100 % of zero is still zero
Percentage of GDP is irrelevant to any recovery from an economic crash. And the collapse of 2008 was a crash by any definition.
After a crash the Gross Domestic Product of any country is not really known. It wasn't even really known before the crash because the economy prior to the crash was a faux economy.
The California Gold Rush was a rampant economy because of the promise of 'mad money' with the discovery of gold. The Boom Towns crashed because it was all based in over exaggerated expectations.
What occurred in large measure during the Bush/Cheney/Secretaries of Commerce years was no different than the California Gold Rush. The expectations of those years were exaggerated and people from every walk of life mortgaged their lives to achieve status and wealth that was promised to them.
The economy of Bush was destined to fail and everyone that did not participate knew it. Those folks still have their homes and their lives and with any luck their jobs.
The profound truth to the circumstances the USA faces today is that, 1. it are not alone, although the rest of the global economy wishes it were and 2. the economy of the USA has yet to be realized.
The current USA Labor Department is going about things the right way. They are looking at the economic collapse of each region as it experiences it and addresses it with programs to return a degree of economy to existing infrastructure that is still viable.
The intervention by the USA Labor Department is about sustainable employment, sustainable tax base and it is not 'flash in the pan' growth spurts that will only return to un or underemployment again.
The Stimulus allowed breathing room to the States, but, also addressed crumbling infrastructure that was grossly neglected during the 'years of neglect' from 2000-2008 all for the sake of a nation at war.
I am sure I can look back at the Clinton Surplus and find a lot of uses for it that would have resulted in economic growth past 'the service economy' of the time, but, that was wasted and now we are faced with 're-growing' the USA from practically scratch. It is an interesting exercise actually. We expected more cooperation from the salvaged banks but received none. A good lesson for all to learn as far as I am concerned.
But, what is more interesting than any of it, is that we have a huge opportunity before to rebuild the infrastructure of our country that will serve 'better' priorities rather than ones of the past. We can literally 'remake' our education, energy, transportation, etc. infrastructure with the future in mind.
The point is, even after one year of trying we don't know what the new GDP of the USA is. We have yet to achieve our goals and realize their outcomes.
The town where I am living has seen the rebirth of 'Main Street' since the collapse. Shops that once lined 'the mall' have abandoned higher rental prices and returned instead to Main Street shops. It is charming again to walk down Main Street and 'experience' the town rather than scampering about the mall and hurrying on the way. The local economy feels more like a local economy rather than a big box store and the shop keepers are doing well. Craftspersons display their goods on consignment in shops where it makes sense and 'it is a good thing.'
There are businesses that have gone out of business, but, then they were probably run by poor management that could not absorb any loss and forced to close their doors. That can be stated as appropriate, but, it is still unfortunate to those that face hard times.
Larger companies that were viable before are still seeing viability, but, with losses they have had to adjust and hope higher sales will return.
Lots and lots of sales at chain stores which give the shoppes are run for their money, but, I can't believe those chains can keep up that pace for long.
The point is 'contraction' of any economy is a blow to the debt a nation carries, but, when the recovery is realized sometimes 'when working with percentages' the entire picture changes.
So, for a country with a debt of 50% to its GDP, with contraction of 25%, the amount of the debt doesn't change, but, the percentage does. That can be bad news for an economy that is unrecoverable, BUT, the USA has much promise and many untapped opportunities. So the picture for its economy is really quite bright.
What also contributes to the optimism of this economy is a President determined to ravage old habits of cronyism and rid the national debt of unnecessary ventures and wasted taxpayer monies. I have not witnessed a President as obviously 'on the hunt' for government waste as President Obama is. I am proud of him. The sad reality is that Democrats don't realize a favorite son when they see one.
As the President is successful and waste is sculpted from the budget, we will end up with more in our treasury than we bargained for. What will also be unexpected is the increased tax base and an increase in revenues and before we know it we will not only have the country we longed for, but, one that can pay its bills.
I am less worried, than determined and I think that is the best outlook one can have. Small businesses and local economies are more important to our recovery than can be said.
...in the interim, the President is absolutely correct again,...the best venue for people that find themselves floundering is finding an education that will provide in the future and stick with it. Those that have wanted that Masters or PhD have an opportunity they should take advantage of, too.
I will return to reading the Republicans 'alternative' plans tomorrow. There is just so much I can read at a time. I needed a day off.
Tomorrow.
