Tuesday, February 14, 2012

Economy - #3654 - Economists: Pre-Recession U.S. Economy is "Not Coming Back" - The Blaze (2) Obama Cites Rising Gas Prices - UP 83% UNDER HIS TENURE - Among Reasons to Extend Payroll Tax Cuts - CNS News (3) Pentagon May Oust Troops Involuntarily to Meet Reduction in Budget Plan - Bloomberg (4) Dependence on Government Highest in History - Heritage Foundation (5) Flights by U.S. Airlines Hit 10 Yr. Low - Yahoo

“The economy that we had before the recession is gone,” said Kenneth Goldstein, an economist for the Conference Board, a group that provides economic and business advice and research to its member companies.  “It’s not coming back.”  The U.S. economy is being transformed into something new; something where businesses invest less and consumers spend fewer dollars, Goldstein told The Huffington Post in an interview.  What would be necessary to return the country to its pre-recession growth?  According to Goldstein, “businesses, consumers and the government would need to spend at least $1 trillion more than they are likely to spend in order for the economy to return to its pre-recession growth rate. Of course, no one is going to invest that kind of money to jumpstart the economy, since consumers are nervous about spending and businesses expect a lower return on their investments.  “Where’s the money?” Goldstein asked.  The main problem is that consumers’ expectations for the future have all but deteriorated, Goldstein said.  “They suffered from such a large economic shock in 2008 and 2009 that many older people now do not expect to return to work, and many younger people no longer expect to make that much money,” he continued.  Read more.........

Obama Cites RISING UP 83% UNDER HIS TENURE - Among Reasons to Extend Payroll Tax Cuts - CNS News -  CNSNews.com reported last month that under Obama, the price of gas climbed by 83 percent.  When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the Bureau of Labor Statistics. The figures are in nominal dollars: not adjusted for inflation. Five months later in June, unleaded gasoline was $2.26 per gallon, an increase of 26 percent. By December 2011, the price of regular unleaded gas per gallon was $3.28, an 83 percent increase from January 2009.


Pentagon May Oust Troops Involuntarily to Meet Reduction in Budget Plan - Bloomberg - The Defense Department may have to force soldiers, Marines or other members of the military out of the services for the first time since the aftermath of the Cold War to achieve the spending reductions in its budget proposal.  The Pentagon plans to cut 67,100 soldiers from active and reserve Army units and the Army National Guard in the five years starting Oct. 1, as well as 15,200 from the active and reserve ranks of the Marine Corps as part of an effort to save $487 billion over a decade, according to the budget sent to Congress today. The Navy and Air Force would lose fewer people -- 8,600 and 1,700 respectively -- because of their role in a strategic shift toward the Asia-Pacific region and the Middle East.  The military will first try buying out contracts or offering bonuses for people to leave, while working to keep those with valuable specialties such as cyber warfare and acquisitions, according to Travis Sharp, a fellow at the Center for a New American Security, a Washington policy group, who attended a Pentagon briefing for analysts last month.  Read more.......

Dependence on Government Highest in History - Heritage Foundation - The Heritage Foundation’s 2012 Index of Dependence on Government shows an alarming trend under the Obama Administration of a level of dependence on our government that has never been seen before. Today, a full 70 percent of the federal government’s budget goes to pay for housing, food, income, student aid, or other assistance, with recipients ranging from college students to retirees to welfare beneficiaries. Heritage’s Patrick Tyrrell writes that other findings from the study show:  Government dependency jumped 8.1 percent in the past year, with the most assistance going toward housing, health and welfare, and retirement.  The federal government spent more taxpayer dollars than ever before in 2011 to subsidize Americans. The average individual who relies on Washington could receive benefits valued at $32,748, more than the nation’s average disposable personal income ($32,446).  Read more........

Flights by U.S. Airlines Hit 10 Year Low - Yahoo - U.S. airlines in 2011 operated the fewest number of flights since the hijack attacks on New York and Washington depressed air travel and accelerated the industry's worst-ever financial downturn, government figures on Tuesday showed.  The Transportation Department said major airlines, their chief low-cost competitors and the biggest regional carriers, recorded 6.08 million departures last year. Takeoffs were not that low since 2002, when they totaled 5.27 million.  Read more..........

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