Don't worry about going broke from high gas prices. The economy's growing!

[bigtree]

Oil prices hurt business, families — not growth

http://www.msnbc.msn.com/id/8619240/

WASHINGTON - High energy prices can put a strain on both families' and businesses' budgets, but so far they aren't seriously crimping overall economic activity, the president's top economist said Monday.

"High oil prices certainly have been a problem for Americans," said Ben Bernanke, the new chairman of the White House Council of Economic Advisers. "They are a burden on family budgets. They raise costs of production and reduce profits for firms."

"The higher oil prices so far have not depressed economic growth very substantially," Bernanke said. "I think that is a testament to the flexibility and adaptability of the U.S economy that it continues to grow despite this drag from energy prices.

The White House is predicting that gross domestic product will grow by 3.4 percent this year as measured from fourth quarter to fourth quarter. While that would be down from the 3.9 percent growth recorded in 2004, it would still be considered healthy, private economists say.


This is the mindset and the effect of republican engineering of the economy over Bush's term. Failing businesses, layoffs, vanishing savings, non-evistent safety net, exploding health costs and record numbers without health coverage, yet, the economy is still considered healthy.

Ben Bernanke, the new chairman of the
White House Council of Economic Advisers,
sees us bent over with stagnent incomes,
rising debt and, job insecurity,
aggravated by doubled gas prices
that threaten to stay doubled,
and he concludes that we're in the perfect position.

[bballny]

1. couple of weeks

ago the headlines in USA today was that people are siphoning gas again.

[SoCalDem]

2. and driving away from pumps without paying

although I have not seen a "pay-after" pump around here in years :shrug:

[B Calm]

5. Drive aways are on the increase all over the country. Cost me 60

bucks the other day to fill my pickup.

[getmeouttahere]

3. Sure would like to know how the economy is growing...

when all I see are more jobs being cut or outsourced

[texastoast]

4. They just don't get it

Raise energy prices, and EVERYTHING has to go up (except my paycheck for some odd reason, at least so far, and our execs didn't want to address my cost of living raise question in front of all the employees last week).

It's a dog chasing its tail.

[kliljedahl]

6. Well as long as the NYSE is doing well, everything's just peachy.

Keith’s Barbeque Central