Economic reality held at bay

Re “Tough remedies stay on shelf amid refinancing fever,” news analysis, Jan. 24

Politicians and economists define a recession as six consecutive months of declines in the gross national product. That outmoded definition is not realistic. It calls for extremely rare statistics to occur before politicians admit there’s a recession, and it perpetuates an artificial definition using one archaic statistic. A new formula should be based on practical measurements, including increases in unemployment, inflation, home foreclosures and credit card debt and decreases in the Dow Jones industrial average. These conditions reveal the true effect on American families at a down-to-earth level, showing how jobs, homes, debts and investments stand.

Today, it is clear that we are in a recession, even if politicians don’t want to call it that. This recession will continue and get worse for months without statistics ever showing six straight months of negative gross national product. So let’s be honest about how families are hurting and allow corrective steps to be taken earlier.

Sam McCarver

San Juan Capistrano

--

The overly aggressive rate cut implemented by the Federal Reserve was excessive. Most economists, including those with the UCLA Anderson Forecast, stated before this historic act by the Fed that the U.S. economy would avoid recession. No other world bank reacted to recent stock drops with a rate cut.

This disproportionate act is pacification to Wall Street crybabies and a bailout to many who have bought sub-prime loans with rates now resetting. This giant rate cut will increase inflation, negatively affect our pocketbooks, decrease the value of the dollar and produce a lower savings rate, which will hurt senior citizens significantly.

The Fed must keep the entire populous in mind, not just Wall Street. It’s wrong, and unfortunately many will feel the pain from this impetuous and reckless act.

Sean Jones

Hawthorne

--

America does not need a stimulus package; we need a sound fiscal policy.

If the government must give away our money (even though it can’t afford healthcare for our kids), then it should be in the form of a voucher redeemable only for goods produced in the U.S. That would help our economy and American workers.

Anything else is absurd and harmful to American economic interest.

Beatrice Shushan

Oceanside