The term heard most frequently from the drop off in the housing market in recent months is collapse. In August 2006, a global economic service, RGE Monitor, called it the "The Biggest Slump In U.S. Housing In The Last 40 Years"

The chief spokesman for that group went on to say:

"I have also argued before that the effects of housing on US economic growth and the role of housing in tipping the US economy into a recession in early 2007 are more significant than the role that the tech sector bust in 2000 played in tipping the economy into a recession in 2001."

That was about as dire as one could get. There were many such voices in the doom and gloom crowd, last summer.

The Mainstream Media then and now has done very little to highlight the continuing good news that we've received month after month.

Why Is The Economy This Strong?

Luckily the tax cuts on individuals and on the cost of capital, have kept the economy on a robust pace. Increases in worker productivity are also a large factor.

These measures have also withstood the drop off in the auto industry, which has seen job losses in the thousands and losses in the billions to GM and Ford.

Now we get the news that GDP increased by a very healthy 3.5 % in the 4th quarter, giving us a final number for the year of 3.4%, also quite healthy.

GDP, wage and benefit gains, job growth, the stock market, business profits, revenues to federal state and local governments, take home pay, and too many areas to mention are churning out favorable numbers.

Will Democrats continue to deny the benefits to the average American because some at the top do better than others. Attacking the successful is the usual ruse for raising everyone's taxes.

Bill Clinton promised a middle class tax cut while seeking the presidency. He immediately raised income taxes upon taking office. Not only that, he initiated a separate tax increase on social security recipients, along with several other tax increases.

Since the George W. Bush tax cuts, the economy has added about $2.5 trillion dollars. How do we measure such numbers? That growth is almost identical to the entire economy of China.

What Really Hurts The Economy

A majority of economists predicted in July 2006 that the economy will weaken throughout the year. An economist who had a totally different point of view was Brian Wesbury.

Mr. Wesbury is Chief Economist for First Trust Advisors in Chicago, IL.

On July 10, 2006 he said the following:

"The four things that can kill an economy are all policy related - tax hikes, trade protectionism, government over-spending or regulation, and bad monetary policy."

1. Tax Hikes: Democrats always want tax hikes for redistribution to their 'victim" constituency.

In recent years, they've grown much more watchful of how much they can get away with. This may be due to the price paid in 1994, for Bill Clinton's 1992 deception.

2. Trade Protectionism: Democrats are beholden to unions. Unions want their members protected, even if it stifles overall growth.

We always here about the outsourcing of jobs but rarely is there talk of insourcing which often creates more jobs in the long run.

3. Government Over-Spending Or Regulation: Democrats always want more spending and more regulation. The first budget they submit will almost certainly be higher than what Republicans and the president will accept.

The minimum wage hike and certain other regulations have already passed, while others are just waiting their turn.

4. Thankfully, monetary policy is in the hands of the Federal Reserve. So far, inflation has been moderate. Class Warfare Damages The Nation

The politics of envy has the support of millions of Democratic voters. However tax increases have a negative effect on those who create jobs, even if they are upper income individuals.

If you are an everyday worker, not depending on government largesse, supporting tax increases and bigger government is a vote against your self.

Incidentally, lower tax rates have increased the share of the burden being paid by those at the very top.