that took conventional adjustable rate mortgages over the past several years have actually experienced their rates going down. If you are financially responsible enough to avoid maxing out your debt and can handle the ups and downs many people can pay less in the long run by sharing some of the interest rate risk with an adjustable rate. I use my adjustable rate equity line sparingly and it is a valuable financial tool. There are fixed rate equity lines out there but the rates are so high almost nobody takes them.
The majority of the problem has been with the subprime adjustables that typically won't go below the initial start rate. Putting someone with a shaky at best credit history in a mortgage that can only increase is not something I would recommend, but clearly too many people put themselves into that situation.

To eliminate adjustable rate mortgages would be comparable to making fans illegal because 5% of the users might wet themselves by standing downwind.

Which is what some lenders did.

They wanted the fees and rewards.

Some lenders and some borrowers.

Gramm-Leach-Bliley Act set up the house of cards, which turned into the present day mess. Banks and institutions took advantage and went on lending and hedged bets and the end was result was another housing/mortgage mess.

"The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. For example, Citibank merged with Travelers Group, an insurance company, and in 1997 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services. "

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

The implications of the acts of some greedy lenders has been felt world wide as banks have failed or bearly failed, because they bet on the U.S. housing market, "LONDON: Long lines of customers formed at branches of Northern Rock, the embattled British bank, early Monday, and its shares plunged again, heightening pressure for a sale of the business or its assets."

http://www.iht.com/articles/2007/09/17/asia/17northern.php

Sounds like the same type of people at the helm of the institutions of today, but it was in the 80's....the S&L scandal broke loose.

"A new type and generation of opportunistic savings and loan executives and owners—some of whom operated in a fraudulent manner — whose takeover of many institutions was facilitated by a change in FSLIC rules reducing the minimum number of stockholders of an insured association from 400 to one."

http://en.wikipedia.org/wiki/Savings_and_Loan_crisis#Background

Funny history in one form or another repeats itself.

"George Bush presided over one of the lowest unemployment rates in United States history. In 2000 it was in the high 3.9%.

George Bush wasn't President in 2000. He was inaugurated in January, 2001.

---------

"Show me a man who lives alone and has a perpetually dirty kitchen, and
five times out of nine I'll show you an exceptional man." -Charles
Bukowski

There's a city full of walls you can post complaints at

supposed to say I was wrong :) You are right. This was posted at 2:30 am, I deserve some slack :)

and you should know we cut radio personalities 0 slack, mister.

:D

And I should know! :)

for participating alongside the rest of us.

says a lot to me.

very much appreciated!

Don't ask me to vote for it, either. Ignoring the attempts to vilify Maggie Thurber and the GOP in general, the article is little more than typical moonbat squalling.

From the article:A number of well-respected economists have found that the U.S. economy historically performs better under a Democratic administration than its Republican counterparts.

Name three. Cite a few sources, because I've never heard this and I'm curious if there is any truth to it. I suspect there isn't, or that that the mysterious economists in question turn out to be mis-quoted. To continue with the hyperbole:

Democrats have been better stewards of our national resources

Stop right there, Moonbat. Better? Better than who else? How much better have you Democrats been? As of June 26, 2008 the United States is $9,368,857,122,740.39 in debt. Source: http://www.treasurydirect.gov/NP/BPDLogin?application=np Democrats helped the US achieve this lofty amount. Your Lucas County Jobs Corps program would help increase this debt by spending tax dollars to temporarily employ residents, and either continuing to fund the program with increased taxes or terminating the program when the money ran out. Which it would.

What you're supposed to be doing, simplified, is this. Find a dozen or so companies that will employ lots of people. Go talk to the companies and find out what it would take to get them to locate or re-locate in Lucas County, then figure out a way to give them those things. Business will arrive and create a demand for labor, which if you keep your hands off it will drive the cost of labor up. More people will come to Lucas County to fill the demand. For your part, you hit the road and keep finding companies that will come to Lucas County. Tax dollars will roll right in, and you can fund COSI, and no one will notice.

At some point Lucas County will reach its own immediate capacity, and we all can retire. You'll be remembered as the inventor of Konopnomics, Better Toledo Schools, Protector of Children Everywhere and General All-Around Nice Guy. I'd even vote for you myself, because if you actually did accomplish what I've just outlined for you, I'd be able to get a job in Toledo and live with my family. Which I can't do now.

Mad Jack
Mad Jack's Shack

Personally I was under the impression that historically it was demonstrated that we did better as a nation when the President was of a different party than the majority of Congress. However, sources out there in reference to the question of:

A number of well-respected economists have found that the U.S. economy historically performs better under a Democratic administration than its Republican counterparts.

http://money.cnn.com/2004/01/21/markets/election_demsvreps/ - source states:

According to their paper, entitled, "The Presidential Puzzle: Political Cycles and the Stock Market" and published in the October issue of the Journal of Finance, stock market returns are on average about 5 percent higher when the White House is run by a Democrat than during Republican rule.

This blog references other sources in addition to the above study:

http://economistsview.typepad.com/economistsview/2008/04/political-busin...

One of the links mentioned in the blog post:

http://krugman.blogs.nytimes.com/2008/04/02/bartels-alfred-wegener/

So there's more than three sources cited making this point.

We don't remember days only moments...

http://www.princeton.edu/~bartels/income.pdf

This pdf might be of interest:

We don't remember days only moments...

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