In November, Michele Bachmann spoke to a group of loyalists on the economy and how we are currently living in a "recession proof" economy due to the tax cuts graciously bestowed upon the wealthy in 2003.

She made this claim:

“That’s what happens when you stimulate the economy from the private sector,” she said. Such stimulation makes an economy “recession proof,” she said, marked by “competition and prosperity.”

It is evident that Bachmann takes her economic cues from George W. Bush by living by the theory that if you say something long enough it becomes truth but here in the world of reality the economic forecast paints a far different picture. Previously, I gave significant evidence that this economy is far from great and certainly not "recession proof" as Representative Bachmann claims (see here, here, here, and here). Touting conservative economic stimulus ideas is one thing but Bachmann represents a vision so divorced from reality that it is inconceivable that she could possess the leadership needed to get us out of the current economic situation.

From the Washington Post:

Jobless Rate Hits 5 Percent, 2-Year High

Washington Post Staff Writers
Friday, January 4, 2008; 4:27 PM

The jobless rate rose to 5 percent last month, up from 4.7 percent in November, the Labor Department said today. That marks the highest jobless rate in two years and the largest single-month rise in joblessness since the 2001 recession. There are 1.1 million more people looking for a job but unable to find one than there were a year ago.

Bachmann can claim that the economy is growing all she wants, but the reality is that evidence over the last six months shows that while this economy has been prosperous for the wealthiest amongst us, the poor and even the middle class continue to lose ground. The people of the 6th District need to be reminded over and over again that Republican economic principles benefit the few over the masses and that despite their rhetoric that someday you may be one of those few it becomes increasingly difficult for anyone without a hefty trust fund to survive under this type of system.

"We are on the verge of recession now," said Robert Dye, senior economist at PNC Financial Services Group. "We are teetering on the edge of the precipice, and it will not take much to push us over."

Economists have been counting on a strong job market to fuel Americans' incomes, helping make up for the loss of wealth due to dropping home values. Thus, the weak report was a deep disappointment. The stock market fell on the news, with the Dow Jones industrial average closing down 257, nearly 2 percent, at 12,800. The Standard & Poor's 500 index lost nearly 2.5 percent, dropping 36 points to 1,412. The Nasdaq composite gave up 98 points, about 3.8 percent, to end the day at 2,505.

We may not be in a recession as of yet, but to make a claim as bold as "recession proof" is utter nonsense and whomever wins the nomination to run against Bachmann had better highlight this complete disconnect from the realities of every day life for people in the district, across the state, and across the country because avoiding it would be absolute foolishness. If we are unable to pull out of this economic tailspin, Bachmann is going to be in real trouble using phrases such as "recession proof".

Cross Posted on Dump Bachmann


3 responses to "Michele Bachmann & The Recession Proof Economy"

  1. Leo Pusateri On January 5, 2008 at 9:37 PM

    Since when does a five-percent unemployment rate spell disaster? That is statistically near full employment!

    Second, what is it that you don't get about growing the economy via growing jobs? When tax rates are kept low, people spend more money. When more money is spent, demand for goods and services increases. When demand for goods and services increase, more people are hired to meet the increased the demand. When more people are hired, more taxpayers are created, which increases the proceeds in the government coffers. JFK's tax cuts in the 1960s, Reagan's tax cuts in the 1980s, and Bush's tax cuts after 9/11 are proof positive that tax cuts work everytime they're tried.

  2. Political Muse On January 5, 2008 at 10:15 PM

    We have had these tax cuts for upwards of four years and job growth is lackluster (in fact here in Minnesota we are losing jobs). The Median income continues to fall while the ultra wealthy are growing wealthier. We are as close to recession as one could be. Where is this economic prosperity for everyone that comes with these tax cuts?

    By the way, even Greg Mankiw (Bush's economic adviser) debunks the myth that tax cuts increase revenue.

  3. Leo Pusateri On January 6, 2008 at 1:24 PM

    When there's under 5 percent unemployment, how many more jobs do you think we can create?

    If you look at the stats, tax cuts do most certainly increase revenue.

    The best welfare program is a job.

    Jobs come along and are created and maintained when people have more of their money to spend in the economy.