How Bad IS The Economy?
Before making my main point, let me acknowledge that the economy is not going great guns. There are certainly some problems, the most significant (in my opinion) is all the fallout from the subprime housing market fiasco.
An aside: The subprime mess could have been avoided and was fueled by both greed and politics from the beginning… this was a self-inflicted problem… but that’s another discussion.
On top of that, add the sudden spike in oil prices. This would not have been so serious had the change been gradual, but the pace at which prices increased (which I believe was accelerated by speculation) added a huge emotional factor to the situation.
In my mind, it is remarkable that the economy is doing as well as it is DESPITE these two big factors! It just shows that it is in better shape than many would have you believe. That “many” would be most of the news media (AND certain politicians who will take advantage of any situation to further their own personal goals). Unlike years past, objective reporting has gone out the window… it is a rarity today. Instead, we get very biased “reporting” of most any event.
I’m getting very tired of the “glass half empty” perspective. I’m not one for ignoring the facts or trying to delude myself that something bad is really good… but, all things being equal, I’d rather look on the positive side.
Recently, information was released that U.S. GDP grew 1.9% in the second quarter. Not bad, since it was not a decline, but not as good as “experts” hoped after the stimulus package was released, so markets were down on the news and the media focused on all the bad aspects of our economy… which adds further fuel to a negative perception of the general public. But, bad news “sells” more than good news.
I’ve spoken with a large number of business people in various industries and parts of our country… while all say “things could be better”, very few are really crying in their beer. I’ve weathered some actual recessions and can clearly remember how customers and vendors .. not to mention family and friends… talked during those times. It does not compare to today. Not even close.
I’m willing to make a bet.
If the presidential candidate supported by most of the mass media wins, the reporting on the economy will take a sharp turn in a positive direction… our economy will become significantly better within minutes of the swearing in ceremony.
Any takers?
