Howard County Maryland Blog

Local Politics and Current Events

Red Hot Economy Doing Poorly

Posted by David Keelan on Thursday, July 6, 2006

Huh?

Why are American’s pesimistic about the current red hot economy?

The economy has been speeding along at a pace.

Reporting on the economy is worse than the economy
By Larry Elder

From January through March 2006, the economy grew at a rate of 5.6 percent — higher than any in the last two-and-a-half years. Despite recent inflation scares, inflation remains low, at a 2.1 percent core rate. Unemployment, at 4.6 percent, represents a lower rate than the average during the ’60s, ’70s, ’80s and the ’90s. Since August 2003, the economy has created more than 5.3 million jobs.

In this case perception is not reality.

Despite high energy costs the economy is humming along.  Perhaps people are looking at the price of gas at the pump and BGE’s rate increases and translate that into “poor economy”.

States report record tax receipts. Sixteen states report revenue growth of more than 10 percent, with the strongest — Georgia — showing a 20.5 percent increase. Increased tax revenues occur during economic prosperity, with increasing incomes and therefore larger personal and corporate tax payments, as well as increased revenues from sales tax.

Locally, Howard County is experiencing surplus revenues in excess of $20M due in large part to Robey led tax increases.

It is interesting to note:

Media Research Center, a conservative media watchdog, writes, “During the Clinton years, network journalists argued (correctly) that strong economic growth, a rising stock market, low unemployment and low inflation were the benchmark indicators of a good economy. Today, economic growth is a phenomenal 4.8 percent, the stock market has been climbing for three straight years, and inflation and unemployment are both low.

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