The silicon valley is suffering from the effects of the "irrational exuberance" of the late 90's. Much of the low unemployment rates during the Clinton years were also a result of this. The country and the economy are coming back to reality, no thanks to economic #'s published by the Clinton administration, many of which were widly off the mark at best, or out and out lies at worst.

We finally have an administration with some integrity that is trying to follow a proven success plan, tax cuts. It worked when JFK did it in the 60's, in worked in the 80's under Reagan, and it will work now. It will grow the economy and create jobs, it does every time it's tried.


>James;
>
>We have to realize that only those people collecting unemployment insurance are “unemployed”. Our unemployment rate here in Silicon Valley is at about 9%. The real unemployment rate is unknown but thought to be 12 to 15%. I have several IT friends who have been unemployed for more than two years.
>
>If you are working you have no problem. If you are not working, who cares?
>
>The unemployed are just a statistic and once unemployment benefits are exhausted they no longer exist!
>
>We are having a record number of foreclosures and divorces in our area. Those are only numbers. If you survive that is fine otherwise that is also fine.
>
>Tom
>
>
>>Personally, I feel better taking care of myself rather than having the government do it. I also remember from my economics class (a number of years ago) that 6% unemployment was considered full employment. Recently that number has been changed to 5%. I wonder what the unemployment rate would be if the government would quit extending unemployment benefits.
>>
>>>The most recent figures indicate unemployment is at 6.0 percent nation wide.
>>>
>>>http://www.msnbc.com/news/908286.asp?vts=050220030630
>>>
>>>It seems strange or it may be a coincidence that the Nixon Administration sought a 6.0 percent unemployment rate to insure inflation would not be “above acceptable levels”. The Nixon plan did not work and inflation was not controlled. Economic plans 1, 2, 3, 4, and 4 ½ were put into action. They did not work. The economic plans required all salaried employees wages to be frozen (union contracts were not touched) and the price of goods was not allowed to increase.
>>>
>>>In a display of “loyalty”, American businesses immediately froze all wages of salaried persons. However, prices rose immediately. Inflation went unchecked so a series of economic plans as indicated above went into effect. Additional federal agencies were created to oversee the economic plans. Complaints were voiced about rising prices but nothing was done about it. Federal departments were created where people could report raising prices. The price of food went up dramatically. No companies were fined for raising prices, which was the “law”.
>>>
>>>The Nixon economic plans were finally dismissed and the economy returned to a near state of “normalcy”. I argued that our economy is too complex to micromanage and expect positive results. Nixon liked to micromanage everything. Think Henry Kissinger! Think how to micromanage the world! You get my point? If you lived through this period you remember what I am talking about!
>>>
>>>Another form of micromanagement went into effect when in the attempt to “save energy”, daylight savings time was changed. Mothers complained that at 0830 when their children were about to start school it was still dark! After a few weeks of this new national time, it was determined that an increase of 5% energy had actually occurred. Getting up in the dark required some people to turn on lights. This is the power that Nixon saw fit to express and “cure all our problems”. A real politician does something – anything- to show he or she is in charge. It may not work but you know they are there! We returned to previous time schedules which had been in effect for decades.
>>>
>>>When Clinton became President he attempted to create as many jobs as possible. The Republicans immediately voiced the “economic requirement” of a 6.0 unemployment rate to keep inflation in check. Republican economic experts could not believe that our nation could enjoy high employment and low inflation at the same time. The “economic model” was not working. It could not be explained.
>>>
>>>Enter a new Republican Administration. Unemployment goes up and it hits the magic number of 6.0 percent. Ah! Things are normal. This is the way it should be folks! The Republican economic team is at work and doing what it does best! No need to consider any changes in what the economy is doing. No need to invest any effort into improving the economy. When you have attained the “perfect model” based upon the magic 6 percent figure what else could you ask for?
>>>
>>>If you need a job, too bad! If you are working good for you! To be a success under Republican economic models, every dog must take care of him/herself. Start barking to express your acceptance of this wonderful period. Just remember this is nothing new that we are experiencing. The economy is as it should be. Bow wow!
>>>
>>>Tom