When did it all go wrong....

[Waffle]

With all the bad economy talk, dour outlook on the USA and "sad state of affairs" in general with everyone blaming everyone else........

When did it start turning this way?  -  Do you think there was a catalyst for it?

I think it started when the "New Direction" Congress led by Pelosi passed the fair minimum wage act of 2007. (remember the 100 hour plan?)
Even though it passed and was signed into law after the Bush recommended tax cuts for small business were included.
In the then fragile economy, I think the tax cuts vs. payroll expenses were out of alignment, leaving small business to have to lay off people, hence starting a domino effect to where we are today.

Any thoughts / theorys?

[lasersailor184]

When a republican was elected president was when all the talk started happening.

[LePaul]

Its easy, look at the reporting...any way to spin negative, they do.

Progress in Iraq...where the news?

Great time to buy a home if you are a buyer...but all we hear about is those who bought more than they could afford.  Somehow the general public is suppose to shed a tear and insist the government pay for their homes for them.  (So they can not be stung by a bad choice...and make more bad choices)

The Preseidential Race...we arent allowed to point out the obvious flaws of Obama.  To do so is mean, racist and takes the attention off more important things....like his affiliation to racists, lack of experience, poor voting record, etc...

The list goes on.

[Nilsen]

Imo it started when people borrowed too much. Economies will always go up and down but if you borrow too much at a low rate when things are good you get into big trouble when things changes. If more of the consumption was done with saved and earned money then a recession would have a less dramatic effect.

[Donzo]

When a republican was elected president was when all the talk started happening.

That's because the effects of the former dem president had just started to kick in.

[lasersailor184]

That's because the effects of the former dem president had just started to kick in.

I think it had nothing to do with effects, or even reality.

[Rolex]

Iraq. There were several papers written about 15 years ago that showed 4 years is a tipping point for a war. Beyond that, economies suffer significant economic damage. Private investment is forfeited for war spending, which creates no real value in the economy.

[Charon]

I would say it started with the Johnson administration.

More recently, the lack of fiscal responsibility under the Clinton/Bush administration and both the Republican and Democratic congresses. There seems to be no one willing to put on the brakes.

Also, as much as I support the concept of less regulation where industry and finance are concerend, virtually NO regulation is another story. Particularly if you remove the downside for failure like we have with all of these bail outs that leads to the question "Why self regulate?" This started with the almost total hands off approach of the FTC under Clinton where mergers were concerend and the almost total lack of oversight of the financial markets then and since.

The ROI on Iraq is obviously an Issue, as is China as our bestest friend and trading non-partner. The less than equitable implementation of globalization for America as well, of course.

Ultimately though, the American people lack the interest, drive and sophistication to manage our political process, by and large. When that began, I don't know. Probably 1788. But we need the opposite now more than ever.

Charon

[Donzo]

I would say it started with the Johnson administration.

More recently, the lack of fiscal responsibility under the Clinton/Bush administration and both the Republican and Democratic congresses. There seems to be no one willing to put on the brakes.

Also, as much as I support the concept of less regulation where industry and finance are concerend, virtually NO regulation is another story. Particularly if you remove the downside for failure like we have with all of these bail outs that leads to the question "Why self regulate?" This started with the almost total hands off approach of the FTC under Clinton where mergers were concerend and the almost total lack of oversight of the financial markets then and since.

The ROI on Iraq is obviously an Issue, as is China as our bestest friend and trading non-partner. The less than equitable implementation of globalization for America as well, of course.

Ultimately though, the American people lack the interest, drive and sophistication to manage our political process, by and large. When that began, I don't know. Probably 1788. But we need the opposite now more than ever.

Charon

Good points 

[rabbidrabbit]

According to my wife all was well until I overdid the chili last night.

[bsdaddict]

I'd guess gas prices were the catalyst.  The underlying issues have been stewing for quite some time, but most people don't see a problem until it affects them, and people are feeling the pain at the pump now...

[Thruster]

Economies are cyclical. We're in a trough at the moment but I've seen worse even at my tender age. It ain't just the dour U.S. outlook. We're just in a leadership position vis-a-vis world economies. When things head south we're the first to make the turn. Watch and see how global trends start to follow.

[SpazMan]

IMHO I believe it happened when NAFTA was passed. The minute we let manufacturing move out of the country, we doomed ourselves. Its like my cousin said the other day, if these companies in Mexico and China want to peddle their goods here let them make it here. All NAFTA has done is make a group of CEO's rich.

[REP0MAN]

I would agree with NAFTA. The American workforce has not recovered. Probably never will

[Eagler]

Imo it started when people borrowed too much.

it started years ago when banks started handing out credit cards with 10k limits to kids with jobs making $6 an hour flipping burgers...the housing issue is just the final straw in this ridiculous practice

can be summed up in one word   GREED