From: depken@rigel.econ.uga.edu (Craig Depken)
Subject: Some thoughts on economic illiteracy (a)
Summary: Economic illiteracy is campaign fodder. 
Keywords: economics, illiteracy, disclaimed comments, Rush 
Organization: University of Georgia Economics Department
Date: Sat, 19 Dec 1992 06:25:24 GMT

-------------------------------------------------------
		Disclaimer
-------------------------------------------------------

These are my own thoughts, and not necessarily the 
thoughts of the University of Georgia, or the Economics
Department of the University of Georgia

-------------------------------------------------------
		Disclaimer II
-------------------------------------------------------

I am not posting this disclaimer again, so I disclaim
any offense of anyone who accuses me without reading 
the first of this series. 
-------------------------------------------------------



I have been sitting around here since finals let out last week and have
 been trying to watch and listen to what is going on. A few thoughts as
 to what might be happening.

I study economics for a living, and to that end, I may [;-)] have a bit
 more basis for the things that I am going to say. Don't take that as
 being a shot, since economists differ as for what they stand and believe
 in as much as politicians, religious leaders, etc. But some facts are 
 facts and there can be no denying them.

First off. Rush does a good job of relaying news that he sees in the 
 printed press on dealings with the economy. His reports during the 
 campaign were as accurate as those who wrote them wanted them to be.
 Herein lies a bit of a problem, in that their is a major problem of
 economic illiteracy in this country. As that is the major way to get
 the public to listen to you, i.e. talk about taxes, deficit, etc. 
 (see Perot, 1992), this proves to be a major problem. When people
 discuss economics, it is most often sickening to an economist becuase
 either what they are saying is patently false, or it makes no sense
 and there is no telling if it is false or not.

I don't want flames on this, but realistic comments will be answered
 when I get back from the X-MAS week. I will be around until Sunday
 afternoon. 

If ya' flame ya' lame...


craig.


Some examples:

a) Worst economic times in 50 yrs (Clinton): 

	P.E.B.C. claimed that the economy was in the worst shape in 
 	50 years. This is hardly true in the real sense, but her is
	how he could back that up. In comparison with the rest of
 	the world, our growth rate is still higher than the other
	developed countries, but not as high as it used to be. Unfortunately,
	he failed to mention the obvious (if you know what to look at). 
	
	The reason that he can get away with such a claim is two fold. First
	50 years ago, this country experienced an unparalleled growth rate
 	for a developed country. The main reason was WWII, and the fact that
	the developed countries of the world, e.g. Germany, Japan, Britain,
	France, Scandanavia, Russia, etc. had ZERO production potential.
	As the only country that survived that time-period with an intact
	production structure, it is no wonder we had such explosive growth
	well into the 1960's - we were rebuilding the world for much of 
	that time. Well, today the rest of the world is industrialized,
	competitive and at relative peace. Production across the globe
	is much tighter and the gap between the U.S. and the other 
	economic powers across the world is not what it used to be. Big
	deal!! We are still the best in the world at most production 
	technology, far better in R&D, space, aero-space, pharmaceutics,
	silicon tech, etc. etc. We have the most productive labor force,
	when it decides that it wants to work, in the world. No one in
	the world competes with us and they know it. Even the Japaneese
	still come over here to learn from us, though they are getting
	better by the day. 

	So, the economy may be in the worst shape it has been in when
	compared with the rest of the industrialized world, but this
	time would have come a lot sooner if it had not been for WWII.

	Thus, PEBC et. al. prey on the fact that the country doesn't have
	the time, knowledge, or desire to think about what it means when
	he says something. The media catches hold of it and plays it up
	to the best of its ability. I don't blame them for making it 
	sound worse than it is...everyone knows that good news doesn't 
	interest anybody, but I wish the whole story was being told.



Newsgroups: alt.fan.rush-limbaugh