In the midst of all the civil war, quagmire, cataclysmic, doom and gloom reports about Iraq comes a shocking story from an even more shocking source. According to Newsweek, Iraq’s economy is booming (hat tip to Drudge, emphasis mine throughout):
Civil war or not, Iraq has an economy, and—mother of all surprises—it's doing remarkably well. Real estate is booming. Construction, retail and wholesale trade sectors are healthy, too, according to a report by Global Insight in London. The U.S. Chamber of Commerce reports 34,000 registered companies in Iraq, up from 8,000 three years ago. Sales of secondhand cars, televisions and mobile phones have all risen sharply. Estimates vary, but one from Global Insight puts GDP growth at 17 percent last year and projects 13 percent for 2006. The World Bank has it lower: at 4 percent this year. But, given all the attention paid to deteriorating security, the startling fact is that Iraq is growing at all.
Amazed? Shocked? Sound like those who claim that only the negative side of the story is reaching our shores? Well, there’s more:
"Iraq is a crippled nation growing on the financial equivalent of steroids, with money pouring in from abroad. National oil revenues and foreign grants look set to total $41 billion this year, according to the IMF. With security improving in one key spot—the southern oilfields—that figure could go up."
And more:
Even so, there's a vibrancy at the grass roots that is invisible in most international coverage of Iraq. Partly it's the trickle-down effect. However it's spent, whether on security or something else, money circulates. Nor are ordinary Iraqis themselves short on cash. After so many years of living under sanctions, with little to consume, many built up considerable nest eggs—which they are now spending. That's boosted economic activity, particularly in retail. Imported goods have grown increasingly affordable, thanks to the elimination of tariffs and trade barriers. Salaries have gone up more than 100 percent since the fall of Saddam, and income-tax cuts (from 45 percent to just 15 percent) have put more cash in Iraqi pockets. "The U.S. wanted to create the conditions in which small-scale private enterprise could blossom," says Jan Randolph, head of sovereign risk at Global Insight. "In a sense, they've succeeded."
Finally:
Consider some less formal indicators. Perhaps the most pervasive is the horrendous Iraqi traffic jams. Roadside bombs account for fewer backups than the sheer number of secondhand cars that have crowded onto the nation's roads—five times as many in Baghdad as before the war. Cheap Chinese goods overflow from shop shelves, and store owners report quick turnover. Real-estate prices have risen several hundred percent, suggesting that Iraqis are more optimistic about the future than most Americans are.
Unbelievable. Think any of this will be front-page news or the lead story for the Nets some time soon? Or, will that have to wait until there’s a Democrat in the White House that can take all the credit?
—Noel Sheppard is the Associate Editor of NewsBusters. Follow him at Facebook and Twitter.
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...always a pleasure:The boom
December 18, 2006 - 17:20 ET by TruthMonger...always a pleasure:
The booming quagmires of Florida, California and Iraq
http://victorhanson.com/articles/hanson041206.html
http://www.news.com.au/story/0,23599,20716640-1702,00.htm
Well done President Bush, Secretary Rumsfeld, and coalition members!
And once again the giant FU to the left wing Iraq-undermining traitors of the world...HEH-HEH-HEH!!!!!!!!!!!!!!!!!!!!!!!
Noel,This really isn't so sho
December 18, 2006 - 17:59 ET by Indiana JoeNoel,
This really isn't so shocking, because I'm obviously still asleep and dreaming.... ;^)
Wonder how this compares with South Vietnam's economy during that particular "quagmire?" And if that will lead to a little "Yeah, but..." type coverage in the MSM. Or maybe they'll just say it's the oil money... if THEY say anything at all, that is.
One small thing. The sentence in your second paragraph, after the first quote, "Sound like those who claim that only the negative side of the story is reaching our shores?" seems incomplete. Would you meant to have ended that "...are right?" Or similar? Not to quibble or anything... maybe I'm misreading it....
Good job spotting this grain of wheat amongst all that chaff.
Regards,
IJ
"Experts say" or &q
December 18, 2006 - 18:29 ET by Edhenry"Experts say" or "Many say" or "Some say" that the timing of this story, after the election, is merely coincidental.
I do fault W for not communicating this data.
Yes, Ed, timing IS everything
December 18, 2006 - 18:39 ET by Indiana JoeYes, Ed, timing IS everything, isn't it?
While I feel that W has attempted to portray the positive aspects in Iraq, it's mostly been ignored. I agree, however, that the administration has generally mishandled the whole PR of this conflict. More should have been done before it got completely out of control.
"The Great Communicator" GWB definitely ain't! Too bad.....
Great communicator
December 18, 2006 - 18:42 ET by BarberianThey would just accuse him of lying again!
Bush: The Poor Communicator
December 18, 2006 - 22:17 ET by pearlW has good ideas but he has to be one of the worst leaders and communicators around.
Where is the Stormin Norman type general telling all the soccer moms what's going on in Iraq?
Why hasnt W been out every single day telling us what's going on?
Why havent we heard about any HEROES from Iraq? Great battles? Nothing but silence comes out of Iraq.
Cant the GOP find a motivational speaker like Osama (sorry I mean B. Hussein Obama)?
"Hussein’s scientists were on the verge of building an atom bomb, as little as a year away" New York Times Nov 2006
Exactly which Media Outlet sh
December 19, 2006 - 13:12 ET by JayTeeExactly which Media Outlet should/would print any of "W"s counter propoghanda on IRAQ ? If we believe EX-talking heads "W" already sends talking points to FOX news....and if the president DID send talking points to the Newspapers he would get all sorts of accusations from the Media, as trying to influence the Media with GOOD news, and we all know they only publish BAD news.
It's a sad state of the Media, when you can't get the Truth reported, especially if it's GOOD. Our only hope is to STOP buying the NYT, or better yet, STOP advertising in the NYT.....that'll will hurt the most, and shut them down.....remember, advertising in the newspapers, supports your local Liberal Journalists.
Investment Opportunity
December 18, 2006 - 18:35 ET by entIt sounds like Iraq would be a good investment opportunity. Does Iraq have a stock market? Are there any mutual funds that invest largely or exclusively in Iraqi companies?:
Good idea, ent! Now, if I onl
December 18, 2006 - 18:40 ET by Indiana JoeGood idea, ent! Now, if I only had some $$$ laying around.... ;^)
(btw, get that .pdf file okay?)
Tax cuts? Income into pockets
December 18, 2006 - 18:58 ET by FastEdTax cuts? Income into pockets? Tax cuts put more into pockets? How can that be? We've been told for years that . .. you mean the demolibs and media have lied to me all these years? I'm shocked?
There is no sense in being stupid, if you can't prove it! - my dad
Well, actually FastEd, tax cuts leave money in your pocket.
December 18, 2006 - 19:18 ET by acaiguanaWell, actually FastEd, tax cuts leave money in your pocket.
It's amazing how the Amerrican system of wages has evolved into the most subtle of muggings ever devised. People don't see the money (just another number on the pay stub) so people don't realize that it is theirs to begin with.
I'd like to see Corporations and Business pay out everything in cash. Then walk to the second table (and third and fourth, etc) for the Federal cut, the state cut, the city cut, the health cut, the retirement cut, the Union Dues cut, the miscellaneous 911 system cut...
Well you get my drift.
ACA
...
Acaiguana says: "Ya can't win if ya don't play."
'tis true - then we'd see wha
December 18, 2006 - 19:36 ET by FastEd'tis true - then we'd see what is really ours, or not.
There is no sense in being stupid, if you can't prove it! - my dad
ACA, it pains me to tax my em
December 18, 2006 - 20:24 ET by JABACA, it pains me to tax my empolyees the way I have too (and yes, they are ALL LEGAL) and pay the other half, so our (as in yours and mine ) government can get their share.
I am giving bonuses from $3500.00 to $500.00 and the hard working employees will only see 2/3 of what I can offer, while I match the governments deductions.
It may well be time for a rebellion, another "Tea Party" comes to mind.
"Too bad Ignorance isn't painful to the Ignorant"
It is always good for journal
December 18, 2006 - 19:23 ET by ucIt is always good for journalists to try to follow the money. How much longer will our standing with Iraqies as they develop their market and legal systems still make a difference? Oh and since in America married couples often have joint banking accounts wouldn't a Hillary Presidency also mean Bill was being paid again with the salary of President past his limited terms? Don't ask me about looking at same subject through market and customer service eyes of a home improvement contractor.
Whew, now that the Dems are &
December 18, 2006 - 20:12 ET by VT Con ManWhew, now that the Dems are "back in power" the reality can begin to roll out of the HATE BUSH MSM. That is the only reason this is coming out now. Anyone surprised?
All is as it should be now that the dims have a say...ready to lose your tax cuts? cut and run? you evil evil capitalists! (sarc of course)
MSM Arrogance
December 18, 2006 - 23:09 ET by jaywlToday I watched at report on CNN about Robert Gates being sworn in. Suzanne Malveaux transitioned to WH press secretary Tony Snow by saying this "Considering those tremendous stakes, it's not surprising the
president's pitch man is being extremely cautious about giving anything
away." Pitch Man? Snow is one of a long line of respected journalists to hold this position. For this woman to call him a pitch man is another example of the bias and contemp these people have. In her case it is shameful. I live in the D.C. television market and remember lovely Suzanne reporting on such important stories as storm drains overflowing and high wind damage (mayhaps D.C. excessive sewage and an overabundance of blowhards here). I don't know how she did it, but the pretty little thing's career sure took off from the mundane to trashing and very rapidly. But I remember her.
Another reason they're shocke
December 19, 2006 - 00:29 ET by Jason SmithAnother reason they're shocked about covering this story... is because of this gem down in the article:
Trickle-down effect... income-tax cuts... this story is a double-whammy on those tax loving liberals.
This just in....................................
December 19, 2006 - 00:35 ET by misterbillThis just in....................................Syrians have been caught sneaking in to Iraq under cover of darkness. A number of Iraqis are unconcerned. They say that the Syrians are only taking jobs that the Iraqis don't want.
However, when the Iraqi border patrol does catch an illegal, they ship his body back to Syria and mount his head on a pole in the desert.
Another news flash
December 19, 2006 - 00:39 ET by misterbillAnother news flash-- A sympathetic Iraqi of Syrian descent (named Ahmad Tumbla) said, "Ah, but if you could look in to their eyes and see how sad they are. You would feel so differently about them." "You can't deport all of them, we don't have enough camels".
misterbill...
December 19, 2006 - 00:56 ET by ww thumpermisterbill... ;-))) .....Political correctness when dealing with Islam will kill america....ww .....
misterbill..Dang !! That
December 19, 2006 - 00:46 ET by ww thumpermisterbill..Dang !! That is intense! :-) .....Political correctness when dealing with Islam will kill america....ww .....
GDP growth at 17% and 16%; 34
December 19, 2006 - 07:38 ET by Senior ChiefGDP growth at 17% and 16%; 34,000 registered companies up from 8,000 companies three years ago; 45% to 15% tax cuts; five times more cars on the street as before the war, etc. All these indications are showing better economy than ANY country right now. Even their tax cuts is better than GW's (and has proven that it excites the economy). I'm imagining WalMart- the most maligned store by the democrats- being built next to Saddam's old mansion.
To be fair with GW and SecDef Rumsfeld, they did try to convey the Americans regarding Iraq's progress, but they were silenced by the critics after speeches and went back to criticize becuase of their hatred of the president. Go ahead you leftist liberals, keep on blaming America...
Maybe we need Sectarian strife (Civil War) in the US :-)
December 19, 2006 - 08:01 ET by acaiguanaMaybe we need Sectarian strife (Civil War) in the US :-)
A good quagmire with a 16% increase in annual GDB would do wonders for those 34 Million Americans that go to be hungry every night. Just think of all the taxes the Government could take to redistribute to the hapless in order for them to buy their food so they can eat before they drink/drug themselves into oblivion.
:-)
ACA
...
Acaiguana says: "Ya can't win if ya don't play."
16%? Who knows?? The govern
December 19, 2006 - 08:06 ET by sarcasmo16%? Who knows?? The government's financial numbers are just so trustworthy these days...
JMR
Sarc, none of the government numbers can be trusted.
December 19, 2006 - 08:16 ET by acaiguanaSarc, none of the government numbers can be trusted.
It's all in the definitions. The GAO isn't the most politically nuetral office in all the land either. So, I don't have much faith in their audits. In fact, I have no faith in their audits.
Still, they are correct about auditing government. It is nearly impossible. And it isn't just definitions either, it has to do with the mentality of the bureaucrat.
I've actually come full circle in my lifetime. I started out in the business world and went into socially relevant non-government organiztion work as a lad fresh out of college. Then after about 8 years of that circus I realized that if I was ever going to be taken seriously by any banker or invester I better get out on the streets and get my hands dirty actually doing something in the marketplace.
As a consequence I have had my ups and downs but frankly I never saw anyone make money and produce a good or service without taking a risk.
Except when it was government related. There and only there can people 'lock in' on relationships and sneaky tricks to garner some piece of government largess and milk it for, well just forever.
So, whether you use cost, accrual, fund or cash accounting doesn't really matter. The beast is way beyond harnessing. They can't even define it anymore.
So, although I am often in your camp with respect to basic disgust at the government I still don't endores the Libertarian cause as I see it as a patchwork of too many contridictory ideas to actually work. That doesn't diminish the respect you have earned from me here on the site.
ACA
...
Acaiguana says: "Ya can't win if ya don't play."
Party-stuff aside, is it re
December 19, 2006 - 08:24 ET by sarcasmoParty-stuff aside, is it really too much to ask that big-mother use GAAP (Generally Accepted Accounting Principles) since they've forced all sorts of weird accounting on small businesses (like the one I'm in, we had to hire a full-time accountant after Enron -- gosh do I feel "protected")? I'm offended that the rules are different for government than they are for business -- money's money. I think a fiscally-conservative Democrat proposing GAAP-only accounting would become very popular (with me, anyway) and I look forward to the day when the Democrats study the ideas of William Proxmire almost as much as I look forward to the day when Republicans study the ideas of Barry Goldwater, as both senators had it right way-back-when IMO. But thanks for the kind words.
JMR