The Economy

April 21st, 2008 at 09:37pm Don R. Gugliuzza

Our economy is in sorry shape. We have record breaking budget deficits, record breaking trade deficits, oil prices at an all time high, the wealthy getting richer and the middle class getting poorer. How did we get this way? Lack of control.

We cut taxes but never cut spending. Lack of fiscal control. We jumped into free trade agreements that were free but not fair. As a consequence our manufacturing jobs have been sent overseas so that products that used to be made here are made elsewhere and imported here. Part of the record breaking oil prices is due to removing regulation of the major players in the oil market. Another part is the falling value of our dollar (see deficit spending and trade imbalance). And it has been estimated that 20% of the cost of oil per barrell has been caused by speculators and the hedge funds that are no longer regulated. While our Congress has been unable to identify price gouging, I find it very curious that Belvedere, only 12 miles east of Rockford has gas prices ranging from 5 to 10 cents per gallon cheaper than Rockford. With Rockford being the bigger market, how can this be possible? It’s not. Not even if you factor in the slight difference in city sales taxes. If we’re not being gouged in Rockford, I don’t know what is being done to us.

So, the economic predicument we’re in now is a result of failed policies of a Democrat President, Bill Clinton, a Republican President, George Bush and a Congress controlled by either party at various times.

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