Re: Bush Sez "The Economy is "GREAT"????



Jerry Okamura wrote:

"Alan Lichtenstein" <arl@xxxxxxxxxx> wrote in message news:wZqdnRo_EZmDwybbnZ2dnUVZ_u6rnZ2d@xxxxxxxxxx
Jerry Okamura wrote:


"Islander" <nospam@xxxxxxxxxxx> wrote in message news:6ZWdndYQrdndoCbbnZ2dnUVZ_tbinZ2d@xxxxxxxxxxxxxxxxx

John H. Fisher wrote:

Bush Sez "The Economy is "GREAT"????

HOW GREAT IS IT???? Why is it we now pay more for a pound of fruit
or vegetables than we do for a pound of meat or poultry??? Why is it
that the price of goods and services have increased FAR BEYOND the
"average increase in income"???? How does the increase in income to
the ultra wealthy contribute to that "average increase in income"???

How much worse off is your situtation than it was yesterday??? Are
you more afraid of Al-Quaida than you are of a bridge falling while
you are on it??? How much more afraid of the overall failure of the
infra-structure, the loss of life as a result of an illegal war, and
impending bankruptcy of yourself AND THIS NATION, than you are the of
result of incompetence and criminality of the current
administration???

How much more is being confiscated from your Social Security, each
year, to pay for medical insurance??? How little have raises in SS
contributed to offsetting your cost of living increases???


Don't forget the cost of housing. The Affordability Index, published by the National Association of Realtors, has plunged 20 points nationally over the past three years and more in the northeast and west.


Which means what? That those who own homes are making out like a bandit, in certain parts of the country, and not so good in other parts of the country? That perhaps, the government should not take so much out of each paycheck to pay for their pet projects, which would allow more people to be able to buy that home?

Jerry, once again, you are unable to fathom the inferred concept in the OP's post, as well as Islander's response.

If you carefully read the OP's post, and perhaps Striper's remarks, you see that the underlying concept is that the economy is rapidly diverging society into a have and have-not class, consequently reducing the middle class.

Islander easily picked up that thought, and added that the Affordability Index plunging downward, is an indication and strong suggestion that the mass society is becoming increasingly priced out of the market for houses. Even if houses were to rise in price( as they generally do, over time ), if salaries and incomes of the working middle class rise, then affordability remains low. This index seems to reveal that wages and salaries and total income are NOT keeping pace, and therefore suggesting a problem such as I mentioned above, and such as Striper suggested as well. And a problem which Islander had no trouble understanding.

The relevant question it seems to me is why are salaries and income for working middle class american not rising? Who are these people? What are their levels of education? What percentage of their income is taken away from them through various taxes direct or indirect, and what would be the effect, "if" they got to keep more of the money? Here in Hawaii with the median price of a home or condominium at ridiculously high levels, how can you change the dynamics at work, if you do not figure out a way to increase the availability of jobs that pay well, and have the workers that can do the job. What policies can you possibly adopt, that would make homes more affordable, without hurting another segment of our society, which in this case would be those who already own a home?

I think that you may have a problem on a larger scale than we do on our relatively small island. The problem is that we have few resources other than the land which is limited and we are severely limited in what we can do to compete with mainland markets for goods and services that we might produce simply because our supply lines and transportation costs are higher than for similar businesses on the mainland. We have very high demand for property, primarily by mainland speculators and people who hope to retire here some day. As a result, housing prices have soared and even with the declines in real estate prices on the mainland, the market here seems to be holding. Buyers are paying cash! With the resulting inflation in the housing market, we are finding it increasingly difficult to retain a workforce for essential services.

What is the solution? Three of the islands in the San Juans are now investing in Community Land Trusts. These are non-profit organizations which purchase and hold land in perpetuity. They build homes on this land which they sell to working families subject to a land lease which caps the appreciation of the home at the CPI. Since the cost of the home is reduced to the cost of the structure, they are affordable and since the appreciation on these homes is limited, the community investment is retained. The homeowners have a much better deal than they would have in renting, they accumulate equity, but they don't get to speculate on rapidly inflating prices. There are now about 300 Community Land Trusts across the country. They work!
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