Quick Notes Great Recession Two
Financial Bailout, Economic Recovery, Poverty Stuck at 15%, Income Stagnates, Wellbeing Grows

 A Quick U.S. Bailout History The $700 billion 2008 financial-sector rescue plan is the latest of many bailouts that go back to the Panic of 1792 when the federal government bailed out the 13 over-burdened by their Revolutionary War Debt 13 states. Private commercial banks and investment bankers took over and led financial bailouts until the Panic of 1907 when the economy was so big that J.P. Morgan needed US Treasury help. This led to the 1913 Federal Reserve System designed to be the lender of last resort.

   Recently the 1987 Savings and Loan Crisis bailout cost about $160 billion. Other recent government private industry bailouts have included: 1970 Penn Central Railroad 1971 Lockheed Corporation 1980 Chrysler Corporation 1984 Continental Illinois 1991 Executive Life Insurance Company bailout by states assessing other insurers and the 1998 Long-Term Capital Management bailout by commercial and investment banks. Think overcoming greed is difficult. US does better than most!
Recession Cost Were High But Growth Cured Budget Problems
 Economic Cost of Great Recession Estimated at 12.8 Trillion. Some add the loss in home values but this is a reach since the housing bubble had inflated values. US FED Profit of 100b in 2014 were up from 47b in 2009 and with 420b from 2010-14.   Source See Treasury financial analysis of Great Recession in Charts        

Think this is how we don't pay for war.

Bailout Made a Profit
681 Billion Treasury Inflows
Money refunded
Dividends earned
Interest
Stock Warrants   
Fees, equity, asset sales
Source/


390
260
2
10
20

 

  


616 Billion Treasury Outflows
Banks/Financial Institutions
Fannie and Freddie
US Auto Cos.
AIG
Toxic Assets Purchased
Mortgage Modifications




245
187
80
68
19
17
 

  
Chart 2 ". provides a first approximation of how correcting the 2013 poverty rate for noncash food and housing benefits, refundable tax credits, and upward bias in the CPI-U would change the 2013 poverty rate. With these corrections the official poverty rate falls from 14.5 to 4.8 percent, making the 2013 rate roughly a quarter of the 1964 rate (19.0 percent). If we were to lower the poverty threshold for cohabiting couples to match that for married couples the 2013 poverty rate would have fallen even more. From War on Poverty-Was It Lost NYT 4/2/15 Other Data 1  Data 2 Think different political philosophies use true but not necessarily appropriate data to make their share of the pie. With our obesity problem how could many have one to bed hungry during the Great Recession.

New Norma # 5 Profit
Beating Labor

  

Twenty-first century war expenditures helped profit recover after a dot com dot-com bubble recession, then crash with The Great Recession and then they grew to new heights. US Companies compete very well in a flat world using technology, outsourcing to Asia, Mexico...and by keeping wage increases low. Total compensation has done better though Obama Care has given gave companies an opportunity to again lower compensation. Source  More Data 1   Data 2. Think Rust Belt then NAFTA and soon TPP.

Most Significant Normal, Wellbeing, Continually Increased
1. Society's stability has resulted in tremendous economic growth which is key to individual well-being. The public safety net, child safety, and poverty rates after non-cash transfers have all improved over the last 100 years.  Think economic distress in Russia, Europe, Japan and China.
2) Scientific achievements have continuously added to citizen well-being. Think cured diseases, smart phones, streaming audio-video, Gillette Stadium ... See Health Problems Solved
3) Personal Income increased continuously if not always rapidly thanks to improved nature, nurture and personal characteristics. Think Russia, China, and Europe's really slow recovery from the Great Recession.  Source Is The Country In Trouble, Will Stagnate Income Hurt Our Children and Recent Decades Ranked By Problems.
Source #1    Source #2