WHINING ABOUT THE ECONOMY

I’ve been reading and listening to a lot of whining about the state of the economy in the last few weeks. According to the candidates – on both sides, unfortunately – the economy is in the tank, the Great Depression is about to begin, and we’re all gonna die!

From the Democrats, life was wonderful during the Carter/Clinton years; and in the tank during Reagan/Bush I/Bush II. From the Republicans, the opposite.

Yeah, right. Let’s look at it. Here’s a chart of the state of the economy for the last 30 years. The top line is the Dow Jones Industrial Average, which I’ve used as a surrogate for economic growth. The bottom line is the annual inflation rate.

I don't know about you, but that looks pretty good to me. Inflation peaked at about 13% the last year of the Carter administration, and has steadily declined to about 3% in 2007. Economic growth as measured by the Dow Jones Industrial Average has been about 9% (post-Carter), with a breather the last two years of the Clinton administration followed by 9/11. Since 2003, growth has resumed in the 9-10% range.

Doesn't look so bad to me.

MORE ON TAXES

I wish I had known about this a week ago ....

DEAR INTERNAL REVENUE SERVICE,

Enclosed you will find my 2008 tax return showing that I owe $3,407.00 in taxes.

Please note the attached article from the USA Today newspaper; dated 12 November, wherein you will see the Pentagon (Department of Defense) is paying $171.50 per hammer and NASA has paid $600.00 per toilet seat. I am enclosing four (4) toilet seats (valued @ $2,400) and six (6) hammers (valued @ $1,029), which I secured at Home Depot, bringing my total remittance to $3,429.00. Please apply the overpayment of $22.00 to the "Presidential Election Fund," as noted on my return.

You can do this inexpensively by sending them one (1) 1.5" Phillips Head screw (see aforementioned article from USA Today newspaper detailing how H.U.D. pays $22.00 each for 1.5" Phillips Head screws). One screw is enclosed for your convenience.

It has been a pleasure to pay my tax bill this year, and I look forward to paying it again next year.

Sincerely,

A Satisfied Taxpayer

The pity of this is that when you've worked in the defense industry as long as I have and understand the byzantine Government acquisition process, a price of $171.50 for a hammer isn't totally unrealistic.