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Entries in Recession (79)

Wednesday
Jul102013

ALG's Daily Grind - Credit contraction, not austerity, cause of euro woes

July 9, 2013

Credit contraction, not austerity, cause of euro woes

In problem countries Portugal, Italy, Ireland, Greece, Spain, and Cyprus, credit outstanding — all debts public and private — is contracting. GDP and unemployment have followed suit.

Cartoon: In tow

Does Obama's energy policy need a lift?

IRS scandal makes the fire hot to deal with tax reform

The only way to fix the IRS is to slash it, and the only way to slash the IRS is to simplify the tax code. 

Fahrenthold: One grower's grapes of wrath

California raisin farmer fined $650,000 by Agriculture Department takes on New Deal relic program to warehouse surplus raisins.

Saturday
Apr202013

ALG's Daily Grind - Trips To Mars And RoboSquirrels Are Great, But They're Not The Job Of Government 

April 19, 2013

Trips To Mars And RoboSquirrels Are Great, But They're Not The Job Of Government

Just because there are a myriad of acknowledged practical applications derived from government funded research doesn't mean these discoveries wouldn't have been made — and made faster and cheaper — without government interference.

Is student debt weighing down the economy?

New York Fed publishes study, "Young Student Loan Borrowers Retreat from Housing and Auto Markets."

Iron Lady Thatcher: Last From A Great Era

Every generation has a tendency to view the past through rose-colored glasses.  However, rainbows and lollypop reminiscing aside, the 1980's truly were remarkable. America and Britain were unified countries, evidenced by substantial electoral victories by Reagan and Thatcher.

Evans-Pritchard: Cyprus bail-out vote stirs fresh jitters as slump fears grow in Europe

"Cyprus has stunned EU officials by ordering a vote in its parliament on the terms of the EU-IMF Troika bailout for the country, risking a rejection by angry lawmakers and a fresh eruption of the crisis."

Friday
Apr052013

ALG - Loosening lending standards, which caused the crisis, will not solve it

April 4, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement blasting a push by the Obama Administration and the Federal Reserve to once again loosen mortgage lending standards to increase the pool of eligible homebuyers:

"To suggest that lowering credit standards is the solution to the financial crisis is to ignore the past 20 years of history. The fact is, borrowers can already get loans from Fannie and Freddie for as little as 3 percent down, and from the Federal Housing Administration for as low as 3.5 percent down. Prices have not been this low since 2003. And interest rates have never been this low.

"The problem in the housing market is not a lack of lending capacity, which is virtually limitless as banks are sitting on $1.6 trillion of excess reserves. It's that even with it as easy as it is to get a loan, demand is still very low in the weak economy, and therefore it's not easy enough for the central planners, so the push becomes to lower credit standards.

"The same thing happened after the 1991 recession when credit slowed down. By 1992, Congress had agreed to institute and expand the GSE 'affordable' housing goals, which required an increasing percent of government-backed mortgages to be of lower quality, which contributed substantially to the housing bubble. Since the economy is addicted to credit expansion, in order to grow, the incentive is for lending standards to become progressively weaker over time. By 2007, when the bubble popped, those goals had expanded from 30 percent of Fannie and Freddie's portfolios to 55 percent.

"This is what happens every time the government wants to facilitate credit expansion to bolster asset prices. After the stock of available borrowers based on current credit standards is exhausted, the only recourse left to policy makers is to weaken credit standards. When this leads to asset bubbles and credit collapses, as it already has, then the American people are told that the banks that made the loans must be made whole through bailouts whether from Congress or the Federal Reserve. We've seen this movie before. It is a fraud and it will only lead to a repeat of the 2008 meltdown."

To view online: http://getliberty.org/loosening-lending-standards-which-caused-the-crisis-will-not-solve-it/

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Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.

Friday
Apr052013

ALG - Unemployment rate drops as 663,000 abandon workforce 

April 5, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on the latest job numbers:

"663,000 Americans dropped out of the workforce last month.  206,000 fewer Americans were employed.  290,000 more Americans were unemployed.

"Yet, the headline will be that the unemployment rate dropped in March to 7.6 percent.

"Never has the lie of the improving Obama economy ever been more starkly revealed than in today's March unemployment report, where the consequences of the destruction of the American workforce by policies that promote government dependence over work are hidden behind a statistical drop in the percentage of workers who are unemployed.

"At this rate, Obama may just make history by achieving a 0 percent unemployment rate because nobody's in the workforce. You might just call that full unemployment. "

To view online: http://getliberty.org/unemployment-rate-drops-as-663000-abandon-workforce/

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Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.

 

Saturday
Mar092013

ALG - Positive job growth doesn't stem workforce participation collapse 

Labor Participation has not been this bad since 1981

March 8, 2013, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement in response to the latest job numbers:

"Private employers continue to move forward in creating jobs in spite of regulatory headwinds and higher taxes.  Incredibly, while the number of jobs created by the private economy continues to grow, the number of people who are abandoning the workplace also continues to accelerate.  In February alone, almost 300,000 more workers left the workforce and the percentage of workers in the labor force dropped to its lowest level since 1981 at 63.5 percent.

"It is stunning that in spite of running a consistent trillion dollar plus deficit, with the Federal Reserve propping up the housing sector to the tune of $40 billion a month, that we are still seeing a mass exodus from the workforce by Americans in Obama's economy.  In fact, almost twice as many Americans just said no to the Obama economy than got jobs in February.  This stark rejection of hope for a better future by so many, stands as a bright red warning sign about our economy's long-term future."

To view online: http://getliberty.org/positive-job-growth-doesnt-stem-workforce-participation-collapse/

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Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.