Monday, January 4, 2010

Mistakes of our Fathers.

No, don't worry Dad I'm not coming after you. I am trying to illustrate the need to remember the past when dealing with our present economic problem. So we don't make the same mistakes our fathers, fathers made.

Look at all the good economic news:

Headline CNBC:

December Jobs Report Could Show First Gain In Two Years.

"December could be the month where we see the first increase in payroll employment since December 2007, and even if it doesn't happen this month, job gains won't be long delayed," IHS Global Insight economist Brian Bethune said.

Headline Bloomberg:

“We are really starting to see the mechanisms for a sustained recovery come into place,” said Robert Dye, a senior economist at PNC Financial Services Group in Pittsburgh. “We are starting to see investment numbers come back.”

Headline Reuters:

"There's definitely an uptick. The number of employers who say they're going to add full-time workers is up from last year, and that is very good news," said Michael Erwin, senior career advisor at CareerBuilder.

Great we must be on our way to recovery right? As Lee Corso from ESPN might say, "not so fast my friend."

Paul Krugman put it best today in the New York Times. He warns us that in 1937 we saw a similar growth during the Great Depression. The Government at the time determined incorrectly, that the Depression was over and immediately took steps to stop spending, while tightening monetary policy. Those actions caused the economy to again swirl the toilet. So before we make the same mistakes we made in 1937, before we allow Congress who only votes to further job security, to repeal or block further economic progress. Why don't we let the economic experts decide what is best for our economic future, not the tea baggers or the political pundits on TV and radio who love the catch phrases of "spending our children's future" or "Don't tread on me" lets not allow the mouth breathers in our society to make policy because they are the loudest. Lets learn from History not repeat it. We are seeing slight signs of recovery which are probably blips on the economic landscape, lets not rush to judgement like many did in 1937. Read Krugmans article by clicking his name in this paragraph, he puts it much better then I do. Because he is much smarter then this Stay at Home Dad.

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