Democrats suffer from Americans' unwillingness to accept economic reality

[babylonsister]

Democrats suffer from Americans' unwillingness to accept economic reality

By Steven Pearlstein
Tuesday, October 19, 2010; 9:30 PM

snip//

The dirty little secret is that most Americans don't really know what they think about the issues that so animate the political conversation in Washington, and what they think they know about them is often wrong.

Most Americans still think that the bailouts of the banks, the auto companies and American International Group will wind up costing taxpayers hundreds of billions of dollars. In fact, the latest guess is that the government will come out even on the deal, and may even turn a profit.

Many Americans think that the economic stimulus package has been a failure. In fact, the estimates from a wide range of experts say the stimulus has saved or created more than 3 million jobs.

Many Americans believe their federal taxes have gone up in the past two years. In fact, for 90 percent of households, taxes were temporarily cut.

After the headlines of the past few weeks, most Americans probably think government has been able to do little, if anything to stem the tidal wave of foreclosures. In fact, over the past 18 months, two mortgages have been modified to avoid foreclosure for every completed foreclosure.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101907521.html?hpid=topnews

[zipplewrath]

1. A bit of distortion here

In fact, over the past 18 months, two mortgages have been modified to avoid foreclosure for every completed foreclosure."

Every COMPLETED foreclosure. There's alot of foreclosures in process. That ratio is going to change significantly. I know alot of folks in various stages, and NONE of them have been able to either qualify for any program, or to get their bank to participate. Their foreclosures aren't "complete" yet, but unless something changes, it's going to get alot worse.

It's a problem that the administration has with much of their efforts. The impact has to be "obvious" to the population, or they won't accept it as fact. Huge portions of the population barely understand their income taxes, and the refund they get each year is a complete surprise to them. So they don't notice a tax cut. Roughly 80% of the population wasn't impacted directly by the HCR changes at all, and those that were/are may have not even understood that the positive changes came from HCR because it was all mixed in with the annual changes we experience every year. More folks have noticed their costs going up, and deductibles increasing, and you can bet they were told it was due to HCR.

The same with TARP and the stimulus, no one is ever told their job exists because of TARP or the stimulus package. All they know is that unemployment is at 10%, and they are worried about losing their job because they all know someone who has and can't find work. Until that number gets below 8%, and probably further, people aren't going to "see" any positive changes. It's the "perception is reality" problem, and it's why the stimulus package was "too small". The stimulus package had an effect, economically, but politically, no one noticed.

[treestar]

2. Americans are the ones who are going to suffer

People need to quit depending on TV for news. They're just getting spin. It's lazy.

[Lasher]

3. Simpletons believe what they've been fed for the past 30 years.

Over the past 10 years the Bush tax cuts have cost $1.8 trillion. The wars in Iraq and Afghanistan have cost $739 billion and $357 billion, respectively. That's a total of $2.9 trillion wasted, contributing to an average $290 billion every year this decade.

But we have been repeatedly told we have to steal from widows and orphans to cut deficits, while keeping the tax cuts and wars going. A lot of Americans believe it. This is not just dysfunctional, it is corrupt.

[Cali_Democrat]

4. A failure on the media's part to lay out the facts

Nothing new really.

If the facts don't fit their narrative, they won't report them.

[moondust]

5. Exactly.

[elleng]

6. I wrote to Pearlstein:

'I disagree with your premise that Americans are unwilling to accept economic reality, and further that they don't know what they think. I agree that voters aren't as well informed as they might be.

The reason for this, in my opinion, is because the media so misinforms the public as to make it virtually impossible for most actually to BE informed about what has occurred and what is occurring. This hasn't always been the case, but it is now. Journalism is not what it once was, and the well-informed electorate is fading from view.'

[LatteLibertine]

7. Another reality

is many large corporations and banks are sitting on piles of cash hoping to keep the economy depressed and wrecked.

Why? They're hoping we all blame the Democrats and vote most of them out of office because many of those same Democrats are pushing for more regulation and increased transparency. They want to go back to business as usual under a GOP rule.

As Alan Grayson said, "Money can't vote." We need to get off our butts and support our Democrats on Nov 2. They've got the cash and we have the numbers. We just have to use them.

[raven42]

8. I was watching a lecture by economist Richard Wolff last night

on FSTV, and he said that we need to do away with the whole structure of Boards of Directors in corporations. Until we do things like that we're not going to see any rise in real wages for most workers. I think he's right; but the chances of fundamental changes like that being made in this country are highly unlikely. Too many voters buy into the whole right-wing economic ideology. And the corporations continue to use their wealth to buy elections for republicans. I think we're looking at a continuing, long-term economic decline for the U.S.

[elleng]

9. Pearlstein responded to my earlier letter, #6, and I replied to him:

Thanks for responding, but I'm not sure that's the case any more. In my opinion, the Post was much better at keeping us all up with things, that is, facts, than it is now.

Keep on keeping on!

Ellen

In a message dated 10/20/2010 6:52:25 P.M. Eastern Daylight Time, [e-mail] writes:
Ellen,

A regular reader of the Washington Post would be pretty well informed about things. Only thing: there are too few of them. So thanks for reading.


Pearlstein

[jeanpalmer]

10. Most of the money to the banks

was funneled through the Federal Reserve, not the official bailouts. By lowering bank borrowing costs to almost zero, the Fed gave the banks a huge gift that's we'll never recover. And what is the real cost, not just the out-of-pocket cost, of keeping therse swindlers in business, along with all their bad practices? And what is the moral hazard cost of doing so? Pearlstein is not considering the real cost.

Any tax reduction has been minor. But the increased future tax liability, in the form of increased federal debt, has been huge. Almost $3 trillion in 2 years. It dwarfs any tax decrease. But Americans like Pearlstein are living in denial that it's all free. LALALALA they refuse to face up to reality.

[denimgirly]

11. The reality is Obama and his Republican-filled Staff didnt want ot Get Tough to help the People

But gave everything to Wall St and Insurers....and this is the consequence. My fear is that after Nov 2nd Axelrod has hinted that Obama will be goign even more Right instead of realizing the problem was not listening to his base and doing something genuinely Left.